Hot on the heels of rumours about Apple’s Web-TV service, Morgan Stanley analyst Katy Huberty has issued a note to investors quickly sketching the potential this service has in terms of earnings in the next two years (via AppleInsider).
Given the flurry of rumours around the online TV service, Huberty believes it is more likely to happen than it was last year. She also added the Apple TV price cut into the mix, as well as a second major step, an exclusive launch deal with HBO Now.
After analysing the results of a recent survey, Huberty concluded that Apple could add 15 million subscribers to its online TV service in the US alone, which is roughly 8 percent of the company’s install base. “Doing so with 30 percent operating margins could add 2 percent to the company’s revenue,” she said.
The same survey revealed that about 20 percent of pay TV subscribers plan to ditch cable for television in the next 12 months, with the highest cancel rate coming from the 18–44 age group, as well as those earning more than $75,000 a year.
The online TV service would add a spot of colour to the Services category which includes the iTunes Store, App Store, Apple Pay, and Beats Music, a category which she predicts will account for a fifth of Apple’s total revenue in the next few years.