With a growing subscription base, analysts at J.P. Morgan estimate that Apple Music and Arcade will generate $8.2 billion in revenue by 2025. As reported by Reuters, analysts expect that both Apple Services will reach a combined 180 million subscription base in the next two and half years, and will see a 36% increase in their revenue.
Apple Music is the second-biggest music streaming service in the world, after Spotify. The audio streamer offers a vast library of songs, podcasts, curated playlists, exclusive interviews, and much more for $9.99 per month, and $4.99 per month for college students. Music introduced Spatial Audio and Hi-Fi Lossless Audio support on iOS and Android without an increase in subscription cost which has been a massive hit with the listeners.
Arcade is the tech giant’s gaming service that offers a growing catalog of classic and contemporary games across Apple devices without any in-app purchases and ads for $4.99 per month.
Apple Music alone is expected to bring in $7 billion in revenue by 2025
The team of analysts at J.P. Morgan led by reputable analyst Samik Chatterjee estimates that by 2025, Apple Music will hit 110 million and Arcade will hit 70 million paid subscribers. They accredit the rapid spread of the internet and flourishing gaming industry as the reasons for the boost in both services.
The company does not give a sales breakup for gaming and music services but the overall segment, which includes App Store, Apple TV+, Arcade and Apple Music, reported revenue of $19.82 billion for the March quarter. The business is seen as Apple’s engine for expansion.
Based on the paid subscribers numbers, analysts expect Music to rake in $7 billion and Arcade to bring in $1.2 billion in revenue by 2025.
Chatterjee, who is rated five stars for his estimate accuracy on Apple by Refinitiv Eikon, expects the gaming-market size to hit $360 billion by 2028 and music streaming to reach $55 billion by 2025.