When Apple CEO Tim Cook went to the scene last week to present his streaming television service, Apple TV +, it upgraded a major change in the company's thinking.
Apple will continue to be the company that sells you iPhone, iPad and Mac, but it also wants to turn into a digital content service company that charges content such as cloud storage, streaming music, news and access to television. shows and movies.
With fewer people who regularly buy a new iPhone, Wall Street closely monitors how the new media companies work for Apple. And the picture is a bit confused.
Note The Morgan Stanley sent to clients this week explores how much money Apple made from entertainment on the App Store. This category includes such programs as Netflix, Hulu, Amazon Prime and HBO Go, but does not include streaming music services. This is Apple's main revenue driver, since it can hold up to 30% of connection fees for these applications.
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And Morgan Stanley found that after a year of quarterly quarter-on-quarter growth of 104%, everything is slowing down . In March, revenues from entertainment programs increased by only 26%. In other words, Apple is still increasing its revenue from entertainment, but not so fast.
Here is a chart where you can see the case:
Analysts believe that this is the Netflix effect, after the service stream decided to circumvent the payment rules of Apple, this is means that she must transfer up to 30% of the subscription fee. Netflix now redirects new iPhone and iPad users to their site to set up a payment there, and not through the App Store.
According to data provided by Sensor Tower, which is also at the core of Morgan Stanley research, Netflix provided Apple with $ 256 million in revenue last year. This was Apple's highest gross app installment in any category, so it makes sense that its payment changes would significantly affect Apple's entertainment revenues.
Negative for Apple is that entertainment is its second largest category in the App Store, behind the games.
According to analysts of the bank: "Entertainment is a category that should be considered after a significant slowdown. Entertainment (which does not include music) is the second largest category in the App Store."
They add that the impact is still "relatively small," because they figured that Apple only lost about $ 33 million in revenue in March, equal to 0.09% of the total revenue of the App Store.