Will Apple Become the Largest Media Company by 2020?
Apple, the biggest Tech giant around, has great chances to become the largest media company by 2020 as well. The iPhone and iMac manufacturer has set another landmark recently when it hit the $1 trillion value on the stock market and became the first public company to reach that number. With the thought in mind, we are wondering if it can set a new record and beat companies like Spotify or Netflix in the media field.
Currently, the most iconic product of Apple, iPhone, generates 60% of the profits earned by the company and there are signs it will not stop here. Every new smartphone released by Apple sees great success, and it’s rapidly adopted by millions of people worldwide. However, the iPhone is not the only product that comes out from Apple, and the company is famous for its services as well. Apple’s App Store, Apple Music, and Apple Pay have seen rapid growth over the years as well. The App Store is currently 30% of the company and has great chances of growth in the future as well. Will Apple, however, succeed in becoming the largest media business company in the world by 2020? The powerful business has great prospects, but other players like Netflix or Spotify upped their game and took a major share of the market. So, the question still remains that, will Apple be powerful enough to top that? Here are a few reasons why it might become the largest media company in the world by 2020:
Apple has the most diverse services in their apps
The company has invested a lot in its services like App Store and Apple music to grow it into a large media company that will top the competition. The revenues for these services are already incredible – more than $80 billion in 2016 for mobile apps globally. The number is forecasted to grow to $189 billion until 2020, which is another record Apple would be setting if it manages to reach this number. They would grow 3 times in just 4 years, a performance not many companies achieve in their lifetime in business. Plus, Apple is set to reach over 5 million applications in App store, which is probably the largest database of its kind. It seems Apple’s mission is to continue to grow stronger and higher.
Apple has invested in streaming
Apple is not competing with services like Netflix or HBO Go as it invested in streaming. At first, they tried and failed – many Apple users didn’t even bother to try their new feature, and they did no good at promoting it. However, Apple has made a comeback with a streaming service – they hired the best talent on both ends of the camera and are working on increasing their subscription number. They are looking to become the leader of this industry as well and, as we know Apple, they might succeed.
The news app
Apple has big plans to become the most powerful company in the media services. Even though they invested a lot on the streaming side, but they didn’t stop there. The Apple News App is there to tackle publishing, a new field for the company. With their budgets and experience, it’s only a matter of time until Apple becomes a big player in this industry as well.
Apple Music and Spotify
The very recognizable Apple music app has grown a lot since it first started, which proves that almost any application by Apple will succeed at some point. They made the right move to make Apple Music available for everyone whether they owned an iOS device or not, and that has certainly attracted many users. They want to be the best in this field as well and top services like Spotify, which is one of the largest of its kind. Why did Apple Music work? Well, there are a few factors: a good price (about $10 a month), easy to use and available everywhere.
Large budgets and specialists
So, Apple wants to become the largest media company in the world and achieve it in a couple of years. They have a good shot at this, with their budgets and a lot of specialists that work for Apple. They are looking to build an exclusive service where the user will have access to magazines, music, and TV/online streaming, which is integrated with the Apple devices. However, they might have bigger chances to succeed if the applications will be available to anyone. Plus, if they price it right, many users will be curious to discover the new Apple experience. Specialists do say that Apple has the money to pull this off, which means a great promotion strategy, advertising, launching and so on. Plus, a lot of talented people are hired at Apple and can transform this plan into a great experience for users.
They have millions of users
One important factor for the success of any new thing is the customer base. Apple already has a great and large customer base which certainly is going to help them become the biggest media company by, at least, giving a try to all their media offerings. With so many people using iOS systems around the world, it would be easy to kick things off and make the new platform known through positive word of mouth generated by users.
Apple is now the first company to have a worth of $1 trillion, and they will not stop here for sure. Right now, they have a new objective: becoming the largest media company in the world and overtake companies like Netflix and Spotify. The reasons listed above might be exactly the reason why Apple will succeed by doing just that. If that’s the case, the streaming service market will look totally different in a couple of years. We should probably live and see if Apple succeeds in this new plan and becomes the biggest media company in the world by 2020.