Apple music, gaming to bring in over $8 billion in revenue by 2025, JPMorgan says

The two services are likely to have a combined subscriber base of about 180 million by 2025 – 110 million for music and 70 million for gaming – boosted by the rapid spread of the internet and a booming gaming industry, according to JPM analysts, led by Samik Chatterjee.

Apple Music, which was launched in 2015 and is the second-biggest music-streaming service after Spotify Technology, is expected to account for a bigger chunk of that revenue, raking in about $7 billion by 2025, the brokerage said.

Apple Arcade, the gaming subscription service launched in 2019, is estimated to pull in $1.2 billion.

Apple did not immediately respond to a request for comment.

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.

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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.