- Apple saw a big drop in income from entertaining apps in the App Store in March.
- According to Morgan Stanley, who put a note out that the App Store had reduced its value and the value for money was maintained.
- This comes after Netflix draws on iTunes billing, pulling Apple up to $ 256 billion in the App Store income.
- Apple is currently trying to stand as a service as well as a hardware industry, so people can charge for music, films, TV shows and news.
When Apple congratulated CEO Tim Cook last week to introduce his TV service, Apple TV +, he had a great influence on the company's thinking.
Apple will still be the supplier of the iPhone, iPad, and Mac, but it also wants to be a digital services company that costs you for content such as cloud storage, music flow, news, and access. TV programs and films.
With fewer people buying a new iPhone regularly, Wall Street is keeping a close eye on how Apple's new media industries are coming. And the picture is very mixed.
Morgan Morgan Stanley has put clients up a week exploring what makes money on the App Store. That category includes applications such as Netflix, Hulu, Amazon Prime and HBO Go, but there are no music services. He is an enormous revenue driver for Apple as he can pay up to 30% of membership fees.
Read more: Apple made $ 156 million from the mobile music service it was trying to tidy its app industry
And Morgan Stanley found things are getting slower after a year of 104% seasonal growth. Income from leisure applications was only 26% year-on-year. In other words, Apple is still growing on entertainment income, but it is not so fast.
This table, where you can see the dropoff:
- Morgan Stanley
Researchers have claimed that this is the Netflix effect, after the service has decided to avoid Apple's bill rules, meaning it has to go up to 30 days. % of subscription charges given. Netflix is now redirecting iPhone and iPad users to its own site to set up billing there, rather than through the App Store.
According to the figures provided by Sensor Tower, which is also the base for Morgan Stanley's research, Netflix spent up to $ 256 billion in Apple's income last year. Apple's top app is in any region, so it ensures that its bill changes have high contamination in the Apple sports income.
Apple's bad thing is that entertainment is the second biggest app on the App Store, behind play.
As bank inspectors wrote: “Entertainment is a division to watch after a big mistake. The second biggest App Store section is entertainment (not including music).
They also argued that the influence is still "relatively modest", as they discovered that Apple lost out only about $ 33 million in income in March, which was equivalent t to 0.09% of the total App Store cost.