Apple's subscription news and magazine service Apple News Plus could reach 19 million paid subscribers by 2023, according to an analyst.
Investment bank Cowen analyst Krish Sankar believes Apple News Plus had about 11 million paid subscribers in 2020, generating revenue of about $550 million.
Going forward, Sankar believes that Apple News Plus could reach 19 million subscribers by 2023.
That could rake in $1.14 billion in subscription revenue and $1.02 billion in digital ad revenue from ad impressions, resulting in a total of $2.2 billion, reports Apple Insider.
"We believe Apple's News app and the News Plus paid subscription service (News platform) are well positioned to not only benefit from incremental subscriber additions but also accelerating advertising revenue growth," Sankar wrote.
The analyst believes Apple News Plus could be bolstered by both improving advertising platforms and a shift away from the Identifier for Advertisers tracking tag used on mobile devices after the release of App Tracking Transparency.
The privacy feature, Sankar adds, could be a "disruptive event" that levels the playing field for ad networks in the iOS ecosystem, the report said.
The analyst adds that Apple's advertising endeavors could be on an encouraging trajectory because of the maturation of Apple Search Ads (ASA) on the App Store.
Apple leveraging ASA and the recent changes to IDFA could accelerate ad revenue from Apple News in the coming years.
--IANS
vc/ksk/
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU