Rumors are circulating that Apple will announce a new streaming service later this month.
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FOX Business' Charles Payne says that might be the smartest move the tech company can make right now, because the streaming service industry is on fire.
According to a year-end revenue report by the Recording Industry Association of America, the U.S. music industry posted its third consecutive year of double-digit growth. The report notes that in 2018, U.S. recorded-music revenues rose 12 percent to their highest level in 10 years at $9.8 billion, beating the record of $8.8 billion from the previous year but still below 2007’s $10.7 billion record.
This is largely due to the boost in paid music subscriptions, which rose 42 percent to 50.2 million from 35.3 million in the previous year and 10.8 million in 2015. Streaming service revenues soared 30 percent to $7.4 billion from $5.7 billion in 2017 and $2.3 billion in 2015.
Music isn’t the only area of streaming that is performing well. Digital media streaming services like Roku and Netflix are up 116 percent and 33 percent in the last two months alone.
Sarge986 President Stephen Guilfoyle isn’t so optimistic about Netflix. During an an interview on “Making Money with Charles Payne” on Friday, Guilfoyle said, “I believe Netflix is a short here. I think its run too far now.”
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He said that his opposition towards Netflix is because of his feeling that the streaming service is too overpriced and that there is too much “aggressive competition in the streaming space”.
“I don’t think Netflix has the ball and can run with it by themselves,” Guilfoyle added. “It’s going to be very expensive for Netflix to keep doing what they're doing.”
Instead, Guilfoyle says a smarter buy in the streaming space would be Disney.
“I think Disney is actually the investment in the streaming space…Disney is going to eventually pull all their content home when they’re competing directly against Netflix. Netflix is going to have to create all their own shows, which they’re doing already, but their margin on those shows is really not that up.”
Disney is planning to launch their own streaming service, Disney+, in late 2019.