has been tight about their plans for improved streaming services, which are expected to be presented on Monday. But analysts are already trying to handicap who may be the biggest winners and losers of the announcement.
News reports have hinted at the details of what the event could bring, but Apple has kept its cards close to its chest. It did not respond to a Barron's request for for more information.
SunTrust Robinson Humphrey analyst Matthew Thornton wrote in a note to customers on Thursday that he expects Apple to release a streaming service containing third-party content and custom shows. Starz and Showtime are reportedly on board, Thornton notes. The company has also signed an agreement with Steven Spielberg and Oprah Winfrey, including for Apple's own content.
Although Apple has previously offered its own streaming TV programs, the new service is a major step and can also affect other companies. 19659005] What's new. Thornton ser
Lions Gate Entertainment
(LGF.B) as among the biggest winners of the Apple service. The premium cable channel Starz accounts for about 65% of Lions Gate profits, he notes, and a deal with Apple can help the channel reach many new listeners. Starz declined to comment on whether it will be on the platform.
The competitive pressure is not a good thing for
(NFLX), but Thornton expects some repercussions to be relatively small. "From where we sit today, we do not expect any consequences to be meaningful for Netflix," he wrote.
It may also be a less negative for Spotify (SPOT), but only if Apple connects the video to his music offer, Thornton claimed. "If Apple bundles Apple Music with video subscriptions and news subscriptions, this would be an incrementally negative for Spotify," he wrote. "From where we sit today, we can expect some consequences to be managed."
will vary greatly depending on whether Apple offers Roku Channel on its new service and if Roku offers Apple's app. If companies stop competing, Thornton believes it is "a modest incremental negative as Apple competes for content revenue (for example, someone who signs up to Starz or Showtime via Apple does not sign up for these services via Roku)."
Looking forward to. Unlike Apple's market-watching hardware knowledge, this event seems less likely to change the game. Apple is not a dominant player in streaming, and its previous exhibits have largely been duds. Any effects will likely play out over a longer period.
It's probably not meaningful to buy or sell shares based solely on fear or excitement about Apple streaming.
Write to Avi Salzman at [email protected]