How Apple Is Using Snapchat to Boost the Video Industry
Apple is using Snapchat to boost the video industry by adding hundreds of thousands of dollars in revenue every week, and the company has made it clear it plans to continue expanding its platform for creators and consumers alike.
According to an SEC filing, Apple’s revenue from its YouTube video platform increased by an estimated 4.2% last year, thanks to the Snapchat platform.
Apple has said Snapchat will grow its subscription service revenue by about 2.6% to about $8.4 billion this year.
While Apple’s investment in Snapchat will continue, it is also possible that it could see a slowdown in growth, according to some analysts.
“If we see a decrease in the number of new subscribers, it will probably be less of a positive,” said Richard Green, CEO of Gartner.
“We are concerned about that because it is very clear that it is a business where we are not growing as fast as we would like.
The number of subscribers is the key metric.”
The rapid growth of the video subscription market is a major factor in Apple’s recent decision to expand its video streaming business, with revenue up by about $20 billion last year to $9.5 billion.
The company’s revenue is expected to grow by roughly the same amount this year, though that increase will be due to new customers that subscribe to the service.
In recent months, the company and its content partners have been trying to capitalize on Snapchat’s popularity among young people, who are increasingly looking for entertainment.
Snapchat’s growth has been fueled by the release of a number of movies and TV shows, including The Muppets, and by the launch of Apple TV, which will stream videos to Apple devices.
The growth in the video streaming market has been especially impressive given that Apple has struggled to gain traction with its original content, according a new report from Digital Trends.
Snapchat is one of the few video-on-demand services that has not been negatively affected by Apple’s strategy of releasing more original content on the platform.
“The trend of Snapchat users switching to Apple TV over Apple TV is not only helping the company get more subscribers but also allowing it to expand more of its video content offerings, potentially even more than the service itself,” Digital Trends wrote.
“This will make it easier for Apple to sell more Apple TV sets, which is a huge plus for Apple.”
In addition to growing its video subscription service, Apple has also been expanding its distribution deals with major media companies, including HBO, Viacom, Comcast, NBCUniversal and Sony.
The distribution deals allow Apple to offer its content directly to consumers in the U.S. through these companies’ subscription service offerings, allowing it more direct distribution to consumers, and potentially lowering the barriers to entry for the content providers that make their products available to consumers.