Apple's TV+ Business Gets a Boost With 22 Emmy Wins: What's Ahead?

Apple’s AAPL streaming business, Apple TV+, is benefiting from a strong content portfolio. The service won 22 Emmys at the 77th Primetime Emmy Awards, best-ever in Apple TV+’s history, driven by The Studio, Severance, and Slow Horses. Apple TV+ has achieved a record-breaking 81 Emmy nominations this year, spanning 14 original titles.

Seth Rogan starring The Studio became the most-winning freshman comedy in history with 13 wins overall. The second season of Severance won eight, including Outstanding Lead Actress (Britt Lower) and Outstanding Supporting Actor (Tramell Tillman). Slow Horses’ fourth season won for Outstanding Directing for a Drama.

Apple has a strong lineup of content, including a new season of Slow Horses and The Morning Show, respectively, along with new shows, including Pluribus. Movie slate includes The Lost Bus and F1 The Movie, per report from 9TO5Mac. 

Apple recently raised the Apple TV+ monthly subscription to $12.99. Revenues from Apple TV+ are reported under Apple’s Services business, which accounted for 29.2% of third-quarter fiscal 2025 sales. Services revenues grew 13.3% year over year to $27.42 billion, with both paid accounts and paid subscriptions growing double digits year over year. Apple TV+ viewership soared double-digit year over year in the fiscal third quarter.

The Zacks Consensus Estimate for Services sales is pegged at $28.04 billion, indicating 12.3% growth from the figure reported in the year-ago quarter.

Apple Faces Tough Competition in Streaming Market

AAPL is facing stiff competition from the likes of Disney DIS and Netflix NFLX in the streaming space. Disney’s streaming services — Disney+ and Hulu — now reach 183 million subscribers. Backed by marquee sports rights, including the NFL and WWE, initiatives like merging Hulu with Disney+ and launching a standalone ESPN streaming service in the fall of 2025 are designed to drive average revenue per user and long-term retention. Disney projects $1.3 billion in Direct-to-Consumer operating income for fiscal 2025, indicating a more than 800% year-over-year upsurge.

Netflix has set an ambitious target to double its revenues by 2030 and reach a $1 trillion market capitalization, supported by a diversified content strategy, including international programming, live events, and gaming initiatives. The 2025 content slate, with returning hit shows like Squid Game, Wednesday and Stranger Things, holds promise. Netflix is making significant investments in localized content and creative talent. It has committed $2.5 billion to expand Korean content by 2027 and allocated $18 billion in 2025 for India alone, supporting a slate of 28 originals.

AAPL’s Share Price Performance, Valuation & Estimates

Apple shares have dropped 6.5% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 18.8%.

Apple Stock’s Performance

The AAPL stock is trading at a premium, with a forward 12-month Price/Earnings of 30.02X compared with the broader sector’s 28.69X. AAPL has a Value Score of D.

AAPL Valuation

The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $7.36 per share, up 3 cents over the past 30 days, suggesting 9% year-over-year growth.
 

Apple Inc. Price and Consensus

Apple Inc. price-consensus-chart | Apple Inc. Quote

Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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