NBCUniversal Content to Boost Apple's TV+ Business: What's Ahead?

Apple AAPL and NBCUniversal are set to introduce the Apple TV and Peacock bundle from Oct. 20. U.S.-based subscribers will be able to watch shows from both platforms — Apple TV+ and Peacock — including Ted Lasso, Severance, The Paper, The Traitors, How to Train Your Dragon, the NBA (beginning Oct. 21 on Peacock), F1 The Movie (Dec. 12) and much more. 

The deal bodes well for both Apple’s streaming business, Apple TV+ and NBCUniversal. Apple TV+ is particularly benefiting from a strong content portfolio with the service winning 22 Emmys at the 77th Primetime Emmy Awards, best-ever in Apple TV+’s history, driven by The Studio, Severance, and Slow Horses. Apple has a strong lineup of content, including new shows like The Savant and Pluribus and new seasons of Ted Lasso and Drops of God. 

Apple TV and Peacock Premium bundle is available for $14.99 per month, while Apple TV and Peacock Premium Plus is priced at $19.99 per month. 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 $28.03 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. The launch of the standalone ESPN DTC service on Aug. 21, 2025, marks a major milestone in repositioning Disney’s ESPN as a fully digital sports powerhouse.

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.

AAPL’s Share Price Performance, Valuation & Estimates

Apple shares have dropped 1.1% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 22.9%.

Apple Stock Lags Sector

The AAPL stock is trading at a premium, with a forward 12-month price/earnings of 31.38X compared with the broader sector’s 29.19X. AAPL has a Value Score of D.

AAPL Stock is Overvalued

The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $7.36 per share, down by a penny over the past 30 days, suggesting 9% growth from fiscal 2024’s reported figure. The consensus mark for fiscal 2026 earnings is pegged at $7.85 per share, up 3 cents over the past 30 days, suggesting 6.6% growth from fiscal 2025’s estimated figure.
 

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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