Apple At Advantage: Apple is best positioned to grow its streaming revenue share from the current 2%, Munster said. The company can splurge on content with its annual operating profit of over $100 billion, he said.

“This gives them an advantage in Hollywood development deals and attracting top-tier talent,” the venture capitalist said.

Going by the user interface, Cupertino may be the only streaming service that can run ad-free in the long term, Munster pointed out. With other streaming services either already offering or contemplating ad-supported options, this can become a selling point for Apple TV+, he added.

See also: The State Of Streaming In 2022: The Search For New Content, New Revenue On Netflix, Disney+ And More

The only downside Munster sees for Apple TV+ is that its library isn’t filled enough to compete with the likes of Netflix, Inc. (NASDAQ:NFLX), Disney’s Hulu and Warner Bros.’s HBO Max.

“In the end, we believe quality will win over quantity,” Munster said.

Competition Heating Up But Only Slightly: Despite streaming services cribbing about increased competition, Netflix, which has been the biggest underperformer, has lost only two points of market share in 2022, Munster noted. Apple TV+, HBO Max, Disney+ and Amazon Prime have each gained a 1% market share, he said.

At the end of the June quarter, the market share for Netflix stood at 21% compared to 20% for Prime Video, 15% for HBO Max, 14% for Disney+ and about 2% for Apple, Munster noted.

“Streaming is a profitable ancillary business alongside the revenue of Amazon’s retail store, Disney’s parks and merchandise, and Apple’s iPhone,” Munster said.