From Nasdaq: 2025-03-06 08:43:00

Subscription-based services provide companies with stable revenue streams, exemplified by Apple’s Services segment growth from $78.1 billion in 2022 to $96.2 billion in 2024. Apple’s high gross margins of 73.9% in Services outperform the 37.2% in hardware sales, contributing significantly to overall profitability.

Netflix and Sony thrive in the subscription economy, with Netflix reporting $10.25 billion in Q4 2024 revenues, while Sony’s PlayStation Plus saw a 20% revenue increase. Both companies benefit from integrations with Apple, expanding their reach and driving industry growth in digital entertainment subscriptions.

Netflix and Sony’s connection to Apple’s growth in services is influenced by the seamless access provided by Apple’s ecosystem. Cross-platform collaborations between Apple, Netflix, and Sony enhance user experiences and drive the expansion of subscription-based services in the digital entertainment market.

Subscription models drive future growth in high-margin businesses like Netflix and Sony, appealing to consumers shifting towards digital entertainment and cloud-based services. Both companies have favorable Zacks Ranks, indicating potential growth opportunities in the subscription economy. Take advantage of Zacks’ portfolio services for $1 to explore investment opportunities.



Read more at Nasdaq: Why Now is the Best Time to Invest in Netflix & Sony Stocks