Today in the Connected Economy: Apple Headed to $8B in Gaming, Music

Today in the connected economy, new research shows Apple’s music and gaming sales could top $8 billion by 2025.

Also, Amazon chooses a California town to test its Prime Air drone deliveries, and buy now, pay later (BNPL) provider Affirm partners with travel website Agoda.

Apple Music, Gaming Could Generate $8.2B by 2025

Revenue from Apple’s music and gaming-related sales could reach $8.2 billion by 2025, according to new research by analysts from JPMorgan.

That figure, which represents a 36% increase, would be driven by a subscriber base of around 180 million people — 70 million in gaming and 110 million in music.

About $7 billion of that revenue would come from Apple Music, with the rest arriving from Apple Arcade, the gaming subscription service that debuted in 2019.

Apple does not give a sales breakdown for gaming and music services, it reported $19.8 billion in revenue for the quarter ending in March.

Amazon to Test Prime Air Deliveries in California

Amazon has picked the residents of the California town of Lockeford to be among the first customers to receive drone deliveries via its Prime Air service.

“Lockeford has historic links to the aviation industry,” the retail giant said in its announcement. “The community boasts one of the early pioneers of aviation — Weldon B. Cooke, who built and flew early planes in the early 1900s — as a former resident. Now, over a century later, residents will get the opportunity to sign up for free drone delivery on thousands of everyday items.”

Amazon said it will use feedback from residents about the delivery service to help determine the future of Prime Air. The company said the launch also comes with an investment in Lockeford, including the creation of new jobs as well as partnerships with community groups.

Affirm, Agoda to Provide BNPL Travel Booking

Approved travelers reserving hotel stays on the Agoda platform will receive a buy now, pay later option from BNPL provider Affirm under a new arrangement between the companies.

For hotel stays of $50 or more, guests will get the option of making interest-free payments every two weeks or once a month through Affirm’s Adaptive Checkout.

“The launch of pay-over-time options with Affirm will enable travelers in North America who might have previously found it inconvenient to pay for their booking in one lump sum to spread the costs over multiple payments without incurring any compound interest or additional costs,” Agoda Chief Financial Officer Thi-Mai-Linh Bui said.

Virgin Money Teams With SurePay on CoP Solution

Payment information company SurePay has joined forces with Virgin Money to help the company use its U.K. Confirmation of Payee (CoP) solution to protect users against fraud and misdirected payments.

The companies said the solution lets consumers know their payments are reaching the intended recipient, rather than being mistakenly or deliberately rerouted. SurePay said its algorithm is built for CoP and operates according to U.K.’s payment guidelines.

“We are committed to protecting our customers from fraud, and Confirmation of Payee is a valuable tool in achieving that,” said Fergus Murphy, Virgin Money’s chief customer experience officer.