Diversification is key, even at Apple Inc. (AAPL) - Get Report .

While the company's ubiquitous iPhone is clearly its bread and butter, Apple has opportunities to bolster its bottom line through its services businesses, specifically content creation, according to an RBC Capital Markets research note on Monday, June 25. 

"AAPL will further differentiate their services offering by enhancing original media content and increase the stickiness of their install base. AAPL will fixate on quality vs. quantity, but original content will differentiate its offering and enable AAPL to bundle music+content for a higher average selling price," analyst Amit Daryanani wrote. 

Daryanani pointed out recent deals the company has signed with Oprah Winfrey and Sesame Workshop as examples of the company's interest in moving into the entertainment field and challenging Netflix (NFLX) - Get Report

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Apple has a $1 billion budget for content acquisition and production in 2018, according to RBC, which it has spent on projects from Steven Spielberg, Jennifer Aniston and Reese Witherspoon.

Outside of television and movie production, the company also has a burgeoning music business.  

RBC estimated that Apple has between 40 million and 42 million paid Apple Music subscribers with a path to 100 million subscribers within the next three years if the company can maintain the 2 million monthly subscriber additions it has generated recently. 

RBC said it believes a combination of Apple Music subscribers and monetizing original content could represent a $10 billion to $12 billion annual run-rate business which would contribute between 25 cents and 75 cents to the company's earnings per share. 

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