Apple is looking to transition into a Services company. A year ago, the company only offered Apple Music but now, it has Apple Arcade, Apple TV+, and Apple News. To streamline the process of subscribing to all of its services at once for a flat monthly fee, Apple has been working on a “super-bundle.”
However, Apple’s super-bundle is running into opposition from the music industry. While many record labels are exploring this idea, others are concerned about the pricing and their relationship with Apple. The labels are worried that they will end up getting paid a lower amount for their music.
The iPhone maker has recently approached the big music companies about bundling together Apple Music and Apple’s upcoming television service, but the two sides have not yet discussed a pricing formula, said people familiar with the negotiations. Talks are at an early stage, they added.
Usually, when a company offers a bundle, it offers it at a slightly lower price than the combined individual price of the services. For example, Apple Music costs $9.99/month and Apple TV+ will cost $4.99/month which comes to $15/month. If Apple ends up offering a bundle for $14.99/month, it won’t really make much sense and fail to attract new subscribers. For the bundle to be successful, Apple needs to price it slightly lower at around $12.99/month or $13.99/month. Record labels fear that this lower price of the bundle would mean that they would get paid less by Apple.
The company could also offer several tiers of such a super-bundle, with higher tiers offering access to Apple Arcade and Apple News. Such a move will definitely make things more convenient for users looking to subscribe to various services offered by Apple, and it could also help get more people onboard various services that Apple offers.[Via Financial Times]