Mike Wuerthele
A new report claims that Apple is telling media publishers that it may bundle services if it so chooses — which could potentially cut back on what is being paid out.
A report on Thursday claims that Apple is including a section in deals signed, telling publishers that it reserves the right to bundle services in the future. Sources familiar with the matter say that Apple may roll out these bundles in 2020, in an attempt to get more people to subscribe.
This is not the first time that this has been said. Most recently, in October, Apple was reportedly in the early stages of discussing an all-encompassing bundle for users, placing all of Apple's services like Apple Music and Apple TV+ under one payment. But, a long-time partner and foe, sometimes simultaneously, is reportedly having some issues with Apple's terms.
Some music executives from companies that Apple has had a tumultuous relationship since the dawn of the iTunes Music Store are said to be concerned about margins, should Apple bundle its services in one offering. As is typical with Apple's dealings with the music industry over the years, Apple's plan isn't being universally panned — some executives are reportedly on-board with an omnibus offer.
Reports that Apple was considering a large bundle started surfacing in June 2018. At the time, it was disclosed that Apple was evaluating delivering a comprehensive subscription service that would rival similar plans marketed by Amazon and, to some extent, Netflix.
Apple's revenue from Services is becoming a more important source of earnings for Apple. The company presently makes money from media with Apple Music at $9.99 per month for a individual subscription, Apple News also for $9.99 a month, and Apple Arcade at $4.99 per month.
Another part of what would be included in an "all-Apple" subscriptions bundle is Apple TV+. Apple's streaming video service consists of all-unique content, and debuted on November 1. Purchasers of new Apple hardware releases after September 10 get a year of Apple TV+ service for free.
A monthly subscription for all of Apple's digital services, AppleCare, and an iPhone would cost about $100 per month.
The report by Bloomberg on Thursday morning also notes that media companies can pull content from Apple News+ after a year, if they are dissatisfied with revenue. For early participants, that year is coming up in March 2020.
Andrew Orr
William Gallagher
Christine McKee
AppleInsider Staff
Chip Loder
13 Comments
Any one who thought Apple wasn't going to bundle services at some point hasn't been paying attention.
The sooner the better, I think some of these services like News + should be included when you sign up for the higher storage levels of iCloud.
there was an editorial here not long back that made the case for a bundle that would include a new phone as well. Looks like that's exactly the direction it's heading.
It occurs to me that the time and technology is now perfect to resurrect the original MTV model. Remember when every band had to make music videos too? Apple with its love of music and now video production would be the perfect platform. Watching your favorite band perform in a music video back in the day was 'magical'. "Money for Nothing and your kicks for free" indeed. With all the latest ability to create playlists, sort and shuffle ... it would be 'amazing'. A remake of Robert Palmer's infamous videos in 4K would be 'Simply Irresistible' ;). Probably too politically incorrect now :(
I'd go one step more, Tim should look into acquiring the rights to the entire MTV catalog from Viacom (I think that's who owns them, I could be wrong) so as to provide an archive of on demand Baby Boomer material albeit only low resolution. Hey, even talk to the BBC about all the Top Of The Pops archives.