Apple Could Bundle Its Media Offerings into One Subscription



A new bundle for Apple?

Apple (AAPL) has signed deals with several high-profile actors and producers to boost its content subscription. Until now, the tech giant hasn’t disclosed how it plans to distribute its content. According to a June 27 report by The Information, Apple could bundle all its media offerings into one subscription.

Apple’s current media subscription, Apple Music, currently has more than 40.0 million subscribers. This is second to Spotify (SPOT), which has ~75.0 million paid subscribers.

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Bundling its services into one subscription could reduce Apple’s attrition rate

Music and video content could be accessible through Apple’s TV app on the user’s iPhone, iPad, or Apple TV. Another of Apple’s media offerings is Texture, which it acquired in March. Texture allows subscribers to download magazine content.

Bundling those services could be beneficial to Apple, as users would be less likely to opt out of those services—even if they don’t use all the services. In our view, Apple could compete more effectively with Netflix’s (NFLX) video streaming service if it made this content available to Android users.


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