November 15, 2019
An Apple bundle with Apple TV+, music and news may be on the way
With its new Apple TV+ streaming service just getting off the ground, and fresh competition coming from this week's debut of Disney+, Apple is reportedly considering selling a bundled package that would include its new TV offering and other subscription services.
Apple, which launched Apple TV+ on Nov. 1, is said to be looking at including the streaming TV service, Apple Music and its Apple News+ service in a bundle as part of its effort to build up its services business, which is the company's second-largest source of revenue. According to a report from Bloomberg, "people familiar with the matter" said the bundled offering could be available in early 2020.
For Apple, subscription services have taken on greater importance as sales of iPhones have begun to decline. During its fiscal fourth-quarter, which ended in September, Apple said iPhone revenue declined by more than 9% from a year ago, to $33.4 billion. However, services sales climbed by 18%, to $12.5 billion.
As part of its effort to build its Apple TV+ subscriber base, Apple is charging just $4.99 a month for the service, and also offering a free year's-worth of Apple TV+ to customers who buy a new iPhone or other hardware products.
An Apple spokesperson said the company had no comment on the matter.
Should Apple offer a bundle of subscription services, it would be taking a page from Disney. In addition to offering Disney+ for $6.99 a month, or $69.99 for an entire year, Disney is also bundling Disney+ in a package with Hulu and ESPN+ for $12.99 a month.
If it wants to compete and lure new customers, Apple could end up having to make some price adjustments to any bundle it might offer. In addition to the $4.99 a month it charges for Apple TV+, the company also charges $9.99 a month each for Apple Music and Apple News+.
Disney also sought to show how popular Disney+ was right out of the gate when on Wednesday it said it signed up 10 million Disney+ subscribers on Nov. 12, the day the service went live. Apple doesn't disclose subscriber numbers for its various services.
©2019 The Mercury News (San Jose, Calif.)
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