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 an 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” subscription 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.