Bundle

Apple might be bundling its subscription services (plus, some Fortnite drama)

Snacks / Thursday, August 13, 2020

Like apples in a basket... Apple doesn't want its services to hang alone anymore. The Fruit is reportedly launching subscription bundles along with its new iPhones in October. For consumers, a bundle costs less than subscribing to each service individually. For Apple, bundling helps score more subscribers for its services and build Prime-style loyalty. The bundles, dubbed "Apple One," will be offered at different price tiers (we named them):

  • Basic: Includes Apple Music and Apple TV+ (so you can watch that one Jen Aniston show).
  • Less Basic: Apple Music, Apple TV+, and Apple's Arcade gaming service (who is she?).
  • Baller: All the above, plus Apple News+ and extra iCloud storage. "Baller bundles" will also reportedly include a new fitness service with virtual classes.

Excellent timing... Apple's probably relieved that this news didn't spill before the big antitrust hearing. Two weeks ago, Big Tech CEOs got grilled by Congress while trying to prove their companies aren't giant anti-competitive monopolies. Apple's CEO Tim Cook got the fewest questions. Since then, more fuel has been added to the fire:

  • Apple just removed Fortnite from the App Store, saying it violated guidelines by adding its own in-app payment system (bypassing the 30% cut Apple takes from app purchases).
  • Now Fortnite-maker Epic Games is suing Apple โ€”ย it says the App Store is a monopoly. This isn't the 1st time Apple's getting heat for its App Store-controlling ways (it's a theme).

Bundling is a powerful strategy (that breeds lawsuits)... Big Tech can afford to bundle different services together at lower price points than competitors. Slack recently filed an antitrust complaint against Microsoft for throwing in Teams (free of extra charge) with the Office 365 subscription. Spotify, which already sued Apple for playing favorites on the App Store, could file another complaint about the Apple Music bundling. TBD if Peloton will sweat over Apple's new fitness subscription.

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