Bloomberg: Apple plans to launch a general subscription to its multimedia services in 2020
15.11.2019 0 Comments
A recent Apple report showed that the Cupertino’s plan to compensate for the drop in iPhone sales mainly due to the growth in revenue from digital services works (this business is already comparable in turnover to companies on the Fortune 70 list). To maintain momentum and make services the main driver of business growth, Apple previously launched the news service with paid Apple News + subscription, Apple Card virtual credit card, Apple Arcade gaming service and Apple TV + online cinema. Next year, Apple plans to achieve the goal of 500 million paid subscribers on all services, and it is obvious that the company does not plan to stop there, therefore, it is looking for new ways to further increase the base. It has long been rumored that Apple, following the example of many other tech giants, plans to combine several subscriptions to services in one proposal. A recent Bloomberg publication indicates that this could happen next year.
Referring to “people who are familiar with the matter,” the source claims that Apple’s recent deals with Apple News + publishers include a provision allowing for this possibility (creating bundles). Last month, messages slipped that Apple was also negotiating with the music labels about the same thing (including Apple Music in the package), however, it was said then that negotiations were at an "early stage".
In general, this was quite expected. Apple now has four major multimedia subscriptions: Apple News +, Apple TV +, Apple Music, and Apple Arcade. And most importantly, what Apple cares about now is not profit, but ensuring sustainable development and growth. To interest users, Apple has included Apple TV + in the Apple Music student subscription without changing the cost, and also gives a free annual TV + subscription to all buyers of new devices. And further combining subscriptions into one package seems to be a very reasonable move, especially given the success achieved by Amazon with Amazon Prime’s own “super-package”.
For Apple, this is just a great opportunity to draw customers into its ecosystem, thereby ensuring a stable income stream and many opportunities for growth, for example, by using different types of subscriptions. Given the existence of the iPhone Upgrade Program (buying a smartphone in a peculiar installment plan for a period of 24 months), it is logical to assume that in the future Apple may begin to offer devices by subscription. Actually, during a recent conference call on the financial results of the past quarter, Apple CEO Tim Cook allowed the possibility of launching such a service.
So far, these are all rumors, and therefore it is worth treating the data accordingly – with a fair amount of skepticism. So we'll wait until 2020, and then we'll see.