Apple Worries Music Execs With Potential Apple TV+ and Apple Music Bundle
With Apple TV+ launching in less than a month, Apple execs are looking into ways they can bundle the upcoming service with Apple Music. According to the Financial Times, Apple has began approaching some music label heads and has been met with some trepidation.
Though Apple will continue to license music rights from record labels, it owns all content on Apple TV+ and won’t have to split its revenue and music labels are apprehensive because if the tech giant offers Apple Music at a lower price, their bottom line will suffer, FT reports. Apple could potentially combine Apple TV+ with Apple Music, News+, Arcade and AppleCare+ into one mega-bundle. At this point, neither side has come forward with a pricing formula.
It makes sense that Apple will be looking into bundling their services. In August, their competitor Disney announced a $12.99 bundle for Disney+, Hulu, and ESPN+. Apple, which sees a whopping 420 million people subscribing to one of its services a year is offering Apple TV+ for free for a year for new buyers of iPhones, iPads and Macs. Since, according to the Financial Times, Apple is more concerned with “building a huge number of subscribers than short-term profit,” those people could easily convert to using Apple TV+ simply because of the brand association.