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Apple's Long-Rumored Digital Bundle Could Hit Next Year

By Danny Vena - Nov 18, 2019 at 12:00PM

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Consumers may get a trifecta of services from the iPhone maker for one low price.

Even before Apple ( AAPL 3.16% ) confirmed its entry into the streaming video market, rumors regarding everything from price to content offerings ran rampant. Even analysts got in on the game, trying to compute just how much such an offering would mean to the Cupertino company's revenue. Another popular area of conjecture late last year was whether Apple would release a bundle that would include streaming video, news, and music -- even before these services debuted.

Apple is apparently ready to bow to public pressure. The iPhone maker is said to be considering a hefty services bundle that could debut as early as next year.

Reese Witherspoon and Jennifer Aniston on stage with the Apple TV+ logo and their photo projected on a screen behind them

Reese Witherspoon and Jennifer Aniston on stage at Apple's keynote event. Image source: Apple.

Everything an Apple fan could want

Apple is contemplating a package that would bundle the company's three most high-profile services. The deal would include Apple TV+, Apple Music, and Apple News+ at a discounted price, according to a report by Bloomberg. Apple is considering the move in a bid to boost its subscriber numbers. 

The report cites evidence that suggests Apple may even have planned this move all along. The company included terms in its contracts with publishers that would allow Apple to bundle News+ with its other paid digital services.

That's not all. Apple is thought to be considering a plan that would include an iPhone and some of its digital services all for one monthly subscription price.

Apple's not the only one

While it's not an apples-to-apples comparison, the iPhone maker isn't the only one trying to attract consumers by providing several of its offerings at a discounted price. Earlier this week, Disney ( DIS -1.97% ) launched its much-ballyhooed streaming service, Disney+, quickly attracting more than 10 million subscribers.

Part of the strategy employed by the House of Mouse was providing deep discounts to its most fervent fans, but the company also offered consumers a bundle that included Disney+, Hulu's ad-supported service, and ESPN+ for a low monthly package price of $12.99 -- a savings of about $5 per month. Disney went further, offering Hulu Premium subscribers ($11.99 per month) a workaround that lets them adds Disney+ and ESPN+ and still get a $6 monthly discount. 

A leg up for Apple TV+?

Apple may have come to the realization that subscribers may need additional incentive to sign up for Apple TV+. The streaming service debuted on Nov. 1 to lukewarm reviews, with some questioning whether the service could hold its own against the likes of Netflix ( NFLX -3.31% ) or Disney. Apple TV+ -- which costs $4.99 per month -- currently only offers about a dozen programs in all, which pales in comparison to its rivals.

Disney said earlier this year that it planned to launch Disney+ with 7,500 television episodes and over 500 movies, as well as a number of new and exclusive series and films. Some estimates put the size of Netflix's catalog at more than 13,000 titles worldwide early last year, though the company hasn't publicly spoken about the size of its library. This is understandable given that Netflix operates in more than 190 countries worldwide, and the number of programs varies by country due to licensing agreements.

Both numbers make Apple's catalog seem positively dismal by comparison. By bundling Apple TV+ with other services, the tech giant may be able to boost its subscriber numbers while it builds out its content library.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Apple Inc. Stock Quote
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The Walt Disney Company Stock Quote
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Netflix, Inc. Stock Quote
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