Apple Inc. is preparing a series of packages that will allow customers to subscribe to various digital services of the company at a lower monthly price, according to people with knowledge of the effort.
The packages, called “Apple One”; in Cupertino, the California-based technology giant, are expected from October, along with the the next iPhone, people said. The packages are designed to encourage customers to subscribe to more Apple services, which will generate more recurring revenue.
According to people, there will be different levels who asked not to be identified discussing private plans. A basic package will include Apple Music and Apple TV +, while a more expensive variation will have these two services and the Apple Arcade gaming service. At the next level will be added Apple News +, followed by a more expensive package with extra storage of and iCloud for files and photos.
Apple’s plans and package structure may change. But the goal is to offer groups of services at lower prices than would be charged if consumers subscribed to each offer individually. An Apple spokesman declined to comment.
The initiative is a major commitment by Apple to achieve the same loyalty as Amazon.com Inc. has won with its Prime program, which combines free shipping with video streaming and many other services for an annual or monthly fee. This package is the foundation of Amazon’s success and has been mimicked by other companies before with diverse results.
Apple doesn’t have any e-commerce warehouse and distribution network like Amazon, but it has hundreds of millions of ardent hardware customers who have already hosted some of its digital subscriptions. The iPhone and iPad will suggest different packages to users depending on the Apple applications and services they already use. This feature will come later this year as part of iOS 14, the next software update for Apple devices.
The company is also developing a new subscription for virtual fitness classes that can be used through an app for iPhone, iPad and Apple TV, people said. This service will be offered in a superior package with other Apple services. Codenamed “Seymour”, the training package would rival the virtual classes offered by companies Peloton Interactive Inc. i According to Nike, according to people.
The new packages will be family-oriented, meaning they will work with Apple’s family-sharing system that allows access to six people for each service. The deals are designed to save consumers about $ 2 to $ 5 more per month, depending on the package chosen. For example, if a family subscribes to all of Apple’s top services today, plus the highest level of iCloud storage, that would cost about $ 45 a month. A new package could remove more than $ 5.
Wall Street, which is likely to be applauded by Wall Street, which wants companies to generate reliable revenue streams. However, there is also the risk of confusing consumers with various subscription options. This made it difficult to launch the HBO Max streaming service, which was introduced this year along with existing HBO Go and HBO Now offerings.
Peter Stern, a senior lieutenant for Apple’s chief of staff Eddy Cue, is leading the initiative. Bloomberg News reported last year that Apple was aimed at launching packages in 2020.
Initially, Apple does not plan to integrate packages with services such as AppleCare support or monthly payment plans for hardware such as the iPhone or Mac. Earlier this year, as part of the Apple Card, Apple started offers monthly interest-free payments for several of your devices.
In addition to service packages, Apple is planning new software and hardware packages, including offering Apple TV box buyers a free year of Apple Arcade. This would follow a year of free TV + offered to buyers of new Apple devices.
Read more: Apple cancels arcade games on strategy channels to keep subscribers
apple Last year it tested the waters with a subscription package, offering students free access to TV + with an Apple Music subscription, though it has never confirmed plans for a comprehensive package for all of its music services. main payment.
The company However, he noted the possibility when he included a provision on deals with publishers participating in News + that said the service could be included with other services.
For years, analysts and investors have been calling for Apple to mimic Amazon’s Prime approach. Some of Apple’s newest services, including News + and TV +, have started slowly. By grouping them at a discount with more popular services, they could increase their usage and subscriptions.
Read more: Apple’s new services got off to a good start in the first year
Apple’s service segment is one of the company’s fastest growing areas and has become a $ 50 billion a year business. While services such as advertising and AppleCare declined in recent quarters due to the impact of Covid-19, digital offerings such as the App Store, iCloud and video products set records.