Apple is reported to be close to unveiling a series of bundles for the company’s various services such as Apple TV+, Apple Music, Apple News+, Apple Arcade, iCloud storage, etc.
By offering bundles of those services to consumers, Apple has the potential to improve a key metric used by most subscription services companies: customer lifetime value.
One of the simplest ways to increase customer lifetime value is improved retention and higher attach rates.
Apple has over 60 million Apple Music subscribers. But it only has about 10 million active accounts for Apple TV+ (still on free trials), and Apple Arcade’s expected to reach 12 million subscribers by year-end.
Bundled pricing should raise attach rates for the services while increasing the stickiness of those customers since they don’t want to lose their preferred pricing.
A bundle of Apple TV+ or Apple Arcade with Apple Music could expand the subscriber base for all three services. It would help Apple differentiate its music-streaming service from competitors like Spotify… [and] it would introduce Apple TV+ and Apple Arcade to more customers.
MacDailyNews Take: Plus the services also sell hardware. Apple TV+ and Apple Arcade helps move Apple TV boxes, Apple Music sells AirPods and HomePods, and Apple’s forthcoming “Apple Fitness” service will sell even more Apple Watches.
Plus, “Apple Fitness” will keep subscribers alive and paying longer. 😉
The unmatched Apple ecosystem feeds and drives itself; it’s a perpetual money machine!