Apple preparing subscription service similar to Amazon Prime

Posted On June 29, 2018 at 1:59 pm by / No Comments

Apple seems to be taking cues from one of Amazon’s flagship offerings. The company plans launching a subscription offer bundling up access to a music streaming service, an original TV series and digital newspapers. Cupertino’s plans were reported by The Information but no official confirmation has been received from the company.

The idea seems very similar to the Amazon Prime principle that offers access to a streaming music service, movies and original series plus one-day delivery for purchases on Amazon for a single subscription fee of 49 euro per year.

Apple can differentiate itself by emphasizing the variety of its entertainment offerings that probably won’t be limited only to music and video. Such an offer would be a powerful lever to keep consumers in Apple ecosystem. No other brand is so successful in encouraging customers to own several of its interconnected devices: iPhone, iPad, Apple TV, Mac etc. Once immersed in this hardware and software ecosystem, it is more difficult for users to migrate to a competing platforms such as Android or Windows. Such package would probably strengthen this integration even further.

According to The Information, Apple will launch the bundle somewhere next year with the launch of a new digital press subscription combining the Apple News with Texture, a digital kiosk that the company acquired in March, which offers unlimited access to various publications. Then, this subscription would be joined by a future VoD service and Apple Music which has 40 million paying subscribers just three years after its launch.

The subscription bundle is relatively new concept for Apple. The brand has long resisted music streaming as iTunes download sales flourished. But times have changed. Streaming has become the main way to consume music and Apple has adapted accordingly.

For its part, Amazon has benefited greatly from its bundled subscription. In April, company CEO Jeff Bezos said Amazon Prime has 100 million subscribers around the world.