JOINING THE SUBSCRIPTION BANDWAGON, APPLE LAUNCHED APPLE ONE: AN APP BUNDLING ALL THEIR SERVICES. HERE'S HOW.
When Steve Jobs brought iTunes to the world in 2003. it saved a flailing music industry from the demons of Napster & other pirated sites. At a fair price of a dollar a song, listeners found a legal & cost-effective way to sway to the music of their favorite stars. The label companies and the stars got their fair share of revenue, a reasonable & affordable price point was set for the consumers & Apple roped in millions of dollars through iTunes.
Right now in the weirdly wacky year of 2020, business paradigms have changed substantially. The entry & establishment of services like Spotify & Netflix have given the rise to a model of subscription for digital content. These days, every major tech company is offering some service or the other through this model. Some notable examples are listed below:
Amazon Prime
Google Photos
Microsoft Azure
Apple One
Adobe Creative Cloud
One thing is clear: Every tech company has its eggs in the subscription basket. And Apple has now entered the fray with all guns blazing. Let's analyze their prospects:
UNDERSTANDING APPLE ONE
In a nutshell, Apple One has bundled together all of its subscriptions under this one plan. As of now, it includes iCloud, Apple Music, Apple TV+ & Apple Arcade. However, it is planning to launch Apple Fitness+ & Apple News later this year.
It has also devised a very aggressive pricing policy in lucrative markets like India & the USA to attract more users. In India, the price is a measly Rs. 195 a month & a modest USD 15 a month (at least according to Apple standards!)
Apple Music is replicating the streaming model pioneered by Spotify. It will continue its iTunes sojourn as a separate entity. However, users of iTunes can listen to their purchased songs offline.
AppleTV+ is the company's entry into the entertainment domain. As of now, every iPhone buyer gets a one-year free Appletv+.
Apple Arcade is a new gaming subscription service that will eventually provide access to over 100 games for iPhones, iPads, Macs, and Apple TV devices.
Apple News+ will be launched later this year. It is basically a subscription service in the Apple News app that lets you access magazines and paywalled content from some news sites.
Apple Fitness+ includes personalized training recommendations and Apple Watch integration launching in fall 2020. Each recommended workout is based on your Apple Watch activity. The Fitness+ app integrates your personal metrics, like heart rate and calories you burn, into every workout in the Fitness+ app. Apple will deliver new workouts so there are always new courses to explore.
ADVANTAGE APPLE
The main advantage for Apple is that it has control over the end to end user experience. It has formed a formidable ecosystem integrating hardware (Apple Watch), software (watchOS) as well as the end service (Fitness+) now. This was envisioned by Steve Jobs in the early 2000s when he introduced the iPod to the world. He could foresee how his company could integrate these elements to give his customers a compelling & enthralling user experience so early on before these trends set in! Another advantage for Apple is its loyal consumer base. Apple already has a legion of users who can be further monetized through these subscriptions.
LATE TO THE PARTY
However, it seems like Apple is a little late in entering the emerging subscription market. Netflix, Prime & Disney have a better entertainment catalog than AppleTV+. iCloud also has stiff competition from Google Photos & Microsoft Azure. Fitness fanatics in the United States & Europe have already embraced Peleton. It remains to be seen how Apple navigates such a crowded market.
PARTING THOUGHTS
One thing is for certain: Apple will give a helluva fight. Apple is known to enter new markets & completely revamp and redefine it in their favor. Think of countless of its innovations like the iPhone, iPod, iTunes, iOS & even the AppStore. This renewed approach can also generate a more recurring & constant revenue stream for the already cash-rich tech giant. The company has the potential as well as the resources to change the landscape of this market. After all, the rebellious spirit of the late Steve Jobs still resides within his beloved company!
THANKS GUYS FOR READING. THIS WAS IN THE MAKING FOR QUITE A WHILE.
If you like Steve, I would highly recommend this great book:
Also if you are intrigued by the corporate battle between the various streaming giants like Netflix, Prime, Disney & other major players, be sure check this sizzling piece: