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Should Apple Introduce a $50 per month ‘Apple Prime’ Subscription?

Should Apple Introduce a $50 per month ‘Apple Prime’ Subscription?

While Wall Street bears are betting Apple’s value to investors will decline, two analysts say they have an idea the could “re-energize” Apple. In a lengthy report on Monday, Goldman Sachs analysts Simona Jankowski and Drew Borst proposed the Cupertino tech company create an “Apple Prime” subscription bundle of hardware and software.

Should Apple Introduce a $50 per month 'Apple Prime' Subscription?

Fortune:

The theoretical bundle would cost $50 per month and include an iPhone and an Apple TV, with subscribers getting new hardware when Apple issues updates. […] On the content side, the offering could include the Apple Music service, access to the iTunes library of TV shows and movies (some for free), Apple’s forthcoming original content, and sports, the analysts said.

“We believe the shift to this model would drive increased consumption of hardware (iPhone and Apple TV) on increased customer loyalty, with increased monetization of services and content, and investors would have increased visibility on revenues,” wrote Jankowski and Borst.

While such a bundle could appeal to the growing numbers of “cord cutters” who are looking to drop their cable television subscriptions, and would be attractive to users who are becoming less willing to pay for downloading music and video content, such a move would be expensive for the firm, and would require extensive renegotiation of current content licensing deals.

Apple was long-rumored to have been creating its own streaming video content service, offering a “skinny” bundle of popular television networks, but had trouble getting studios and networks to go along for the ride at an acceptable tariff.

Jankowski and Borst says Apple could partner with Disney to offer content from its popular stable of networks and movie content, but that would likely require them to charge more than $50 for any “Apple Prime” package they would offer containing Disney content. Another approach would be to offer “Apple-Only” exclusives, such as movies and concerts, which would show exclusively via Apple’s service, long before they would appear on other services.

What’s your opinion? Should Apple explore such a service? Would you pay $50 per month for access to video and music content, along with updates to all of your Apple devices when they become available? Let us know your thoughts in the Comments section below.

  1. i1dr says:

    I dropped Adobe due to their steering us towards subscriptions, and would move fully to linux after being with Apple since December 1986. Analysts are best ignored, since they don’t seem to remember their horrid past predictions. Every time Apple has done something new, these geniuses crowed how the sky is going to fall. Please give your advice to Dell, so they can continue to innovate like all the other PC makers.

  2. puggsly says:

    Pricing doesn’t sound likely. The current $650 iPhone with AppleCare is about $30/month and the appleTV is probably about $5. Say Apple music is only $5/month and we are down to $10/month for content. Do you think apple can make a compelling competitor to Netflix for $10/month? If they could, why haven’t they?
    The question is how much would you pay for access to the entire iTunes TV library. $40/month $60? How much would it add to get their movie collection? another $20? $40? I’ve asked myself this question and the number starts to get very high, because it is access to everything except sports without commercials.
    If you just do it based on existing systems that don’t give you all that. Your are looking at Netflix, Hulu, CBS all access, and HBO costing $40/months and having no where near the full catalog of iTunes. Now the worry is that once this was made available that networks and studios would hold things back but for now it would be an easy sell to me for $60/month, without hardware.

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