Apple (AAPL) has done a pretty good job of positioning two of its new Apple One services plans -- the $14.95/month Individual plan and the $19.95/month Family plan -- as compelling options for Apple Music subscribers who like at least one of Apple's two other subscription content services.
Both plans bundle Apple Music, Apple TV+, Apple Arcade and iCloud storage, with the Family plan supporting up to six household members and providing 200GB of storage (as opposed to 50GB for the Individual plan). If bought piecemeal, the services provided by the Individual plan would currently cost $21/month, while the services provided by the Family plan would cost $28/month.
The $29.95/month Premier plan -- it covers entire families as well, while also bundling 2TB of storage and Apple's News+ and Fitness+ services -- provides a healthy $25/month discount relative to the cost of buying all of its services piecemeal. But admittedly, one needs to be a fan of several of Apple's subscription services to justify the cost.
On the other hand, the sales pitch for the Individual and Family plans to Apple Music subs who have a household member or two who likes Apple TV+ and/or Arcade is pretty simple: For the current cost of getting Apple Music and either TV+ or Arcade, you can get a bundle that also includes a couple other paid services.
As I previously mentioned, the low marginal costs of TV+ and Arcade give Apple some flexibility here. Since Apple pays for the content provided by each service up-front (as opposed to incurring per-subscriber content expenses, as it does with Apple Music and News+), the cost of supporting additional subs is fairly low. And that in turn lets Apple be aggressive in terms of how it bundles these services with other offerings.
Apple had more than 60 million Apple Music subs as of June 2019, and might have more than 70 million now. As a result, there's a substantial base of users for whom the aforementioned sales pitch could be appealing.
The bundles will often be a tougher sell for consumers who are satisfied subscribers of a rival music service such as Spotify (SPOT) , YouTube Premium or Amazon Music Unlimited, since there are meaningful switching costs to replacing one music service that a user has built up a large library on with another. But with Apple providing 30-day free trials for any services within an Apple One bundle that a user doesn't already have, it's possible that Apple could still gain some converts among users of rival music services who also happen to like TV+ or Arcade.
Apple is likely far from finished when it comes to fleshing out its services bundling strategy. Given past comments Tim Cook has made that suggest Apple is at least considering such a move, as well as the solid arguments that others have made in favor of it, it might only be a matter of time before we see the launch of bundles that pair Apple services (including AppleCare, which isn't a part of the Apple One bundles) with hardware upgrades at fixed intervals.
Such offerings could have a bigger financial impact than Apple One -- both in terms of increasing the lifetime revenue that Apple gets from users, as well as boosting customer loyalty and increasing the predictability of future revenue.
Apple One isn't a bad initial effort, however, and should provide some lift to Apple's Services revenue in the upcoming quarters.