Apple has been in talks with labels about bundling Apple Music with its new TV service.
According to the FT, some music companies are nervous about the tech giant’s plans, which could potentially impact the perceived value of music and even drive down prices at a time when subscriptions have been stuck around the £10 mark.
Labels have been increasingly concerned about average revenue per user (ARPU) as streaming services offer trials, bundles and low price points in certain markets. Spotify has looked at price increases in certain territories, but recently committed to its current UK family plan rate.
Apple TV+, a streaming video service with original shows, launches on November 1 for £5 a month – cheaper than Netflix, which recently increased its UK tariff to £8.99. According to the FT report, talks are at an early stage between Apple and the labels and a pricing formula has yet to be discussed. Some labels are said to be open to the idea.
Apple Music recently confirmed that it has 60 million subscribers.
Toni Sacconaghi, an analyst at Bernstein, said it was a “genius” move for Apple to give away 12 months of Apple TV+ for free to new buyers of iPhones, iPads and Macs.
“The upshot is that by the end of 2020 [or] early 2021, Apple could accumulate millions or tens of millions of paying subscribers,” he wrote.