Apple is trying to give customers good reasons to sign up for yet another subscription streaming service.
Their angle, according to this report from the Financial Times, is to bundle it with its $10 a month music service. Executives from at least one label are wary, the piece says, worried that this could be a repeat of the iTunes 99-cent era where many labels felt they got the raw end of the deal.
At $5 a month, Apple may be the cheapest ad-free streaming app, but it also has the least amount of content to offer. It needs something to stand out and drafting off the success of its music service is the easiest route.
If Apple can pull this off, it then puts the onus on Netflix to follow suit. Right now, Netflix is among the only companies that hasn’t offered its app as part of a larger deal. And if that’s the way things are headed and consumers come to expect them, Netflix faces the choice of either partnering up or risk looking expensive.