The idea of an Apple(NASDAQ:AAPL) services bundle has been around for about four years or so, but it might become a reality in just a couple months. The iPhone maker is readying a series of bundles for its various services, according to a report from Bloomberg.
CEO Tim Cook has made services a major focus of the business as the average iPhone owner takes longer to upgrade their device. Apple’s well on its way to reaching Cook’s goal of doubling its services revenue from 2017 by the end 2020 after introducing several new services over the last couple years.
By offering bundles of those services to consumers, Apple has the potential to improve a key metric used by most subscription services companies: customer lifetime value.
Image source: Apple.
Increasing attach rates and retention
One of the simplest ways to increase customer lifetime value is improved retention and higher attach rates.
Apple has over 60 million Apple Music subscribers. But it only has about 10 million active accounts for Apple TV+ (still on free trials), and Apple Arcade’s expected to reach 12 million subscribers by year-end.
Bundled pricing should raise attach rates for the services while increasing the stickiness of those customers since they don’t want to lose their preferred pricing.
A bundle of Apple TV+ or Apple Arcade with Apple Music could expand the subscriber base for all three services. It would help Apple differentiate its music-streaming service from competitors like Spotify, which is growing faster than Apple Music and threatens its dominant position in podcasts. Meanwhile, it would introduce Apple TV+ and Apple Arcade to more customers.
Apple Arcade could be the most important Apple service to get consumers to adopt. While it might cannibalize some of Apple’s App Store revenue, it should generate incremental revenue for most casual mobile gamers while increasing loyalty to the iPhone.
Ultimately, higher attach rates for Apple’s services will lead to greater loyalty for iPhone owners and increased switching activity from competitors’ devices. That’s the real driver of customer lifetime value: longer customer lives.
Getting new services profitable faster
Apple is also planning a new virtual fitness class subscription service, Bloomberg reports, which would be included in higher-tier bundles. Bundling new services like this or News+, which hasn’t yet attracted many subscribers, could get them to scale fast enough to cover costs.
Additionally, a fitness service could possibly benefit from reduced content costs if it’s bundled with an Apple Music subscription. The biggest driver of Peloton‘s (NASDAQ:PTON) cost of subscription revenue in 2019 was its growing music royalty expense. If Apple can negotiate the use of music in fitness classes as part of its Apple Music subscriptions, it would significantly reduce the number of subscribers needed to turn a profit.
A fitness service also ties in with Apple’s focus on health with the Apple Watch. Increased attach rates for the fitness service could lead to greater Apple Watch sales. Again, the tech titan is great at tying its services and devices together to increase the lifetime value of a customer.
The Apple bundle can make more money now
Driving incremental subscribers for services like Apple TV+ and Apple Arcade should be a top priority for Apple. Instead of paying a variable cost per subscriber on those services, like it does with App Store subscriptions, Apple’s costs are largely fixed based on its content budget. As such, the company can offer a discount for bundling those services and still produce incremental operating income.
That’s somewhat unique for bundling economics. For example, the cable industry will offer customers video service bundled with home internet service. The companies basically break even on video service, but increase the retention rates for home internet service, thus increasing customer lifetime value.
But Apple can make a profit now and profit later (through increased customer longevity) with its bundle.
Focusing on Apple’s customer lifetime value, as driven by its services, is what will fuel the next stage of growth for the FAANG stock. Bundling services together to increase the longevity of the average device owner while potentially increasing operating profits in the short term is a powerful factor supporting Apple shares.
CHICAGO (AP) — United Airlines has struck a deal with Elon Musk’s SpaceX to offer satellite-based Starlink WiFi service on flights within the next several years.
The airline said Friday the service will be free to passengers.
United said it will begin testing the service early next year and begin offering it on some flights by later in 2025.
Financial details of the deal were not disclosed.
The announcement comes as airlines rush to offer more amenities as a way to stand out when passengers pick a carrier for a trip. United’s goal is to make sitting on a plane pretty much like being on the ground when it comes to browsing the internet, streaming entertainment and playing games.
“Everything you can do on the ground, you’ll soon be able to do on board a United plane at 35,000 feet, just about anywhere in the world,” CEO Scott Kirby said in announcing the deal.
The airline says Starlink will allow passengers to get internet access even over oceans and polar regions where traditional cell or Wi-Fi signals may be weak or missing.
Sony has made it easy for Canadian consumers to preorder the PlayStation 5 Pro in Canada directly from PlayStation’s official website. Here’s how:
Visit the Official Website: Go to direct.playstation.com and navigate to the PS5 Pro section once preorders go live on September 26, 2024.
Create or Log in to Your PlayStation Account: If you don’t have a PlayStation account, you will need to create one. Existing users can simply log in to proceed.
Place Your Preorder: Once logged in, follow the instructions to preorder your PS5 Pro. Ensure you have a valid payment method ready and double-check your shipping information for accuracy.
Preorder Through Major Canadian Retailers
While preordering directly from PlayStation is a popular option, you can also secure your PS5 Pro through trusted Canadian retailers. These retailers are expected to offer preorders on or after September 26:
Best Buy Canada
Walmart Canada
EB Games (GameStop)
Amazon Canada
The Source
Steps to Preorder via Canadian Retailers:
Visit Retailer Websites: Search for “PlayStation 5 Pro” on the website of your preferred retailer starting on September 26.
Create or Log in to Your Account: If you’re shopping online, having an account with the retailer can speed up the preorder process.
Preorder in Store: For those who prefer in-person shopping, check with local stores regarding availability and preorder policies.
3. Sign Up for Notifications
Many retailers and websites offer the option to sign up for notifications when the preorder goes live. If you’re worried about missing out due to high demand, this can be a useful option.
Visit Retailer Sites: Look for a “Notify Me” or “Email Alerts” option and enter your email to stay informed.
Use PlayStation Alerts: Sign up for notifications directly through Sony to be one of the first to know when preorders are available.
4. Prepare for High Demand
Preordering the PS5 Pro is expected to be competitive, with high demand likely to result in quick sellouts, just as with the initial release of the original PS5. To maximize your chances of securing a preorder:
Act Quickly: Be prepared to place your order as soon as preorders open. Timing is key, as stock can run out within minutes.
Double-Check Payment Information: Ensure your credit card or payment method is ready to go. Any delays during the checkout process could result in losing your spot.
Stay Informed: Monitor PlayStation and retailer websites for updates on restocks or additional preorder windows.
Final Thoughts
The PlayStation 5 Pro is set to take gaming to the next level with its enhanced performance, graphics, and new features. Canadian gamers should be ready to act fast when preorders open on September 26, 2024, to secure their console ahead of the holiday season. Whether you choose to preorder through PlayStation’s official website or your preferred retailer, following the steps outlined above will help ensure a smooth and successful preorder experience.
For more details on the PS5 Pro and to preorder, visit direct.playstation.com or stay tuned to updates from major Canadian retailers.
Since the PlayStation 5 (PS5) launched four years ago, PlayStation has continuously evolved to meet the demands of its players. Today, we are excited to announce the next step in this journey: the PlayStation 5 Pro. Designed for the most dedicated players and game creators, the PS5 Pro brings groundbreaking advancements in gaming hardware, raising the bar for what’s possible.
Key Features of the PS5 Pro
The PS5 Pro comes equipped with several key performance enhancements, addressing the requests of gamers for smoother, higher-quality graphics at a consistent 60 frames per second (FPS). The console’s standout features include:
Upgraded GPU: The PS5 Pro’s GPU boasts 67% more Compute Units than the current PS5, combined with 28% faster memory. This allows for up to 45% faster rendering speeds, ensuring a smoother gaming experience.
Advanced Ray Tracing: Ray tracing capabilities have been significantly enhanced, with reflections and refractions of light being processed at double or triple the speed of the current PS5, creating more dynamic visuals.
AI-Driven Upscaling: Introducing PlayStation Spectral Super Resolution, an AI-based upscaling technology that adds extraordinary detail to images, resulting in sharper image clarity.
Backward Compatibility & Game Boost: More than 8,500 PS4 games playable on PS5 Pro will benefit from PS5 Pro Game Boost, stabilizing or enhancing performance. PS4 games will also see improved resolution on select titles.
VRR & 8K Support: The PS5 Pro supports Variable Refresh Rate (VRR) and 8K gaming for the ultimate visual experience, while also launching with the latest wireless technology, Wi-Fi 7, in supported regions.
Optimized Games & Patches
Game creators have quickly embraced the new technology that comes with the PS5 Pro. Many games will receive free updates to take full advantage of the console’s new features, labeled as PS5 Pro Enhanced. Some of the highly anticipated titles include:
Alan Wake 2
Assassin’s Creed: Shadows
Demon’s Souls
Dragon’s Dogma 2
Final Fantasy 7 Rebirth
Gran Turismo 7
Marvel’s Spider-Man 2
Ratchet & Clank: Rift Apart
Horizon Forbidden West
These updates will allow players to experience their favorite games at a higher fidelity, taking full advantage of the console’s improved graphics and performance.
Design & Compatibility
Maintaining consistency within the PS5 family, the PS5 Pro retains the same height and width as the original PS5 model. Players will also have the option to add an Ultra HD Blu-ray Disc Drive or swap console covers when available.
Additionally, the PS5 Pro is fully compatible with all existing PS5 accessories, including the PlayStation VR2, DualSense Edge, Pulse Elite, and Access controller. This ensures seamless integration into your current gaming setup.
Pricing & Availability
The PS5 Pro will be available starting November 7, 2024, at a manufacturer’s suggested retail price (MSRP) of:
$699.99 USD
$949.99 CAD
£699.99 GBP
€799.99 EUR
¥119,980 JPY
Each PS5 Pro comes with a 2TB SSD, a DualSense wireless controller, and a copy of Astro’s Playroom pre-installed. Pre-orders begin on September 26, 2024, and the console will be available at participating retailers and directly from PlayStation via direct.playstation.com.
The launch of the PS5 Pro marks a new chapter in PlayStation’s commitment to delivering cutting-edge gaming experiences. Whether players choose the standard PS5 or the PS5 Pro, PlayStation aims to provide the best possible gaming experience for everyone.
Preorder your PS5 Pro and step into the next generation of gaming this holiday season.
