Apple is betting big on "services", which has become the tech giant's most profitable division amidst a period of stagnation for the entire mobile industry that seems to have hit iPhones especially badly in terms of global sales.
However, Apple's super-bundle is running into opposition from the music industry. According to the report and the infamous anonymous sources, Apple is finding that record labels are "growing more wary about (their) relationship with Apple".
Users will still get access to 50 million songs, plus music videos and podcasts like they did before with iTunes.More news: Twitter admits using email IDs, phone numbers of users for targeted ads
The iPhone maker has recently approached the big music companies about bundling together Apple Music and Apple's upcoming television service, but the two sides have not yet discussed a pricing formula, said people familiar with the negotiations.
Usually, when a company offers a bundle, it offers it at a slightly lower price than the combined individual price of the services.
Sources familiar with the discussions told the Financial Times that talks are still at an early stage and the two sides have not yet even discussed a pricing formula yet, but some music executives are already fearing their profit margins will be hit if Apple's new bundle undercuts the $10 monthly price tag that has now become standard for nearly all music streaming services, including Apple Music and Spotify. If Apple ends up offering a bundle for $14.99/month, it won't really make much sense and fail to attract new subscribers.More news: Alec Baldwin Says He Was Scammed by Statue of Liberty Boat Tour
The concern appears to be that Apple might undercut the current price it charges for Apple Music by bundling it in with other services.
We don't know whether this bundle would include other services like News+, Arcade, AppleCare+, or iCloud storage.More news: Tusk to Johnson: Brexit not 'stupid blame game'