One bundle to rule them all

Commentary3 months ago
"Debundling" has been a major and highly visible theme across many of the economic disruptions in we've seen over the last decade.
Cable TV has been debundled into individual streaming subscriptions; enterprise software suites have been debundled into specialized products; even newspapers have been debundled into topic-oriented subscription offerings.
However, for businesses that are able to deliver outstanding consumer value propositions and invest heavily in upfront fixed costs, "bundling" may be in fact be the future.
For example, this week reports emerged that Apple is set to release a subscription services bundle (dubbed "Apple One"), which would offer its video, music streaming, gaming, and news subscription services all under one monthly package.
We see this news as a major step towards the ultimate "Apple-as-a-Service" end-state that we outlined last year in our deep dive on Apple. It's analogous to what Amazon did with Prime, starting with free shipping and evolving to encompass video, music streaming, cloud storage, and even grocery discounts.
Apple has over 1 billion active devices globally, and each device is effectively a mini retail store offering you add-ons like Apple Music. Historically, Apple has put an individual price tag on each item in the store. Often times, it results in sticker shock and lower adoption ("Eh, I'll just use Spotify's free plan").
But unlike channels in a cable TV bundle, Apple's offerings make each other easier to use. Your devices share your data via iCloud, leverage your Apple Pay credentials, etc. They form a ubiquitous, seamless ecosystem. By bundling those offerings at a discount to the prices you'd pay a-la-carte, Apple should drive greater customer adoption, retention, and satisfaction.
In an age where every product bundle is seemingly at risk, companies focused on ecosystems may be only "Ones" left standing.

Become a Titan investor today.

Titan Invest is an SEC registered investment adviser. By using this website, you accept our Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance. Account holdings are for illustrative purposes only and are not investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Refer to Titan Invest’s Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Brokerage services are provided to Titan Clients by Apex Clearing, an SEC registered broker-dealer and member FINRA/SIPC. For more information, see our disclosures. Contact: 110 Greene Street, Suite 910, New York, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
© Copyright 2020 Whisker Technologies, Inc. All rights reserved.