2020 Bundles

the degree to which a bundle is compelling is the degree to which it is integrated with and contributes to a company’s core business model, and, in contrast to these other four companies, it’s a bit of a stretch to see how Apple One really move the needle when it comes to buying an iPhone or not.

Disney+ only has Disney (and Disney-owned 21st Century) content, whereas Netflix has both its own content and content from other networks.

At first glance, Disney+ seems a lot like Netflix: pay a monthly price, and get access to a bunch of different shows. However differences quickly become apparent:

Netflix makes money by selling subscriptions to its bundle. Of course the execution of this strategy is considerably more complex. For example, Netflix focuses on evergreen content because that means that ever more content increases the attractiveness of Netflix to new subscribers, reducing customer acquisition costs. Netflix is also focused on qua... See more

All of this is a long way of explaining why I was relatively underwhelmed by last week’s announcement of Apple One. Apple One includes Apple Music, Apple TV+, Apple Arcade, and iCloud storage, for either individuals or families; Apple Premier adds on Apple News+ and Apple Fitness+.

These differences make sense when you realize that Disney+ is not simply about earning subscription revenue; rather, it is a direct-to-consumer touchpoint for Disney’s entire business

Disney+ is significantly cheaper than Netflix ($6.99 versus $12.99).

Disney+ does not necessarily include everything on Disney+; for example, last month Disney released Mulan on Disney+ for an additional $29.99.