Apple is thinking about offering a subscription that bundles its original TV shows, music service, and magazine articles. The idea is similar to Amazon's Prime.
Such an ambitious offering would bear some similarity to Amazon’s Prime service, which spans video, music and some news. Yet it would be sharply different from many other subscription media services, which tend to be focused on one specific entertainment area.
Depending on the price charged, it could give Apple a boost in its efforts to develop subscription revenue, reducing its reliance on sales of iPhone and other hardware.
One of the big questions is whether Apple can charge enough to make money and still attract subscribers. Many subscription services, particularly in video, have found that difficult. Netflix, for instance, is burning through billions of dollars a year in funding new programming. Also unclear is how Apple will compensate any media companies that supply content, most obviously in the magazine area.
We'll keep tabs on this potential subscription offering and let you know what it could mean for Apple's stock.
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