On Monday, Apple instantly transformed its Apple TV+ streaming service from an also-ran into a compelling Netflix alternative.

But it didn’t do so on its own. Instead, the company announced a new bundle for current Apple TV+ subscribers: For an extra $10 per month, customers can add both Showtime and the ad-free version of CBS All Access, which normally cost $19 per month together. (Apple TV+ itself costs $5 per month or $50 per year.) Those who subscribe to this bundle can then access it not just on Apple TV streaming boxes, but through the Apple TV app on Roku, Fire TV, LG TVs, and Samsung TVs.

Squint hard enough, and this offering looks like the beginning of a new kind of TV bundle, one that’s a lot better than bloated cable packages. While you’ll still have the option to pay for individual streaming services, you’ll also have some opportunities to string certain services together at a discount.

Why the Apple bundle works

Apple and ViacomCBS (which owns both CBS and Showtime) had good reasons to bundle their streaming services together.

Currently, Apple TV+ offers just a few dozen original series and movies, and Apple has mostly abstained from licensing older content to boost its catalog. As such, it’s dwarfed by the likes of Netflix, Amazon Prime, and Hulu, each of which offer thousands of movies and shows.

ViacomCBS’s services are in many ways complementary. CBS All Access provides the kind of mainstream network TV that Apple TV+ lacks, including news, talk shows, sports, and good old-fashioned procedurals. It’s also been getting more back-catalog shows from ViacomCBS cable channels such as Nickelodeon, Comedy Central, and BET. Showtime, meanwhile, provides a major source of Hollywood films along with the kind of prestige TV back catalog that Apple TV+ lacks.

The bundle also serves a more pressing need for Apple, which so far has been giving away a year of Apple TV+ to anyone who buys a new Apple device. In a few months, those free subscriptions will start to run out, and customers will begin questioning whether they should still pay for a service with so little to watch. The ViacomCBS bundle might compel them to stick around.

What’s in it for ViacomCBS is less clear, given that the total price is far less than the standalone pricing of All Access ($6 per month with ads, $10 per month without) and Showtime ($11 per month, or $9 per month when bundled with an All Access subscription). But like every other company in the streaming wars, ViacomCBS must now contend with a fickle subscriber base that can easily bounce between services based on whichever has the best shows at the moment. A bigger bundle that’s priced in the same ballpark as Netflix might be something people want to keep for longer than a month or two at a time.



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