Apple Music could potentially follow Spotify's path to bundled offerings, primarily due to its existing Apple Music Classical integration. Here's why this shift is feasible and significant:

Apple's Current Position:

• Nearly 92% of Individual subscriptions are currently non-bundled (as of February)
• Apple Music Classical already exists as a separate app included with subscriptions
• The company currently offers bundle options through Apple One

Legal Framework:

• No apparent legal barriers prevent Apple from reclassifying subscriptions as bundles
• Phonorecords IV determination allows different mechanical royalty calculations for bundled offerings
• Apple could potentially present a stronger bundling case than Spotify

Comparison to Spotify's Approach:

• Spotify implemented bundling through audiobook integration (15 hours monthly)
• Created an "audiobook-only" tier that initially included music access
• Successfully reduced royalty payments through this restructuring

Key Considerations:

• Apple could create a separate Classical plan at a lower price point
• This would enable reclassification of regular subscriptions as bundles
• Current positioning offers negotiating advantages and maintains rightsholder relationships

While Apple hasn't indicated plans to shift toward bundling, the option remains available. The company must weigh potential royalty savings against maintaining industry relationships and avoiding criticism.

Industry Impact:

• YouTube Music already classifies most paid users under bundles
• Spotify reports significant royalty savings from bundled offerings
• Topic likely to be central in upcoming Phonorecords V negotiations

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