Apple made the splashy announcement yesterday that it would be launching an Apple One bundle this fall, giving customers the option to combine its various streaming services, including Apple Music, Apple TV+, Apple Arcade, and its soon-to-be-released Apple Fitness service. Bundling is the marketing tool du jour that’s actually been around for years, used to sell everything from health insurance to cable TV to McDonald’s Happy Meals. But the bundling of digital products, which cost nothing to distribute, supercharges the value that it creates for both bundle providers and consumers. In a recent interview with Marker, Shishir Mehrotra, a former Google exec and the founder and CEO of Coda, explained the economics of bundling and what makes it such a powerful tool.

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