Apple is looking to cut down the subscription fee for its Beats Music streaming service, from $10 to $5 a month. This seems to be part of the drive to revamp the service itself since Apple acquired the Beats Electronics brand a few months back.
A few weeks back, there were rumors that Apple could be looking to push down the prices for Beats Music, but specifics were missing. This move to cut down the prices by half, is a significant one, not just for Apple’s newly-acquired music streaming service, but the entire music streaming service industry.
To achieve all of this, Apple is negotiating with various music labels, asking them to cut special deals in licenses, which should enable Apple to offer streaming services at cheaper prices than the industry standard. The company has also asked for input on features and changes they’d like music providers to make in order to help create a better music streaming service.
The move is centered around the fact that currently Apple sees iTunes customers spend a maximum of $60 per year on music download. So breaking it down to each month, you get $5, which is what Apple is aiming for. Apple argues, that even if this price cut does not increase revenue through the addition of potential customers, the company will continue seeing the same level of constant revenue generated through their dedicated audience.
Apple’s own iTunes Radio service does not offer any on-demand components, and like most radio services, offers radio-styled playlists which are backed by advertisements. Beats Music is something Apple will be using to enter the market, in an effort to compete with giants like Spotify.
What other changes or overhaul Beats Music gets treated to, is still unclear. There are speculations that Apple may even disassociate the streaming service from the Beats brand itself. We will have to wait till the start of next year – when Apple launches the revamped service – to find that out.
According to reports, music download sales have been dwindling globally and the rate of the decrease, is increasing. We can be sure Apple will be looking to make a pitch that helps everyone in the industry grow, with consumers outside of the Apple circle benefitting as well.