Streaming music is cheaper than buying all the tracks that you would like to hear. Modern streaming services charge from $7 to $10 per month, which may not be a lot for music fans, but which keeps a lot of people away from them. Apple wants to change that and is, reportedly, in talks with music labels about a possibility to drop the price.
Apple is in negotiations with large music labels over reduction of their fees for music in a bid to cut-down the price of Beats Music’s $10 monthly subscription fee, reports Re/code. Discussions are in their early stages, Apple is not planning on overhauling Beats Music until next year, according to the report.
Sales of download music have been decreasing for many quarters now. Apple needed a music streaming subscription service to offset its iTunes revenue drops. Now, Apple needs to boost its revenues associated with Beats Music somehow. A natural way to do this is to cut-down the price and sell the service to more people.
Apple traditionally knows how to treat its large partners among content providers. It once persuaded them to throw away DRM copyright protection technologies from MP3s in order to sell more music, a plan that was a huge success. Perhaps, the company will manage to make streaming music services more affordable as well. One of the ways to lure labels to drop prices of music for a subscription service could be offering them to stream their video content as well, both via Beats Music and Apple TV services.
Apple did not comment on the news-story.
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KitGuru Says: Many services, including Beats Music, require a subscription by default, but provide a free trial for a limited amount of time. By contrast, there are services, such as, DI.fm, which provides free 96kb/s MP3 streams and require a monthly payment of $7 for 256kb/s MP3 streams. Perhaps, Apple is trying to make Beats Music both free (to lure music lovers) and more affordable at the same time?