Apple reportedly plans to cut the price of Beats Music

Apple reportedly plans to cut the price of Beats Music
Apple has a new mission that it is seeking to complete, and the good news is that if it is successful, it will result in consumers saving money. According to reports published on Friday, the tech titan is talking to music labels about dropping royalty rates. Apple wants to pass the savings along to its customers who stream music by lowering the price of its Beats Music service.

Although Apple is in talks with the labels, there is no guarantee that the recording industry will agree to any change in royalties. Sales of digital downloads have been dropping and the music industry is quick to blame streaming outfits like Spotify, Rhapsody and Beats. The trio offer unlimited streaming for as low as $10 a  month. Music fans can already stream music for free from YouTube, Pandora and Apple's own iTunes Radio, as long as they don't mind getting bombarded with advertisements.

Apple's purchase of Beats Audio earlier this year for $3 billion, included Beats Music. While it still is unclear what the motivation for the acquisition was in Cupertino, it was Apple's largest corporate purchase ever. That is why many were shocked when there was talk last month that Apple was closing Beats Music. But that turned out to be a false rumor (hey, it happens folks!), and while Apple is apparently keeping the streaming service, it wants to price it at a more consumer friendly rate. The question is whether Apple can succeed in convincing the music industry that lowering what they receive in royalties could result in stronger demand, and a higher bottom line.

source: Recode via SlashGear

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21 Comments

1. Saioofi

Posts: 344; Member since: May 23, 2014

Interesting

2. Rajanvir

Posts: 56; Member since: Dec 11, 2013

Why there isn't any Amplifier or High Quality Speakers on both new iphones while they are free for them and also no Beatsaudio equalizer or Logo on new Iphones

5. ihavenoname

Posts: 1693; Member since: Aug 18, 2013

Actually it's good thing that there aren't any Beats Audio "improvements".

9. UglyFrank

Posts: 2194; Member since: Jan 23, 2014

Not enough time to implement it I guess

17. AlikMalix unregistered

If you want "sponsor" logos get an android: Verizon, AT&T, Google edition, etc, and get the bloat that comes with the logos. One of many reasons why I prefer iPhones - no sponsorship branding and the trash that comes with it. If I want beats - I can download it.

20. DnB925Art

Posts: 1168; Member since: May 23, 2013

Google editions do not have sponsorship logos (GPE S4, HTC One, and also the Nexus lines, plus the Moto X/G if bought direct from the Google PLay Store). Even many of Sprint's phones do not come with Sprint logos. My Note 2 from Sprint has the Samsung logos only (no Sprint logo on it). On the other hand, Verizon LOVES to brand their logos over everything, except for the iPhone and Windows phone I think.

21. AlikMalix unregistered

GPE whether from Samsung, LG, or w/e has a Google Logo on it, if i'm not mistaken.. - that's branding!

3. xtroid2k

Posts: 601; Member since: Jan 11, 2010

This is a new concept for me. Apple wishes to reduce the price????

14. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Lol. Not 100% new. Apple became a household name in the late 70s/early 80s due to being the 1st company to offer a low cost consumer home computer, at the time they released the Apple II, it was like half the cost of similar computers.

18. AlikMalix unregistered

Actually Apple buys the best from the tech and offers at $0.00 to its consumers: authentic fingerprint technology, siri, loads of music and shows on iTunes, and then there are its own apps that are incredibly powerful - GarageBand, iMovie, pages, numbers, etc. and for example - I still haven't founf any movie editing software on PC or iOS or Google that's as easy to use and so sophisticated as iMovie. What about new Mac OS updates - unlike windows where they charge $99+ to upgrade or over $200 for new windows - macs new OS are free!!! And all the tools like doc processors, movie editors, photo editors that come with it are also free.

4. Q1Q10

Posts: 20; Member since: Mar 08, 2013

In response to the first guy, that's a very good point, its more likely that apple will try to raise its profits by getting the royalties down then actually bringing the price of its product down

6. gaara6775

Posts: 738; Member since: May 20, 2014

8. ihavenoname

Posts: 1693; Member since: Aug 18, 2013

It's hoax... Do some research, dude.

11. gaara6775

Posts: 738; Member since: May 20, 2014

Ohk brah xD

12. a_merryman

Posts: 749; Member since: Dec 14, 2011

Do you even need to do research with a site like that? It basically screams fake.

7. hellonerds

Posts: 334; Member since: Aug 27, 2013

Cut the price on music so they can higher the price on the beats headphones even more lol..

10. Philipand96

Posts: 103; Member since: Jul 12, 2014

Apple can reduce its price unilaterally, WITHOUT artist taking a cut in their income All Apple has to do is takes a SMALLER fee so CONSUMERS benefit Apple is the one sitting on billions, if it want to make it music service more attractive ask for less A cynic would say if prices are lowered Apple pays less to the Artist Apple must know my friend Al Truistic

13. EclipseGSX

Posts: 1777; Member since: Oct 18, 2011

Apple and cutting prices in the same sentence? Bwahahahha only if Beats Music 2.0 is coming out next week. Give me a break.

19. lsutigers

Posts: 832; Member since: Mar 08, 2009

This is a desperate move to jumpstart Beats Music. It only has 250k subs and declining while facing intense competition from services like Spotify with 10+ million subs, Apple's own iTunes, Pandora and rdio. It sounds like this may be a last ditch effort to revive the music service as it looks like the partership with AT&T has not worked out as expected.

15. fzacek

Posts: 2486; Member since: Jan 26, 2014

Apple is going to cut the price of one of their products? That's a first...

16. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

"Apple reportedly plans to cut Beats Music." There, fixed it for you.

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