WSJ: Apple to charge $10 a month for its new streaming music service

WSJ: Apple to charge $10 a month for its new streaming music service
Apple is looking to grab some of Spotify's leading 86% share of the U.S. and global streaming music market once it introduces its own streaming service later this month. The introduction is expected to take place at this year's WWDC developer conference starting June 8th. The tech titan is responsible for 80% to 85% of world-wide music downloads, but the transfer of music this way has been in a steady decline. Streaming music is the only form of music transfer that has been growing. Last year, music download sales declined 8% across the industry, to $3.6 billion. At the same time, music subscription revenue rose 45% to $1.6 billion.

Over the last few months as rumors about Apple's streaming service has grown, there was talk that Apple would seek to undercut Spotify and charge $8 per month for paid service as opposed to the $10 per month that Spotify receives. But those familiar with Apple's plans say that the company will also be asking for $10 a month. And while Spotify still has a tier of free service supported by ads, these same people say that Apple will offer just a limited number of songs that will be free to listen to. 

Once again citing those who claim to know Apple's intentions, the company is willing to grab streaming business at the expense of losing revenue from those downloading tunes. For example, an iTunes subscriber paying $10 to download an album will receive a prompt from Apple telling him that he is better off using the $10 to subscribe to one month of streaming music instead. As discussed recently, Apple might offer as much as three free months of music in order to get potential subscribers interested in the streaming subscription service. It plans on using an aggressive advertising strategy, and will update its music app in order for it to work with the new service. Apple will also offer the service and the app to Android users.

While Apple might introduce the streaming service in a matter of days, the company has not yet signed deals with the three largest music publishers, Warner Brothers, Universal and Sony. If these deals are not done in time, Apple could be forced to delay its announcement. The company also had 303,000 subscribers in the U.S. for its Beats Music streaming service as of the end of December. These subscribers will not be automatically moved over to the new service until it is running without problems.

The tech titan has also started hiring BBC DJs to host more traditional sounding radio channels that will be offered along with the streaming music. And users will also have the opportunity to program their own "stations" like Pandora users do. For Apple, this is all a sign that it has made the move from a declining mode of music consumption to one that is showing growth.


source: WSJ

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35 Comments

1. Settings

Posts: 2943; Member since: Jul 02, 2014

If you can't beat them, join them.

15. waddup121 unregistered

yap!!!

16. Sauce5 unregistered

If you can't beat them? Apple is the worlds biggest f***ing leading music retailer lmfao. Has been like that for a decade. Your comment more so belongs in an S6 article.

19. cezarepc

Posts: 718; Member since: Nov 23, 2012

True, and if Apple manages to sign Warner Brothers, Universal and Sony it's going to take a lot to take them out of the top spot. I'm still staying with Spotify though.

29. Settings

Posts: 2943; Member since: Jul 02, 2014

Yes true, Apple may be the biggest but the fact that it wants to take down Spotify means it's a threat to their iTunes business. As of now Apple doesn't have music streaming available so it wants to take down Spotify and have monopoly. Greedy basterds.

2. Tziggy14

Posts: 624; Member since: Sep 02, 2014

I'm laughing so hard right now. Lol. Apple may have the brand name but Spotify is ubiquitous and free with ads. Why would people want to pay for music again.

4. Browndynamite

Posts: 21; Member since: Jun 01, 2015

Apple fanboys will pay for anything new that comes out from it

3. darkkjedii

Posts: 30971; Member since: Feb 05, 2011

I'd rather just download my music and create playlists.

20. gaming64 unregistered

True that, man. I wont sacrifice emergency mobile data just to listen to music.

27. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Completely agree. I don't have unlimited data plan and having music on my storage is much more convenient. And most of my music on phone is ripped from CDs that I bought so I try to avoid stealing it. Yes, Spotify is indeed stealing, pay 19$ dollars for 100.000+ songs - yep, what a great deal for artists.

5. shiftt

Posts: 333; Member since: May 03, 2015

Tidal failed at trying to beat Spotify, Apple's gonna try but I don't see any benefits for joining them though. Apple might have a fan base but come on now... Music streaming is dominanted by Spotify and if the artist take there stuff off, there is YouTube and if that goes under(WHICH IS EXTREMELY UNLIKELY!) we still have VEVO and Pandora.

6. Scott93274

Posts: 6032; Member since: Aug 06, 2013

I was talking to a coworker of mine the other day and we are going 50/50 on Google Play Music, we're going to create a common google account and just share. Can't beat $5, commercial free music experience... ... unless you're a pirate that is...

7. DeusExCellula

Posts: 1390; Member since: Oct 05, 2014

YAAAAAAAAAAR

9. Kruze

Posts: 1285; Member since: Dec 30, 2014

ARRRR...It's going down, shiver me timbers...I want free songs, I wanna dance.

12. Scott93274

Posts: 6032; Member since: Aug 06, 2013

You guys are too funny. :-P

8. Kruze

Posts: 1285; Member since: Dec 30, 2014

People still pay for songs? I LOL'ed when I see songs priced at $1.99 on iTunes lol. Even if you wanna pay for the song, Spotify is the way to go. Paying $1.99 for a shitty song like Anaconda isn't worth it at all.

11. Scott93274

Posts: 6032; Member since: Aug 06, 2013

Well, I can't speak for iTunes, but for Google Play you can get whole albums for much less than buying each song individually, some times they go on sale, and other times you can catch something you really like for free. I got the Guardians of the Galaxy soundtrack for free off of Google Play, I also got Nine Inch Nails Broken album for $6.00, which was free after I spent what I earned on my Google Rewards app by answering surveys.

23. gaming64 unregistered

Albums on iTunes are $3 more than that. A reachable price but still a bit expensive

28. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Please realise that You can as well download from torrents as from Spotify, in both cases artists earn pathetic amount of pennies. The difference here is, You're giving your money to Spotify and greedy record companies, artists get nothing, look for Rob Chapman talking about it.

10. iusshpandeh

Posts: 250; Member since: Jul 23, 2014

MixRadio all the way! :)

13. Amiet

Posts: 37; Member since: Apr 02, 2015

No wonder so many people hate apple. Greed ho.

21. gaming64 unregistered

There are other music services that also let you pay. And Apple benefits from the money. Giving the music service ar a very low prive would mean a loss for them since they dont earn much

14. Amiet

Posts: 37; Member since: Apr 02, 2015

No wonder so many people hate apple. Greedy ho.

17. dimas

Posts: 3347; Member since: Jul 22, 2014

Why don't they just bring iTunes to Android just as what they did with Windows version? I liked iTune's big internet radio streaming channels and music download choices (yes I am still one of those few people who pay for downloading music)

18. Taters

Posts: 6474; Member since: Jan 28, 2013

10 dollars? I know that Apple are crooks but I didn't know they were that bad. Lol

22. CreeDiddy

Posts: 2147; Member since: Nov 04, 2011

Let's see Spotify just reached 15 mill subscribes this year. Apple should hit this within 6 months! Took Spotify at least 4-5 years. I'm jumping ship as soon as Apple Music launches. Remember their are over 800 million iTunes accounts. Apple may reach between 4-5 million around launch. I see them advertising their streaming service heavily as they are heavily invested with music since the iPod.

25. gaming64 unregistered

They moved away from the music service for a long time now . All that's needed now is to restore the iPodline to its glory. A sixth generation iPod would be a deal breaker

26. gaming64 unregistered

*sixth gen iPod Touch

24. ThePATRIOToverlord

Posts: 50; Member since: May 29, 2015

putrid apple milking...Google Play Music is for sure already better, with Wolfson DAC in S6, sounds great

30. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Haha, sorry to break your troll heart, but HTC and Cirrus DACs found in iPhone 5S are already superior to Wolfson. This really nothing new actually.

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