A new report by Re/code gives some extra details about Apple’s future plans for its streaming service, Beats Music. A few weeks ago Apple was reportedly looking to push prices down, although specifics were not known at the time.
Today, Re/code says that Apple wants to cut prices in half, from $10 a month to $5 a month. This would be part of a relaunch of the Beats Music service — exactly what a ‘relaunch’ entails is not yet known. It is possible that Apple will disassociate the Beats brand from its streaming service.
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Re/code says that negotiations revolve around a stat about Apples ‘best iTunes customers’, who apparently spend $60 a year on music. This works out to $5 a month. Beats Music currently costs $9.99 per month. Apple executives are arguing that pushes the price down will result in a situation where revenue from music sales remains at least constant from its dedicated audience, if not greater from the wave of potential additional customer adds.
The report notes that any price cuts Apple arranges would also have to be offered to competing services as well. Negotiations are just that and much of this will be subject to change as talks are ongoing. The revamp of the streaming service is not expected to debut any time soon, so it will take a while for anything to be finalized.