MUMBAI: An already fierce music streaming service competition is expected to get hotter with Apple planning to jump into the game. The tech giant is said to be working with Beats, which it bought for $3 million last May, to launch a brand new music subscription service that will rival Spotify, reported the New York Times.
According to the report, Apple’s new music streaming service will be overhauled by some big names, including both of Beats’ co-founders- record label executive, Jimmy Iovine and hip-hop producer, Dr. Dre, along with former Beats exec and frontman of Nine Inch Nails- Trent Reznor. The latter is said to be involved with the redesigning of Apple’s music app.
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However, while both, Apple and Spotify will be vying for a larger piece of the streaming service pie, the former will not offer a free option. The news will probably come as relief to many music executives, who believe that free music prevents users from signing up for paid subscriptions. It will also bode well with artists who are against the free model like The Black Key, Garth Brooks and Taylor Swift, who not too long ago pulled down her entire catalogue from Spotify.
The Times also reported that Apple, which was once a leader in music sales thanks to iTunes, was turned down by record labels when asked to lower the music licensing costs. The company proposed a monthly subscription fee of $8, which is a $2 discount as compared to other services like Spotify and Rdio that have a standard fee of $10. The refusal is an indication of Apple’s declining relationship with the music industry.
In addition to the new music streaming service, the report also stated that Apple is planning to re-launch its iTunes Radio, which did not gain as much mainstream success as hoped. And playing a major role in revamping the radio will be former BBC presenter Zane Lowe, who recently joined the tech giant. Lowe was one of the most popular names in UK radio and is credited for helping launch a number of music artists like Ed Sheeran.
