Apple Wants Beats Music Price Below $10/month, In Talks with Record Labels
Beats Music was acquired by Apple as part of a massive $3 billion deal earlier this year, which also included Beats Electronics. With rumours looming of an imminent Beats Music rebrand, Re/code reports Apple wants to lower monthly subscription prices below $10 per month:
Sources say Apple is talking to the big music labels about a new set of rights and features it would like to include in a revamped version of the Beats Music service it bought earlier this year. Among the things Apple wants is a new pricing structure that would allow it to sell the service for less than the $10 level it’s at now.
Discussions are in their early stages, sources say, and Apple isn’t planning on overhauling Beats Music until next year.
Last month it was reported Apple was set to overhaul the Beats Music brand, and this report jives with the company’s goals to bring streaming music to the masses. Now that Jimmy Iovine and Dr. Dre are on board, it provides Apple with an “in” for these exact negotiations over price.
Beats Music is already contending with streaming music heavyweights such as Spotify (which recently launched in Canada), Rdio and Pandora. If Apple wants to make a splash, undercutting the others on price might make people switch (it would be seen as such a non-Apple move).