Earlier this month sources told Re/code Apple wanted Beats Music subscriptions below $10 per month and was pushing record labels to make it happen. The publication now heard more whispers, as sources say Apple is aiming for a $5/month price point for Beats Music, but there’s no guarantee it will happen:
Apple has been pushing the labels for more extensive price cuts. It wants to relaunch the Beats Music subscription service it bought last spring next year, and industry scuttlebutt is that it’s trying to get the price cut in half, to $5 a month.
The logic of Apple’s argument, relayed by people who’ve heard the pitch secondhand: Apple’s best iTunes buyers spend about $60 a year on downloaded music — $5 a month. So if subscription services dropped that low, any download buyers that switched over to the streaming model would generate just as much revenue for the music labels. And, more important, the market of potential subscribers would get much larger.
Paying $10 per month may seem ‘steep’ for those on the fence about streaming music subscriptions. But $5 per month? That sounds much more enticing. The record labels should go for the volume play at a lower price. Once people start listening they won’t want to unsubscribe if the product is good enough.
Spotify Family Launches
Speaking of streaming music subscriptions for $5 per month, that is now possible with Spotify’s new family plans. Up to four family members can be added to a Spotify account, priced at 50% off the regular premium price of $10 per month and get their own account.
Spotify launched in Canada officially at the end of September—I wonder how many friends will sign up together for a family plan…