While all eyes were on Apple sharing additional details about the Apple Watch and unveiling the all-new 12-inch Retina MacBook, Billboard has published a fresh update on what is happening with the music arm of the company’s business.
Earlier reports claimed that Apple would take on Spotify and other competitors in the music streaming industry by relaunching Beats Music — integrated into the Music app — at a lower monthly price: $7.99 vs. $9.99.
Now, as it turns out, the music industry isn’t ready to accept that lower price:
Negotiatons for Apple’s upcoming subscription service are evidence labels are standing firm on pricing. Industry sources say Apple has backed down from its effort to lower monthly pricing for its subscription service to $7.99 from $9.99. Apple would have to absorb the loss if it sets a price lower than the standard $9.99.
Now that the pricing matches other platforms, Apple has to come up with other selling points to get customers to line up and pay for its service — you can have iTunes Radio for free if you are willing to watch or listen to ads.
There are whispers about Apple being in talks with labels and artists about exclusive content for its upcoming subscription service, says Billboard. Its cash pile, however, doesn’t necessarily mean that it will be able to outbid its competitors on exclusives for most key releases.
Apple is expected to release the new subscription service later this year. A likely launch date would be the day of the annual Worldwide Developers Conference.