Apple seeking to lower price of music-streaming services

3 Oct 2014

Apple has begun talks with a number of major record labels as the consumer tech giant seeks to lower the cost of online music-streaming subscriptions.

That’s according to a report by Re/Code, which claims Apple wants to introduce a new pricing structure as it prepares an overhauled version of its recently-acquired Beats Music service.

Having initially been resistant to the subscription-based model, major labels currently allow streaming services such as Spotify, Rhapsody and Beats to offer customers all they can stream for $10 a month in the US (in Ireland, Spotify Premium costs €10 a month). However, Apple reportedly believes the price is too high.

Following its US$3bn acquisition of Beats, it was revealed in July that Apple was to shed 200 of the 700 employees (mostly in non-tech roles) in an attempt to streamline its workforce. Apple CEO Tim Cook said Beats hardware employees would begin the transition of falling under the Apple umbrella in its offices in Cupertino, California.

A recent report by Midia Research revealed only 25pc of music streamers spend more than US$10 every three months.

Dean Van Nguyen was a contributor to Silicon Republic