$10/monthly rate may be slashed.
By Dileep Thekkethil
BANGALORE: Apple is in discussion with music companies to reduce the monthly subscription cost of Beats Music streaming app.
Apple’s discussion with major music companies is in full swing and the companies could come up with new rights and features for the next version of Beats Music app, according to a report in Recode.
Sources say that the new version of Beats Music will give music brands a chance to get paid for each music track, while Apple will make the app more reasonable for users by reducing the cost of its service from the current $10/month.
Apple is yet to give an official statement regarding the new deal and the subsequent slash in the monthly payment for Beats Music app.
Digital music companies and major labels had been in frequent battles since the 1990’s. This was the time people started abandoning the traditional music CD’s, hurting music companies that failed to strike a deal with digital music stores. Apple has had legal battles with some of the labels, but during the last few years their relationship has improved.
Currently, labels have put forward a deal which requires the digital music stores to charge $10/month for music streaming services. If Apple succeeds in persuading them to a deal below the current rate, they will benefit in the long run as Apple can get an upper hand over competitors like Rhapsody and Spotify.
Apple acquired Beats for $3 billion this August with no official announcement about the company’s plans with Beats Music app. There were even reports suggesting that Apple will be scrapping the app, but it is still available for Apple and Android devices.
According to latest reports, Apple will not be scrapping Beats Music, but will come with a better version too sometime next year.
Meanwhile, the company will continue providing users with free iTunes Radio, which gets revenue from ads.