Music Business

Apple Pushes Labels For Lower Prices, New Features In Search Of Streaming Music’s Sweet Spot

image from mheckman.comIt's not a new argument. If monthly subscription prices for music were lower – say $5 instead of $10 – more people would be willing to pay' thus, leading to more revenue for artists and labels.  No one know if it really would lead to more net revenues. But now, the powerful party pushing lower pricing is the mighty Apple; and that means we may be about to find out.

Its no secret that Apple is on talks with the labels about a new set of rights and features that it would like to image from to a relaunched Beats Music service.  Central to the talks, sources tell re/code, is a push by Apple to lower the price of subscription music.

Music sales are falling, but is the price of paid streaming to blame? Or is the culprit the plethora of free music services including YouTube, Pandora, iTunes Radio; along with ad supported versions of streamers like Spotify and Rdio? 

Exactly what Apple is pushing for is unclear. Could they achieve a lower price point by mixing in some advertising or sponsorship?  Or is the plan to bundle music with a product purchase; or to pair it with another service as Amazon has with Prime?  

Whatever Apple's proposal, it's clear that the search for streaming music's sweet spot has just begun.

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