Music Business

Apple To Relaunch Beats Music In June With No Free Tier, Lower Price

Beats appleEver since Apple acquired Beats for $3.2 billion, we've been waiting to see what they'd do with their music streaming purchase. There have been hints and leaks, but it now appears we'll finally find out this June.

Apple is planning to unviel a revamped Beats Music service within iTunes during its June Worldwide Developer Conference, according to several sources. Music curation and customization will be at the center of the center of the new service, as it was in Beats Music.

The music service might have launched as early as next week, alongside Apple's highly anticipated smartwatch, according to 9-5 Mac. But the unveiling was delayed by the departures of key employees, along with technology integration issues between the two companies. Bobby Gaza, SVP of Technology at Beats, was among the recent departures. 

$7.99 Monthly, No Free Tier Thanks To The Major Labels

image from philosophy.talons43.caApple's new music service will come with a $7.99 monthly price tag, 20% lower than its competitors.  But at the urging of exectutives at all three major labels, Apple's new music service will not offer a free tier, as does Spotify.  "We want to accelerate paid subscription,” Universal Music head Lucien Grainge said at the Code/Media conference last month. “Ad-funded on-demand is not going to sustain the entire ecosystem of the creators as well as the investors.”

Apple's End Game

Apple-logoSenior Apple executive Eddy Cue and Beats co-founder Jimmy Iovine have also been pusing the labels that music  “needs to get behind a paywall,” sources tell re/code. While Apple will likely keep it's iTunes Radio service free, labels forcing Spotify to signifigantly scale back its free music offering would level the playing field and help push users towards Apple. 

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  1. ““Ad-funded on-demand is not going to sustain the entire ecosystem of the creators as well as the investors.”
    But it will sustain the creators, just gotta remove investors. More bullshit. This is a sure shit fail and step back to 2002

  2. Good. There should not be a free tier for this, unless the advertising revenue is significant enough to make up for the shortfall.

  3. Artists need to get PAID. Pirates need to be ARRESTED. Music needs to be PAID FOR. Period. End of story.

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