Record labels balked at Apple's plan to undercut Spotify
AP
Apple had hoped to cut the cost of on-demand music streaming below Spotify's $10/month price point, but record labels may make that impossible, according to a Billboard report.
Apple's service is based on Beats Music, which it acquired last year.
The thinking is Apple could quickly grow its streaming service - which will be rebranded as part of iTunes - if it can offer the same content as its competitors at a lower price.
But Apple reportedly decided not to offer its service at $7.99/month after record labels said it would have to absorb the cost of anything below $9.99.
The iPhone maker has also abandoned a freemium model and will only offer a paid service.
Apple's inability to compete on price may actually be a good thing, though. Without a price advantage Apple will have to compete on content and features, which is a boon for people who love music.
Apple is expected to unveil its music service at its developer conference in June.
- I got a $40K raise using this 30-second strategy. It made me realize loud work, not hard work, always wins.
- Qatar Airways' new CEO explains why it's sticking with the Airbus A380 as other airlines retire the costly superjumbo
- Prince Harry and Meghan found out about Kate Middleton's cancer diagnosis on TV like everyone else, report says
- Kia India looks to expand sales, service network to 700 touchpoints by year-end
- Shapoorji Pallonji’s Afcons Infra files DRHP for ₹7,000 crore IPO
- Water crisis affects businesses across Bengaluru; Is there room for cautious optimism?
- BenQ Zowie EC2-CW review – Premium wireless mouse for gamers
- Banks' GNPAs set to improve further to 2.1 pc by FY25: Care Ratings