Apple is reportedly looking to make a few changes to the Beats Music subscription that involves a major price drop in the monthly cost to $5.
Apple, one of the largest tech companies around the world, is preparing to make its valuable Beats Music subscription an affordable option for its consumers. According to a report by Re/Code, sources familiar with Apple's plans revealed that the tech giant is planning to lower the price of its Beats Music streaming service from $10/month to just $5 per month. Apple is reportedly conducting preliminary talks with record labels to reduce the cost of the fees paid to them.
The latest price-cut news comes on the heels of Spotify's new Family plans that offer up to 50 percent off on connecting additional accounts. Spotify announced the new plans Monday, which gives a second subscription at just $5 if an existing premium customer adds a family member under the same billing account. By adding more subscribers, customers can fetch steep discounts, as much as $20 for adding up to five members.
"Apple has been pushing the labels for more extensive price cuts. It wants to relaunch the Beats Music subscription service it bought last spring next year, and industry scuttlebutt is that it's trying to get the price cut in half, to $5 a month," Re/Code report says.
Apple is currently charging a similar $60 annual fee for its iTunes customers to download music Apple App Store. So the tech giant might be mulling over making its Beats Music subscription in line with its own music service. If successful, the $5 a month plan for Beats Music will take the market by storm as most music streaming subscriptions charge a standardized $10 monthly fee for a similar service.
Apple will also have a challenge to convince record labels to drastically reduce their fees. Music streaming service pay a fee to record labels when their songs are played, which has convinced the labels that streaming services have great potential for bagging a lot of cash, the report added.
