As we approach the announcement of Apple's release of the Beats music streaming service, we're slowly discovering what the new music streaming service will include.
At this stage, Apple is still building the service and negotiating with record companies. However, some insiders were willing to share how Apple plans to acquire new users. These methods will include offering trial subscriptions that give users a taste of the experience, letting non-subscribers listen to a select collection of songs that the music owners choose, and providing unique radio stations that reflect local interests. Re/Code noted that the free radio stations could be what DJ Zane and the other BBC One employees that Apple recently acquires will manage.
But why isn't Apple adopting a similar model to Spotify's unlimited free streaming service? It might be because it isn't a viable model. "In private meetings with label executives and other music industry figures, Apple has been arguing that free streaming won't generate enough money for the industry via advertising, and doesn't give enough people incentive to pay for subscriptions," Re/code reported.
There seems to be a lot of evidence supporting this thesis. Spotify and Youtube may have strong audiences and market shares, but they have not made a profit in a long time.
Apple's leadership has resisted the increasing market for a while. Steve Jobs spent a lot of his time ignoring the rise of music streaming services and focused more on iTunes' development. In contrast, current Apple CEO Tim Cook seems to be more open to the streaming service. After all, he did pay more than $3 billion to acquire Beats' headphones and music streaming service.
Apple will announce the new music streaming service during its developer's conference on June 8.
