Apple Expected to Fine-Tune its Music Service
As the WWDC excitement continues, we can see that Apple is expected to make new announcements of its breakthrough in technology. The tech giants always make new disclosures at the Worldwide Developers Conference and this year, we hope to see the company’s new revamped streaming service, against the likes of Spotify and Pandora.
Apple’s acquisition of Beats for $3.2 billion had a reason last year in May. We can now see what the reason was. The company’s new streaming music service- Apple Music- will be based on the service of Beats Music. Explaining how Beats will reshape Apple’s digital music, the company has made a musician the main man for overhauling the music streaming service. Trent Reznor, frontman of Nine Inch Nails, who was the chief creative officer for Beats, had been playing a major role in designing the music app, along with two other Apple employees.
Sony Chief Executive, Doug Morris, who also shares a long history with Beats Co-Founder and Apple Music Boss, Jimmy Iovine, announced ‘It’s happening tomorrow’ to the audience at the Midem Music Conference in Cannes.
Apple plans to retain the idea of asking people their favourite genres of music when signing up. Not much detail was revealed by Morris, but it is expected to be priced at $9.99/month for individuals and $14.99/month for the family plan with a three-month free trial period with ads. Morris said that Apple’s entry into the paid subscription market would majorly shift the industry from downloads to streaming.
What does Apple bring to this? Well, they’ve got $178 billion dollars in the bank. And they have 800 million credit cards in iTunes. Spotify has never really advertised because it’s never been profitable. My guess is that Apple will promote this like crazy, and I think that will have a halo effect on the streaming business.
If the service is stashed along with the upcoming iOS 9 and is being offered for a free trial, this could guarantee millions of customers for Apple.
While iTunes had changed the way music was sold, the new streaming service will help Apple build an exclusive relationship with artists and labels. Apple has been approaching big name artists reportedly, like Taylor Swift, to sign up to guest DJ on a revamped iTunes Radio service, or enter into an exclusive streaming partnership.