In the background are is still Apple, which bought the Beats Music for $ 3 billion in May last year by another rapper, Dr. Dre. Slowly but surely seeping details out about Apple’s plans for the upcoming launch of a new music streaming service, writes CNBC.
It is clear that Apple has appointed a famous musician, Nine Inch Nails frontman Trent Reznor, be responsible for the new design of musikappen in collaboration with Apple’s own staff and former record company mogul Jimmy Iovine.
The app will according information from people familiar with the work among much else to contain so-called ” Cured “playlists (where someone else made a personal choice) and a” more alive “visual expression combined with Apple’s usual minimalist design. The name “Beats Music” is also likely to be replaced before the relaunch.
An important part of the new service is that many major album release will be offered exclusively. There, Jimmy Iovine, as being the heavyweights in the industry, Apple won the contract to try and secure as many contracts as possible.
Relatively clear is also to the upcoming streaming service will not be cheaper than its competitors – Apple initially wanted to offer the service for about 8 dollars per month, but it refused the major record companies agree. Therefore, the price seems now to be the same as that of the United States for competitors such as Spotify and Pandora: about 10 dollars a month.
Apple did not get indulged in terms of price seen by many as a sign that the company has lost much of its leverage in negotiations with the music industry. As long as the sales of music files via iTunes, the dominant revenue for record companies could Apple dictate terms, but the flow hand, the increasing competition that Apple becomes more of a player in the crowd.
According to Toni Sacconaghi, analyst at Sanford C. Bernstein, the price battle a result of Apple come in so late on the market for streaming music.
“They are accustomed to dictate rather than to answer. This is one of the few occasions where Apple is trying to catch up on other people’s head start, and does not come from a strong position, “he told CNBC.
That Apple finally gives to enter the market Streaming services depends largely on constraints. According to the organization RIAA, Recording Industry Association of America, reduced sales of downloaded music in the United States by 8.5 percent last year, while the streamed music revenues rose by 29 percent and rapidly approaching revenues for download.
Sanford C. . Bernstein notes in his analysis that even if the streaming service is important for Apple, does it still a relatively modest role in the company’s total revenue.
About the Apple service would get as much revenue as, for example, Pandora, the American radio streaming service that constant parks among the most downloaded apps for the iPhone in the US, it would pull in about $ 1 billion per year. It would then correspond to around half a percent of Apple’s total revenue.
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