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Apple’s Spotify killer won’t be as cheap as we hoped

Published Mar 11th, 2015 5:10PM EDT
Beats Music Vs. Spotify Pricing
Image: Screenshot | Beats Music

With Apple reportedly planning to roll out an iTunes-integrated and revamped version of Beats’ music streaming service at WWDC later this year, a new report from Billboard suggests that Apple’s on-demand music service won’t be as cheap as many initially hoped.

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Despite Apple’s reported efforts to undercut Spotify’s $9.99/month rate, it appears that the record labels are refusing to budge.

Negotiatons for Apple’s upcoming subscription service are evidence labels are standing firm on pricing. Industry sources say Apple has backed down from its effort to lower monthly pricing for its subscription service to $7.99 from $9.99. Apple would have to absorb the loss if it sets a price lower than the standard $9.99.

Previously, various reports indicated that Apple is hoping to undercut Spotify by offering a similar service for just $5 a month. More recently, 9to5Mac relayed that Apple has been eyeballing a $7.99 pricepoint.

Additionally, it’s worth noting that Apple’s music service, in stark contrast to Spotify, will reportedly not offer a free tier of music for users.

Yoni Heisler Contributing Writer

Yoni Heisler has been writing about Apple and the tech industry at large with over 15 years of experience. A life long expert Mac user and Apple expert, his writing has appeared in Edible Apple, Network World, MacLife, Macworld UK, and TUAW.

When not analyzing the latest happenings with Apple, Yoni enjoys catching Improv shows in Chicago, playing soccer, and cultivating new TV show addictions.


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