Apple in Talks for On-Demand Streaming Music Service, Considering Android iTunes App

ituneslogo.jpgApple is considering launching an on-demand streaming service similar to Spotify in light of declining music sales, reports Billboard. The service would be part of a multi-prong strategy that may also include an iTunes app for Android.

Apple has opened exploratory talks with senior label executives about the possibility of launching an on-demand streaming service that would rival Spotify and Beats Music, according to three people familiar with the talks. Apple is also thinking about adding an iTunes App for Android phones, the Google rival that has been growing faster than the iPhone, these sources said.

In January, it was reported that music sales had declined for the first time since the iTunes Store opened 2003, with individual song downloads falling 5.7 percent from 1.34 billion units sold to 1.26 billion, and digital album sales dropping to 117.6 million units from 117.7 million units.

In recent months, Apple has attempted to lure more customers with exclusive album releases, such as Beyoncé's fifth album, released first on iTunes, and has been pushing record companies for additional deals of that nature.

Album sales have remained down, however, as streaming services have risen in popularity, prompting Apple to explore other options as well. A March report from the RIAA indicated Spotify, Pandora, and YouTube had generated $1.4 billion in subscription, advertising, and licensing revenues in the U.S. in 2013, a 39 percent increase from 2012.

Apple introduced its iTunes Radio streaming music service last year, but it is station-based like Pandora, limiting how many songs users can choose for themselves. An iTunes service similar to Spotify or Beats Music would allow listeners to pick and choose all of their content, which could potentially be accessed on other non-Apple platforms like Android.

"They are feeling out some people at labels on thoughts about transitioning its customers from iTunes proper to a streaming service," says one major label source. "So when you buy a song for $1.29, and you put it in your library, iTunes might send an e-mail pointing out that for a total of, say, $8 a month you can access that song plus all the music in the iTunes store. It's all in the 'what if stage."

Apple's talks with record labels about a possible expansion of iTunes Radio into a full-fledged music streaming service are still in the early stages, and the company has declined to comment.

Top Rated Comments

stuffradio Avatar
98 months ago
:rolleyes::rolleyes::rolleyes::rolleyes::rolleyes:

"iOS SUCKS, APPLE SUCKS, iOS USERS SUCK...

OMG, ITUNES FOR ANDROID?! YESSS!!!!!"

Excuse me while I go laugh.

3.5" is perfect! No, now 4" is perfect! Wait, 4.7" or 5.5" is very nice. Apple always innovates in mobile device sizes!

Excuse me while I go laugh.
Score: 8 Votes (Like | Disagree)
Yogomi Avatar
98 months ago
Enough with the streaming music services. We need a streaming television service that includes AMC, Comedy Central, the likes and premium offerings similar to HBOGO.

-Y.
Score: 8 Votes (Like | Disagree)
Gigaman Avatar
98 months ago
3.5" is perfect! No, now 4" is perfect! Wait, 4.7" or 5.5" is very nice. Apple always innovates in mobile device sizes!

Excuse me while I go laugh.
Lol no one said 4 inches was perfect or that Apple innovates in screen sizes. Ever.
Score: 7 Votes (Like | Disagree)
screensaver400 Avatar
98 months ago
Apple released iTunes for Windows to sell iPods to Windows users. The iTunes Store has never been a meaningful business on its own---it's always existed to sell Apple hardware.

I doubt Apple is seriously considering iTunes for Android, because it would completely undermine the whole point of iTunes. More likely is that a music executive proposed the idea in negotiations, and Apple agreed to consider it. If Apple does release iTunes for Android, it will signal a major strategy shift: away from hardware, and toward services.
Score: 5 Votes (Like | Disagree)
Sky Blue Avatar
98 months ago
Spotify like service would be great, don't get a lot of use out of iTunes Radio as it is.
Score: 5 Votes (Like | Disagree)
Dr McKay Avatar
98 months ago
:rolleyes::rolleyes::rolleyes::rolleyes::rolleyes:

"iOS SUCKS, APPLE SUCKS, iOS USERS SUCK...

OMG, ITUNES FOR ANDROID?! YESSS!!!!!"

Excuse me while I go laugh.
Not the point I'm trying to make.

The same people who criticize Apple for everything, who refuse to use Apple products, who throw names at those who use iOS and/or Macs, are going to turn right around and become Apple customers.
Your mistake is assuming it's all the exact same people making those comments and then turning around. You're also insinuating disliking an OS as a whole means you have to dislike each and every aspect.

So unless you can find examples here of specific people saying "The iTunes Music store sucks!" and then posting "Yay iTunes for Android"?
Score: 4 Votes (Like | Disagree)

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