Apple Asking Music Labels to Cut Prices on Music Streaming Subscriptions

beatsApple is asking music labels to cut prices on music streaming subscription services so that it can offer its new, revamped Beats Music service for less than $10 a month, reports Re/code. The Cupertino company is also looking to add new features to the service.

Sources say Apple is talking to the big music labels about a new set of rights and features it would like to include in a revamped version of the Beats Music service it bought earlier this year. Among the things Apple wants is a new pricing structure that would allow it to sell the service for less than the $10 level it’s at now.

Apple isn't planning on overhauling Beats Music until next year, and discussions with music labels are in early stages. In late September, it was rumored that Apple was planning on introducing a revamped Beats Music in early February, presumably timed to debut alongside the Grammy Awards on February 8.

The company has tried to undercut competitors with music rates before, trying to pay half the royalty rate that Pandora paid while in negotiations for what would become iTunes Radio in early 2013.

Re/code notes that music executives were once worried about streaming services cannibalizing CD music sales but eventually agreed to deals with streaming services, which some music industry observers feel is priced too high as the market for consumers who want to pay $10 a month to stream music is limited. In August, a report from Midia Research suggested only 25 percent of consumers pay $10 for music every three months.

Popular Stories

ios 19 messages app

Apple Sues Jon Prosser Over iOS 26 Leaks

Thursday July 17, 2025 8:40 pm PDT by
Earlier this year, YouTuber Jon Prosser shared multiple videos showing off what he claimed to be re-created renderings of what was then presumed to be called iOS 19 and which was eventually unveiled by Apple as iOS 26 at WWDC in June. In his first video back in January, Prosser showed off a Camera app redesign with a simpler set of buttons for moving between photo and video modes, and he...
iOS 26 on Three iPhones

Here's When to Expect the iOS 26 Public Beta

Tuesday July 15, 2025 11:07 am PDT by
Apple previously announced that a public beta of iOS 26 would be available in July, and now a more specific timeframe has surfaced. Bloomberg's Mark Gurman today said that Apple's public betas should be released on or around Wednesday, July 23. In other words, expect the public betas of iOS 26, iPadOS 26, macOS 26, and more to be available at some point next week. Apple will be releasing...
iPhone 17 Colors

All 15 New iPhone 17 and iPhone 17 Pro Colors Revealed in Latest Leak

Wednesday July 16, 2025 6:50 am PDT by
We may finally have a definitive list of all color options for the iPhone 17 series, ahead of the devices launching in September. MacRumors concept In a report for Macworld today, Filipe Espósito said he obtained an "internal document" that allegedly reveals all of the color options for the upcoming iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max models. The report includes ...
iPhone 17 Pro Dark Blue and Orange

Ranked: The Best Features Rumored for the iPhone 17 Lineup

Wednesday July 16, 2025 4:17 pm PDT by
We have just under two months to go until the debut of Apple's iPhone 17 models, and rumors have been ramping up in recent weeks. We went through everything we know so far, pulling out the most exciting rumors and highlighting some other changes that aren't going to be so great. Top Tier Ultra Thin iPhone 17 Air - The iPhone 17 Air is 2025's most exciting iPhone rumor, because it's the...
Foldable iPhone 2023 Feature Homescreen

Foldable iPhone's Thickness and Price Range Detailed in New Reports

Wednesday July 16, 2025 11:31 am PDT by
Apple's long-rumored foldable iPhone will likely have a starting price between $1,800 and $2,000 in the U.S., analysts at investment banking firm UBS said this week. If so, the foldable iPhone would cost more than a MacBook Pro, which starts at $1,599. With a starting price of at least $1,800, the foldable iPhone would be the most expensive iPhone model ever released, topping the Pro Max at...
Apple Watch Ultra 2 Complications

Apple Watch Ultra 3: What to Expect

Sunday July 13, 2025 10:30 am PDT by
The long wait for an Apple Watch Ultra 3 is nearly over, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the Apple Watch Ultra 3:Satellite connectivity for sending and receiving text messages when Wi-Fi and cellular coverage is unavailable 5G support, up from LTE on the Apple Watch Ultra 2 Likely a wide-angle OLED display that ...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 16 New Features

Friday July 11, 2025 12:40 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are only two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:A redesigned Dynamic Island: It has been rumored that all iPhone 17 models will have a redesigned Dynamic Island interface — it might ...
Apple Hornsby

Apple Store Near Sydney Permanently Closing Later This Year

Monday July 14, 2025 6:14 pm PDT by
Apple today said its store at the Westfield Hornsby shopping mall, in Hornsby, Australia, will be permanently closing in October. Apple Hornsby In a statement shared with Australian tech news website EFTM (via Reddit), Apple said that it has decided not to renew its lease at Westfield Hornsby. Apple said all affected retail employees will be given the opportunity to work at Apple's nearby...

Top Rated Comments

farewelwilliams Avatar
141 months ago
"ok Apple, sure."

*goes to artists*

"hey umm..you guys will now get nothing. kthx"
Score: 25 Votes (Like | Disagree)
kwikdeth Avatar
141 months ago
the race to the bottom accelerates. its a wonder anyone even tries to make a living on music anymore.
Score: 24 Votes (Like | Disagree)
KieranDotW Avatar
141 months ago
It still boggles my mind when people justify illegal downloading because of how much money the label takes. Sure it's bad, but I'd rather have the artist get something than literally nothing.
Score: 23 Votes (Like | Disagree)
Moonlight Avatar
141 months ago
The idea of Music labels is so antiquated. Music creators shouldn't need labels anymore. They are worthless middlemen.
Score: 22 Votes (Like | Disagree)
subsonix Avatar
141 months ago
The idea of Music labels is so antiquated. Music creators shouldn't need labels anymore. They are worthless middlemen.

You underestimate the work, skill and money needed to successfully record and launch an artist. You may be a great artist, but suck at the administrative part, having someone taking care of that for you enables you to concentrate on exactly what you are good at.
Score: 18 Votes (Like | Disagree)
gate5blues Avatar
141 months ago
Streaming Model Screws Artists

Honestly, most streaming services are already only paying artists just more than 1 penny a play... That means you as a listener would have to listen to that song 70 times to give the artist even close to the 70 cents they make on 99 cent download today.

Take a look at your iTunes play count for the most popular song in your library and you'll get a good idea of why this is bad for the artists... and ultimately the Listener and Apple (if they aren't paying artists well).

I know many artists who are starting to shun the streaming model for services such as BandCamp and are ultimately making more money because of it...

Apple, please don't undercut artists. Pay them what they are worth and value the arts.
Score: 18 Votes (Like | Disagree)