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Apple Pushing for $5 Beats Music Subscriptions as Spotify Debuts Discounted Family Plan
The logic of Apple’s argument, relayed by people who’ve heard the pitch secondhand: Apple’s best iTunes buyers spend about $60 a year on downloaded music — $5 a month. So if subscription services dropped that low, any download buyers that switched over to the streaming model would generate just as much revenue for the music labels. And, more important, the market of potential subscribers would get much larger.Any reduction offered to Apple would be available to other services, making it less likely music industry executives would approve of a 50 percent discount. Re/code notes Apple will more likely meet the music labels in the middle with a monthly fee in the range of $7-8.
While Apple negotiates the terms for its Beats Music streaming service, rival Spotify is upping the ante with a new Spotify Family plan. Similar to Rdio's Unlimited Family plan, Spotify Family allows a premium subscriber to add up to four additional members for $4.99/month each, a 50 percent discount off the regular $9.99 individual premium plan. Spotify announced the family plans today and will roll then out globally in the coming weeks.