Apple Pushing for $5 Beats Music Subscriptions as Spotify Debuts Discounted Family Plan

beatsAs previously reported, Apple plans to relaunch its recently acquired Beats Music subscription early next year and hopes to offer the service with with a lowered monthly cost. According to new "industry scuttlebut" relayed to Re/code, Apple is pushing music labels to cut streaming music subscription prices in half to $5 per month.

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.

Related Forum: Mac Apps

Popular Stories

Apple CarPlay Ultra instrument cluster themes 01

Apple's 'CarPlay Ultra' Experience Now Available

Thursday May 15, 2025 5:07 am PDT by
Apple today announced that its next-generation CarPlay experience, now dubbed "CarPlay Ultra" begins rolling out today, starting with Aston Martin vehicles. Subscribe to the MacRumors YouTube channel for more videos. CarPlay Ultra is now available with new Aston Martin vehicle orders in the U.S. and Canada. It will also be available for existing models that feature the brand's next-generation ...
Apple CarPlay Ultra instrument cluster themes 01

Apple's CarPlay Ultra Is Here – Does Your iPhone Support It?

Thursday May 15, 2025 5:17 am PDT by
Apple's recently announced CarPlay Ultra promises a deeply integrated in-car experience, but not all iPhone users will be able to take advantage of the new feature. According to Apple's press release, CarPlay Ultra requires an iPhone 12 or later running iOS 18.5 or later. This means if you're using an iPhone 11, iPhone XR, or any older model, you'll need to upgrade your device to access...
iOS 18

Apple Releases iOS 18.5 With New Wallpaper, Screen Time Changes, Carrier Satellite Support for iPhone 13 and More

Monday May 12, 2025 10:06 am PDT by
Apple today released iOS 18.5 and iPadOS 18.5, the fifth updates to the iOS 18 and iPadOS 18 operating systems that came out last September. iOS 18.5 and iPadOS 18.5 come a little over a month after Apple released iOS 18.4 and iPadOS 18.4. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. The iOS 18.5 update has a...
CarPlay Ultra Climate Controls

Apple Says These Vehicle Brands Plan to Offer All-New CarPlay Ultra

Thursday May 15, 2025 8:13 am PDT by
Apple today announced the launch of CarPlay Ultra, the long-awaited next-generation version of its CarPlay software system for vehicles. CarPlay Ultra features deep integration with a vehicle's instrument cluster and systems, built-in Radio and Climate apps, customizable widgets, and more. The interface is tailored to each vehicle model and automaker's identity, and drivers can also adjust...
iPhone 12 Made in India

Trump Tells Tim Cook to Stop Building iPhones in India

Thursday May 15, 2025 2:21 am PDT by
President Donald Trump has asked Apple CEO Tim Cook to halt the company's manufacturing expansion in India, in a potential disruption of Apple's plan to shift iPhone production away from China. "I had a little problem with Tim Cook yesterday," Trump said during his state visit to Qatar, according to Bloomberg. "He is building all over India." "They [India] have offered us a deal where...
apple music

Apple Music Gets New Transfer Tool to Make Switching From Spotify Easier

Wednesday May 14, 2025 5:17 pm PDT by
Apple this week introduced a new feature designed to allow prospective Apple Music users to import their saved music and playlists from third-party music services to Apple Music. The feature is either in an expanded testing phase or it has started rolling out, and it is available in Australia and New Zealand according to an Apple Support document. Signs of the transfer option first surfaced...
maxresdefault

Here's the First Real-World Look at Apple's CarPlay Ultra

Thursday May 15, 2025 5:52 am PDT by
The first videos of Apple's CarPlay Ultra experience are now available, providing a never-before-seen look at the long-anticipated iPhone-linked infotainment software. British automaker Aston Martin today shared the first video of Apple's CarPlay Ultra experience in-action, followed by a detailed walk-through of the CarPlay Ultra system on Top Gear's YouTube channel, which provides the...

Top Rated Comments

JBaker122586 Avatar
138 months ago
I wouldn't pay 1 cent per month for it. There's free music everywhere.

Who would buy a loaf of bread when you can just steal it?
Score: 33 Votes (Like | Disagree)
fa8362 Avatar
138 months ago
I wouldn't pay 1 cent per month for it. There's free music everywhere.
Score: 16 Votes (Like | Disagree)
RedOrchestra Avatar
138 months ago
Apple, once again, wringing and stretching the content suppliers BUT holding firm on their profit margins. Pretty soon there won't be any content.
Score: 15 Votes (Like | Disagree)
decimortis Avatar
138 months ago
Who would buy a loaf of bread when you can just steal it?

While I agree with your sentiment, I'm not entirely sure he was talking about stealing music. I'm listening to free music streaming on Songza right now. The odd ad here and there keeps it at an affordable zero dollars per month.

D.
Score: 11 Votes (Like | Disagree)
macduke Avatar
138 months ago
There's no need to steal it. It's freely available and legal. TV too.

Yeah but some of us hate ads. There's nothing like streaming Christmas music on Pandora on Christmas morning and having a mature-rated Trojan condom commercial full of questionable innuendo and "noises" blaring over the speakers. The awkward silence as teens, parents, and grandparents sit around trying not to make eye contact with anyone else in the room is extremely fun and anxiety inducing. If only that would happen again this Christmas. Alas, my brother-in-law now pays for streaming so we're good to go.
Score: 9 Votes (Like | Disagree)
PBG4 Dude Avatar
138 months ago
Wow, the biggest music spenders on iTunes buy the equivalent of a $10 CD every 2 months. I remember buying an album a week in high school! :eek:
Score: 9 Votes (Like | Disagree)