Apple Backs Down on $7.99 Price Point for New Music Service After Meeting Resistance From Record Labels

Amid all of the excitement over the 12-inch MacBook and new pricing details on the Apple Watch, Billboard has shared some new information on Apple's rumored music service.

Initial rumors suggested Apple was hoping to undercut competing services like Spotify on price, offering its upcoming music service for $7.99, but according to Billboard, music labels are said to be highly resistant to pricing under the industry standard of $9.99.

beats-music-app-ios
Due to labels' insistence on the $9.99 price point, Apple is said to have backed down from its aggressive $7.99 pricing goal, suggesting the service may cost subscribers $9.99 per month instead of $7.99 per month.

Negotiations 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.

Apple may not be able to offer a lower price point than competing services, but industry insiders that spoke to Billboard have suggested that Apple is talking to artists and labels about exclusives for key releases that will help it stand out from the competition.

Limited details are available on Apple's new subscription music service, but it's said to be a complete rebranding of the company's existing Beats Music service. It is rumored to be directly integrated into iTunes and it will be platform agnostic -- available on iOS and on Android, through a dedicated Android app Apple is building.

Recent rumors have suggested that Apple will launch its revamped streaming music service in June, during the company's annual Worldwide Developers Conference.

Top Rated Comments

bushido Avatar
119 months ago
this whole exclusive to service xy BS is so stupid. no ones gonna pay for different services that do the same thing. itll just turn poeple to pirating once again. those labels never learn i swear
Score: 12 Votes (Like | Disagree)
H3boy Avatar
119 months ago
Sounds an awful lot like price fixing by the record labels.
Score: 8 Votes (Like | Disagree)
winston1236 Avatar
119 months ago
I'll probably on Spotify forever anyways, at least, until I have to stop paying the Student Price of 4.99 (or whatever it is)

Likewise, too bad the 7.99 price is the only reason I would consider switching.
Score: 7 Votes (Like | Disagree)
JosephAW Avatar
119 months ago
Apple needs to subsidize the $2 price difference and when the others services are out of business then the labels will submit to the new $7.99 subscription pricing.
Score: 6 Votes (Like | Disagree)
teme Avatar
119 months ago
If Apple goes to the 'exclusives for key releases' style, it will hurt all the streaming music services, including Apple themselves. Spotify is forced to follow that same route and a little bit later the selection in music subscription services is too fragmented and has lost its major selling point.
Score: 6 Votes (Like | Disagree)
DakotaGuy Avatar
119 months ago
I suppose Apple feels like giving their customers a good value on a music service after they screwed them over on a watch.:)
Score: 6 Votes (Like | Disagree)

Popular Stories

Provenance Emulator

PlayStation, GameCube, Wii, and SEGA Emulator for iPhone and Apple TV Coming to App Store

Friday April 19, 2024 8:29 am PDT by
The lead developer of the multi-emulator app Provenance has told iMore that his team is working towards releasing the app on the App Store, but he did not provide a timeframe. Provenance is a frontend for many existing emulators, and it would allow iPhone and Apple TV users to emulate games released for a wide variety of classic game consoles, including the original PlayStation, GameCube, Wii,...
iPhone 15 Pro FineWoven

Apple Reportedly Stops Production of FineWoven Accessories

Sunday April 21, 2024 6:03 am PDT by
Apple has stopped production of FineWoven accessories, according to the Apple leaker and prototype collector known as "Kosutami." In a post on X (formerly Twitter), Kosutami explained that Apple has stopped production of FineWoven accessories due to its poor durability. The company may move to another non-leather material for its premium accessories in the future. Kosutami has revealed...
Delta Feature

Delta Game Emulator Now Available From App Store on iPhone

Wednesday April 17, 2024 9:58 am PDT by
Game emulator apps have come and gone since Apple announced App Store support for them on April 5, but now popular game emulator Delta from developer Riley Testut is available for download. Testut is known as the developer behind GBA4iOS, an open-source emulator that was available for a brief time more than a decade ago. GBA4iOS led to Delta, an emulator that has been available outside of...
iPad Air 12

12.9-Inch iPad Air Now Rumored to Feature Mini-LED Display

Thursday April 18, 2024 7:37 am PDT by
The rumored 12.9-inch iPad Air that is expected to be announced in May will be equipped with a mini-LED display like the current 12.9-inch iPad Pro, according to Ross Young, CEO of research firm Display Supply Chain Consultants. The existing 10.9-inch iPad Air is equipped with a standard LCD panel, and the move to mini-LED technology for the 12.9-inch model would provide increased brightness for...