Apple Urging Music Labels to Stop Licensing Free Songs on Spotify and YouTube

Apple has been leveraging its power within the music industry in an attempt to push music labels to stop licensing freemium tiers offered by Spotify and other streaming music services, according to The Verge. The company has also reportedly offered to pay YouTube's music licensing fee to Universal Music Group if the label stops allowing its songs on the website, a popular destination for music videos.

The report claims that U.S. Department of Justice officials are looking into Apple's business practices in relation to its upcoming streaming music service, expected to be a rebranded version of Beats Music that will debut at WWDC next month. "DOJ officials have already interviewed high-ranking music industry executives about Apple’s business habits," the report claims.

Apple's much-rumored Beats streaming service would naturally be a more competitive alternative over two of its biggest rivals in Spotify and YouTube if it successfully convinces music labels to force streaming services to ditch their freemium tiers. Apple's service is expected to have lots of exclusive content, and only about one-quarter of Spotify's 60 million customers have paid subscriptions.

Apple faces a similar probe from the European Commission over concerns that it's persuading labels to abandon free, ad-supported services such as Spotify in Europe as well. Apple's own Beats streaming service will reportedly not offer a free tier, requiring customers to pay a recurring fee of around $9.99 per month, similar to paid tiers offered by Spotify, Rdio and Google Play Music.

Apple's Beats-based streaming music service will reportedly be deeply integrated into iTunes on Mac and the stock Music app for iPhone, iPad and iPod touch, and apps will also be available for Apple TV and Android. Last month, the company seeded iOS 8.4 beta to developers with a redesigned Music app featuring a new MiniPlayer, a redesigned look for "Now Playing," global search capabilities, a streamlined design and more.

Top Rated Comments

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62 months ago
Call me old fashioned, but I would rather just own my music.
Rating: 112 Votes
62 months ago
On the surface, this sounds like a really crappy thing for Apple to do. Maybe people are happy with Spotify, Rdio, etc. and don't want your damn Beats service.
Rating: 109 Votes
62 months ago
Apple is a dick.
Rating: 91 Votes
62 months ago
Yup, sounds like something Apple would do... :cool:
Rating: 53 Votes
62 months ago
Apple wants to stop free music video on youtube ? And also kill spotify?
Noooooo, f that.... I love apple but this is a dick move.
Rating: 46 Votes
62 months ago

Call me old fashioned, but I would rather just own my music.

Call me new fashioned, but I rather listen to unlimited music for half the price of an album with spotlight student pricing per month. $60 a year.
Rating: 41 Votes
62 months ago
**** Apple.

I hope that they get a billion dollar fine if they find out this is true
Rating: 33 Votes
62 months ago
Disgusting that Apple is hindering its competitors, not by competing but by simply using its power as the biggest company in the world.
Rating: 28 Votes
62 months ago

i call bs on this report. this is not something apple will ever do. they will compete with a superior product and service as they always do. if spotify is free or not it won't help them apple will win this war.

Because they never did anything like this with books.
Rating: 26 Votes
62 months ago
Call me cheap, but I'm not paying to stream music.

I listen to FM radio in my car without paying. I watched TV for years without paying.

Charging everyone for music is only going to encourage even more people to get their music from YouTube.
Rating: 24 Votes

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