Report: Apple plans to lower Beats Music subscriptions to $5 to take on Spotify

Report: Apple plans to lower Beats Music subscriptions to $5 to take on Spotify

Apple purchased Beats in May for $3 billion, which includes the Beats Music streaming service. Re/code reports that Apple is pushing to lower the price of Beats Music to just $5 per month, half of the cost of its biggest competitor, Spotify. Beats is finding it hard to attract new users, especially since the streaming service doesn’t offer a free version.

Spotify is also lowering prices, announcing a new family plan for the service. The company will start offering a family plan where each new member will cost an additional $5 on top of the base $10 per month single-user subscription. This means a Spotify subscription for two people will cost $15, three people for $20, etc.

Apple wants record companies to consider lowering the subscription price of Beats Music to $5 because that’s how much an average iTunes users spends on downloaded music per month. Apple hopes the lower price will attract more subscribers but record labels have historically been resistant to lowering prices.

Source: Re/code

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