Apple has pitched to music labels a lower structure for its Beats Music service, arguing that subscriptions could grow considerably if the price could be lowered to around $5 per month.
During negotiations with record labels, Apple has said that its best iTunes buyers only spend around $5 per month on downloaded music, according to a report by Re/code. The iPhone-maker believes that because of that threshold, dropping subscription prices to that level could generate more revenue for music labels.
A Beats Music subscription currently costs $9.99 per month. If users are willing to sign up for a full year, it costs $99.99 for 12 months.
The news, confirmed on Monday, comes the same day as Spotify announced it will start offering new family sharing plans. Though the $9.99 per month base rate for Spotify Premium won't change, new family members can be added for half-price each. This means a two-person subscription with separate playlists and recommendations would cost just $14.99.
Spotify Family will be introduced globally over the coming weeks, according to Re/code. There is no sign that a reduce price for Beats Music will be reaching the public in the near future however, and there is a good chance a $5-per-month price is never introduced.
"A more modest goal would be to get rental music down to the price Netflix charges (some of) its users for rental video: $8 month," Kafka said. "Bear in mind that any price cuts that Apple got would have to be offered to all of its rivals, too."
Apple is also supposedly considering rebranding its Beats Music service, bringing it more closely in line with its other iTunes products. When Apple purchased Beats earlier this year, the company emphasized the Beats Music service was a key component of the blockbuster deal.
The acquisition was a big deal, as it represented a key subscription market where Apple's iTunes Store downloads and iTunes Radio streaming service didn't compete.
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
