Apple Plans to Merge Beats Music into iTunes
With digital music sales from its cash cow iTunes down nearly 14 percent since the beginning of the
With digital music sales from its cash cow iTunes down nearly 14 percent since the beginning of the year, thanks in part to services like Spotify and Rdio, the WSJ reports Apple is planning to merge the newly acquired Beats Music into iTunes. The music streaming service currently hosts only 250,000 paid subscriptions, while iTunes has 800 million users and 400 million credit cards on file. So, rather than revamp the one as a separate service, Apple will roll it right into its mainstay as an added selling point for other high-margin products, such as the iPhone, the iPad, and its selection of personal computers. Combine iTunes’ preexisting user base and Apple’s resources with a cheap monthly subscription, this forthcoming streaming service may be a tough one to compete with.
