Here's How Apple Wants to Beat(s) Spotify

Rumored negotiations between tech juggernaut Apple and major music labels have caused a stir in the music streaming business. Currently, Spotify is the streaming service king, with 10 million subscribers a month. However, a report quoting sources “familiar with the company’s thinking” has indicated that Apple is already opting for an overhaul of current rights and features in order to change its streaming abilities.

While details on what these changes will entail aren’t specified, the major kick is that Apple’s new structure will allow the company to sell music for less than $10 monthly. Currently, Spotify’s streaming services cost sits at $10 a month, the same price offered by Beats Music. However, with Beats acquired by Apple and Apple’s impending structure changes, Apple has the opportunity to offer reduced streaming services to its massive, nearly 1 billion in total, iTunes user population. By acquiring Beats Music and Beats Music streaming app along with it, an extreme importance has been placed upon Apple’s next move; an importance that has been acknowledged by U2’s frontman Bono. The business-savvy singer believes the profit will be dictated by the iTunes population: “[One billion users is] 1/7 of the earth’s population. If 1/10 of those people were to be part of a subscription service like Spotify has, and I’m a huge Spotify fan, at $10 a month… Do the math. That’s a billion a month. That’s $12 billion. That’s bigger than the entire music business coming out of one company.”

Nevertheless, Apple does face some challenges. Beats Music is a user-curated streaming service, and it only has a few hundred thousand users. Furthermore, Apple will have a tough time convincing music labels to lessen their revenue in order to profit in the long run.

Without doubt, Apple has certainly managed to pull some impressive tricks out of its hat in the past but will the company be able to challenge Spotify without its ruthless leader Steve Jobs? Stay tuned over the coming months as this develops.

Words by Tyler Nyquvest