Apple Is Not Shutting Down Beats Music, But Could Modify It

Reports that Apple is shutting down the streaming service Beats Music emerged earlier today. However, a representative of the Silicon Valley giant has told TechCrunch that the report “is not true.” While sources familiar with the situation state that Apple “may, however, modify [Beats Music] over time, and one of those changes could involved changing the Beats Music brand.” Reports now suggest that it’s more likely that Apple will take the Beats Music technology and incorporate it into iTunes or iTunes Radio. Shutting down Beats Music would be surprising since just incorporated Beats Music into Apple TV, its set-top box, and Apple CEO Tim Cook recently told Charlie Rose that he was so impressed with Beats Music that he “couldn’t sleep” after listening to it for the first time.

It is likely that Apple is looking for the right strategy to move its music business from the download to the streaming era. Digital music sales fell 13.3 percent in 2013, while U.S. streaming grew 32 percent. With streaming surpassing downloads in numbers, Apple will have to make a shift.