WSJ: Apple pricing music service at $10/month, updating iTunes Radio
Jun 1 2015, 15:18 ET | About: Apple Inc. (AAPL) | By: Eric Jhonsa, SA News Editor Contact this editor with comments or a news tip
Apple (AAPL +0.4%) is expected to unveil its new subscription music streaming service (a revamped version of the existing Beats Music service) at the June 8-12 WWDC conference, the WSJ reports.It adds the service will be priced at $10/month, on par with Spotify and many other rival services. Prior reports indicated Apple was hoping to undercut rivals, potentially by charging ~$8/month. A 9to5 Mac report also stated the service would be offered through both the iOS Music app and a standalone Android app (the first developed by Apple).Also: Apple plans to update its iTunes Radio service (available either on a free/ad-supported basis, or for $25/year ad-free via iTunes Match) to include “channels programmed and hosted by human DJs.” Pandora (P -2%) has fallen moderately in response.Apple reportedly hasn’t yet reached licensing deals for the subscription service with Universal Music, Sony, and Warner Music, but the WSJ adds “many in the music industry expect such deals soon.”Nielsen SoundScan estimates paid U.S. music downloads of albums and songs respectively fell 9% and 12% in 2014, and that streaming usage rose 54%. The WSJ’s music industry sources estimate Apple accounts for 80%-85% of global paid music download sales.