Apple Said to Integrate Beats Music with iTunes As Music Sales Drop
Apple’s iTunes has been one of the main sources of revenue for the recording industry during the past decade, but the online retailer of songs and albums is currently seeing a drop in music sales. The streaming music services, like Spotify and Rdio, are to blame for this decline in digital music sales. After all, why would someone buy when they can opt for a $10 month subscription which gets them basically all the music in the world?
Music sales at iTunes Store have fallen 13% to 14% so far this year, which is even worse than last year, when global revenue from downloads fell 2.1%. Given the plummeting download numbers, Apple’s acquisition of Beats starts to make more sense.
Apple purchased Beats Electronics for a whopping $3 billion earlier this year. While most people associated the deal with Dr. Dre’s premium headphones and speakers, it seems like Beats Music might have been the main factor in Apple’s decision to cough up such a huge sum.
According to The Wall Street Journal, Apple plans to integrate the newly-acquired Beats Music with its hugely popular iTunes Store. Citing people familiar with the matter, the Journal reported on Friday that Beats Music will relaunch next year as part of iTunes, and the announcement is likely to occur in the early stages of 2015.
There have also been reports that Apple is considering to cut the subscription price of its streaming music service to $5 per month. Currently, Beats Music charges $9.99 per month on a monthly basis, or $99.99 if you subscribe for a full year.
Apple launched iTunes Radio last year, which gave users a free way to listen to music, but the service didn’t hit heights the company expected it to be. Beats has, however, offered a couple of rather unique features, such as hand-picked playlists, for its streaming service to stand out of the crowd. With the integrated service, Apple will definitely be hoping to compete against the big players in the streaming game.
The report follows earlier rumor that claimed that Apple may ditch the Beats Music brand altogether. What are your thoughts on these rumors? Sound off in the comments below.