With Apple’s recent acquisition of the Beats, they are pegging Trent Reznor to lead the relaunch of Beats Music, as to compete with Spotify. The $3 billion cost of Beats, which is best known for the headphones and earbuds, left everyone wondering what would happen with Beats Music.
Apple initially wanted to sell a subscription to Beats Music for $8 a month, $2 less than Spotify, but failed in their efforts to get music labels to lower the cost to license the music they wanted. This shows the shift from paid downloads to streaming services, which Apple has been best known for. In a statement to the New York Times, Toni Sacconaghi, a financial analyst for Sanford C. Bernstein, said:
“They’re used to being a shaper rather than a responder. This is one of the few times where Apple is playing catch-up and not necessarily coming from a position of strength.”
Source: TweakTown
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