1. Akshay Masand's Avatar


    Apple’s iTunes Store sales seem to have fallen significantly so far in 2014 which has been a deciding factor for the Cupertino California company to push forward with plans to revamp Beats Music and combine it with the iTunes brand. The Wall Street Journal recently reported that sales from Apple’s iTunes Store have fallen between 13% and 14% so far this year, a number which is far worse than that of last year where music downloads fell 2.1%.

    The report continued by reaffirming a previous rumor which stated that Apple may be looking to end the Beats Music brand and repackage the acquired service. The revamped service is said to be more aligned with other first party offerings such as iTunes Radio and the iTunes Store. Beats music is said to relaunch early next year after being rebuilt and integrated into iTunes.

    The report comes right around the time another rumor claimed that Apple is looking to cut the price of its subscription music service to $5 per month. Currently, Beats Music costs $9.99 a month or $99 if users sign up for a full year.

    The previous acquisition of Beats Music represented Apple’s entrance into a subscription market, an area where Apple’s iTunes Store and iTunes Radio didn’t compete in. The subscription Beats Music service allows on-demand streaming of both tracks and albums as opposed to the randomized nature of iTunes Radio. With streaming becoming increasingly important in the music industry, users who previously purchased music tend to be migrating to services such as Pandora and Spotify. Once Apple revamps the Beats Music service, it should theoretically become a heavy competitor in the space. Ultimately we’ll have to wait and see.

    Source: The Wall Street Journal via AppleInsider

    Twitter: @AkshayMasand
    2014-10-25 11:49 PM
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