Sony Confirms Apple Will Unveil New Music Service Tomorrow
A Sony executive has confirmed that at tomorrow’s World Wide Developers Conference, Apple will at last unveil its new music service. According to Venture Beat, Sony Music CEO Doug Morris said during an interview that Apple would indeed show off its new streaming music service tomorrow.
The Sydney Morning Herald said that Morris did not mention any specifics about the features of the service during his interview. Whatever Apple may or may not have up its sleeve will be revealed during the WWDC keynote tomorrow.
When asked what Apple brought to the music streaming market, Morris brought up the fact that Apple already has millions of paying iTunes customers. He went on to take a jab at Spotify, who has a massive library of on-demand music available to users for free. Spotify users can either pay a subscription fee or endure advertisements and the inability to stream on-demand while on mobile devices.
“Well, they’ve got $178 billion dollars in the bank. And they have 800 million credit cards in iTunes. Spotify has never really advertised because it’s never been profitable. My guess is that Apple will promote this like crazy and I think that will have a halo effect on the streaming business.”
As Mashable reported, Apple’s upcoming service will be available in two price tiers. The free option will offer an experience similar to that of iTunes Radio, while the paid version will allow users on-demand streaming. It’s anyone’s guess how many iTunes users will pay the $10/month subscription fee with free alternatives still available.
“My guess is Apple will advertise, that they’ll make a big splash. I think the result of this will have a halo effect on the streaming business. All the companies will benefit, a rising tide lifts all ships.”
The Inquisitr previously reported that Apple’s streaming service is expected to bring nothing new to the market. There are already many options available for those looking to stream music on-demand. Apple’s choice to charge a subscription fee for its service will almost ensure the service has a small number of users.
Apple’s biggest competitor will be Spotify. As Bloomberg notes, Spotify has over 60 million users with a quarter of them paying the $9.99/month fee. For users to leave Spotify for Apple, they would need an incentive, and a $10/month fee may not be the best one.
Still, Apple has a way of changing industries for its benefit. In a few years, free music streaming may be a thing of the past thanks to the Cupertino giant.
