Apple is rumored to relaunch their music streaming service later this year and one of the ways Apple is hoping to make their service competitive is by charging users $5 a month to subscribe to it, thus making it cheaper than other services out there, or at least on par. However it turns out that Apple’s plans might have been met with some resistance by the record labels.
According to reports, record labels have reportedly resisted Apple’s plan to price their music streaming service at $5. In fact during the negotiations, the record labels apparently said that they would not allow Apple to price their service below $9.99. If Apple wanted to price it lower, they would have to absorb the difference which would basically be a loss for them.
What this means is that ultimately Apple’s new music service could end up being priced at $9.99 or even higher, although the latter seems unlikely. However perhaps to make up for it, the report adds that Apple is hoping to get hooked up with more exclusive content which will be negotiated by Jimmy Iovine.
In any case take it with a grain of salt for now, but hopefully we will learn more about Apple’s new streaming service in the coming months. In the meantime would you be willing to pay $9.99 a month to access Apple’s music streaming service?
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