Finally cheaper? Apple Music should get a cheap entry-level subscription
Cheaper, ad-financed and limited: Apple Music is apparently planning a major change in strategy. New discoveries in the Android beta show clear warnings for users who skip too many songs. The attack on Spotify is gaining momentum.
Notes in the Android beta
According to a discovery, Apple is working on new pricing models for its streaming service Apple Music. In the current beta version of the Android app, developer Aaron Perris discovered text passages that indicate additional subscription levels. Accordingly, users could be asked to take out a premium subscription after skipping a certain number of titles. Restrictions on skipping songs are common in the industry. Free or cheaper tariffs in particular often limit the number of songs that can be skipped, around six per hour.
An adjustment to the previously exclusively paid offer could help Apple to position itself more broadly in the market.
Competition in the market
A report from 9to5Mac according to the findings, the findings allow for several interpretations. In addition to a cheaper or free tariff, the restrictions could also only apply to certain radio functions. Apple also offers its service for Android to reach users outside of its own ecosystem. Market leader Spotify has more than 700 million users, Apple Music has around 100 million subscribers. Spotify offers an ad-supported plan with restrictions on selection and audio quality. Apple Music has so far relied on a payment model with lossless audio and 3D audio as standard. In the USA, the ad-free Spotify subscription currently costs 12.99 US dollars (around 11 euros) per month, Apple charges 10.99 US dollars (around 9 euros). A cheaper tariff could strengthen Apple’s competitive position.
Possible strategy change
An advertising-financed model would mean a change in strategy. Apple Music boss Oliver Schusser recently said that free offers were not a good idea in the music industry. He emphasized that the service deliberately forgoes this. A cheaper tariff could open up new target groups. It is unclear when Apple will present corresponding offers. A possible date is the WWDC developer conference in June, where the company usually presents new software and services.
