Apple Start To Crank Up Beats Music
A new reports reveal that Apple who are currently launching the Apple Watches has approached Taylor Swift and Florence and the Machine in an effort to sign them up to their Beats Music line up.
Apple purchased Beats Electronics’ headphones and music streaming arm for US$3bn in May last year, and reports have since emerged that Apple is set to take on rival service Spotify who are currently looking to raise additional capital ahead of a battle with Apple
The artists are among 12 or so groups and musicians the company is said to have discussed limited streaming rights to tracks with, sources told Bloomberg.
Swift famously pulled her back catalogue from streaming service Spotify in November last year, saying: “It’s my opinion that music should not be free.”
Consumers are increasingly opting to pay for subscription services over downloading individual’s tracks or albums. Music subscription revenue increased 50 per cent to $1.1 billion in 2013, while downloads declined by 2 per cent in the same period.
Beats Music boasts around 250,000 paying customers in the US (it is not available in the UK), while rival service Spotify has over 10 million subscribers worldwide.
Rapper Jay Z, Beyonce and Rihanna attended the launch of rival high-quality service Tidal last month, which offers subscription services for $9.99 or $19.99 per month.
Tidal is offering a mix of stock and cash to its owners for promotional support, which does not include rights to the music, the Financial Times reported. One partner was apparently offered $3 million for a 3 per cent stake.
Jay Z suggested that Apple’s Jimmy Lovine, co-founder of Beats, attempted to lure artists away from Tidal with lucrative contracts in an interview with Billboard.