One week ago while negotiating with record labels before its streaming music service launches our attention has been drawn by Apple to the Justice Department in the U.S.According to a report Apple has asked the record companies to put pressure on rival streamer Spotify to stop offering its free ad-supported tier of service. As the labels hate Spotify’s free tier, they are only too glad to help Apple in its quest. But asking for these favor smack of price-fixing and some other illegalities that the DOJ could end up charging Apple with.
Only 15 million among the 60 million subscribers of Spotify pay for the service. Spotify charges $10 a month for its ad-free option. But it is expected that Apple decides on charging $8 a month for its streaming service that would also include some tunes and artists exclusive to Apple. Ironically, instead of Apple’s hatred of Spotify’s ad-supported free tier of music. There will be some options available to Apple users that will give them free access to Apple’s streaming music service.
Now Apple decided to offer subscribers to its service a free trial of one to three months in length. Apple’s negotiations with the labels will determine how many months of free streaming Apple will offer. It is also believed by Apple to be considering a way to offer consumers to sample some songs without subscribing to the service. But Apple doesn’t really want to give away music for free. According to a new report Apple has also offered to reimburse Universal Music for lost royalties if the latter stops providing music to YouTube.
It is consider that Apple has $180 billion in cash which allows it the luxury to experiment with pricing for its streaming music service. It was also expected that Apple will reveal its new streaming music service next month at WWDC, with the release of iOS 8.4.