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11/21/2024 12:43:52 pm

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Apple Courting Artists for Exclusive Deals on Beats Music

florence-and-the-machine

(Photo : Reuters) Apple is looking to add exclusive music onto Beats Music, including the new Florence and the Machine album.

Apple is planning to offer exclusive deals on its Beats Music streaming service when it relaunches in the summer. The iTunes owner is speaking with dozens of artists, including British indie rock band Florence and the Machine for exclusive album launches.

Similar to Jay Z's Tidal service, Apple is planning to offer exclusive music for a few days or potentially long term in some cases, taking artists away from Spotify, Rdio and Tidal. This would be the first big move to cut out the competition through higher streaming rates.

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It looks to be where the industry is going due to unrest on the label and artist side of the fence. Streaming revenues have only just hit $2 billion and the overall music industry made $15 billion in 2013, less than half of the $40 billion made in 1999.

Apple's Beats Music and Tidal both offer no freemium plan like Spotify -- which is used by three quarters of its 60 million users. This has enticed artists like Taylor Swift, Adele and other artists that do not like the freemium model.

The big difference between Jay Z and Apple is Beats Music will not be "co-owned" by several artists. Instead, Apple is likely to offer excellent rates -- perhaps sinking its own profit into Beats Music -- to entice artists looking for better streaming services.

Apple also has a massive user base of iPhone, iPad, Apple Watch and Mac OS X users, alongside 500 million iTunes accounts. These huge numbers might interest labels that don't want to work with Tidal due to the low amount of subscribers -- currently less than 100,000.

Beats Music will be a separate service from iTunes and iTunes Radio. It's not clear if Apple will rebrand the music service to fit with iTunes. Apple has not updated iTunes Radio since it launched the service in 2013 so we might see some kind of merger.

Apple will charge $9.99 per month for the single package and $14.99 for the family package, according to people familiar with the matter. Earlier reports, however, claimed Apple had one-upped other services with a $7.99 per month price-tag.

Expect to hear more news at WWDC, Apple's developer conference in June. The secret internet TV service should also be announced at the conference alongside our first look at iOS 9 and whatever Apple decides to call the next update to OS X.

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