Apple Uses Power In Music Industry To Make Space For Upcoming Streaming Service

Posted: May 5 2015, 6:38am CDT | by , in News | Apple

 

Apple Uses Power in Music Industry to Make Space for Upcoming Streaming Service
 

Apple is persuading the music labels to keep away from renewing Spotify’s license to stream music through its free tier

Everything is fair in love and war. And business is definitely war. Companies are rivals on the battlefield and would make certain that they go to every extent to ensure their survival. Apple is clearly on the road to fighting its competitors and would consider nothing wrong with its initiatives. However, it would need to be careful because the Department of Justice and the Federal Trade Commission have been eying what Apple has been up to regarding its upcoming music streaming service.

Apple is currently trying to secure a place for its upcoming offering and it is doing so by pushing major music labels to force streaming services like Spotify to abandon their free tiers. If this happens, Apple’s competition will dramatically fall. Looks like Apple knows that it holds enough power which can easily influence the industry. It is persuading the music labels to keep away from renewing Spotify’s license to stream music through its free tier.

Though Spotify has a vast consumer base of 60 million, there are only 15 million paid listeners. This means that if Apple influences music labels to kill their free tiers from Spotify, it would be able to grab a huge chunk of customers for its own upcoming streaming service. The new service is apparently going to feature a great deal of exclusive content.

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The Author

<a href="/latest_stories/all/all/32" rel="author">Ahmed Humayun</a>
Ahmed Humayun is a technology journalist bringing you the hottest tech stories of the day.

 

 

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