Apple is supposedly considering a price drop for its music streaming service, according to two sources that talked to Digital Music News. The sources cited in the report are not with the company; however, they have worked closely with the streaming service since its release.
Price drop may be a one-time deal
Digital Music News reports that the iPhone maker might lop about 20% off the current subscription pricing. According to the report, the rollout of the new prices could start as soon as December as part of a “holiday promotional discount.” The student rates that are $4.99 a month will reportedly stay the same, while the family and regular plans will reportedly see a price drop. The price drop will see family plans going from $14.99 to $12.99, while the regular plan will go from $9.99 to $7.99, according to the website’s sources.
According to AppleInsider, the wording on the report implies that the pricing launch will be a one-time deal, meaning that the consumers who sign up during the aforementioned holiday promo period will keep the discounted pricing as long as they continue monthly payments. Existing subscribers might be transitioned to the lower rate if it becomes permanent, while users who signed up for the standard three-month trial window will be switched to the new rate automatically. The details are not clear right now because nothing official has been announced.
The following is our rough coverage of the 2021 Sohn Investment Conference, which is being held virtually and features Brad Gerstner, Bill Gurley, Octahedron's Ram Parameswaran, Glenernie's Andrew Nunneley, and Lux's Josh Wolfe. Q1 2021 hedge fund letters, conferences and more Keep checking back as we will be updating this post as the conference goes Read More
The new prices would assist Apple Music in matching Amazon’s new Music Unlimited service. The Music Unlimited service is $7.99 per month for Prime subscribers. Also Amazon’s streaming service offers a $3.99 per month plan for consumers who own an Amazon Echo device.
Will Apple drop the the price?
Dropping the price of its music streaming service could potentially trim $2 off the going rates of both the family and individual plans by the holiday season. The publication did note that the cuts may not materialize and “serious discussions” are ongoing within the tech giant.
The Digital Music News report must be taken with a grain of salt. In May, it reported that the iPhone maker planned to close down iTunes Music downloads within two years. In response, the smartphone making giant said the report was not true. The website also reported a month later that new sources had come forward and claimed that the tech giant would end music downloads in the future. The publication cited sources at that time as well and said the monumental change would occur in “the next 3-4 years, maybe longer” or “within two years.”