Apple is considering a price drop for its streaming music service, reports Digital Music News. The outlet cites multiple sources claiming that if implemented, the drop could be as much as 20%, lowering individual plans to $7.99 and the family plan to $12.99.
The sources are not inside Apple, but have been working closely with the Apple Music service since its launch. They also emphasized that the changes are still under discussion, albeit ‘under serious discussion’. Still, there are valuation debates underway, and the price chop may not be implemented.
The move could come as soon as this Christmas, and possibly start with a holiday promotional discount. Currently, Apple offers a three-month trial window for users, which automatically rolls into the $9.99 monthly tier. That formula would be altered, with those subscribing before Christmas enjoying the slashed rate by March or April.
The report adds that if Apple were to drop its prices, it would have to eat the difference. In other words, labels aren’t going to subsidize their fees. Apple, of course, has the resources to easily pull this off and it would put pressure on the cash-strapped Spotify.
At its September iPhone event, Apple announced that Apple Music has 17 million paid subscribers. Spotify has 40 million paid users. Earlier this month, Amazon entered the fray with its own streaming music service featuring plans starting at just $3.99/month.
Source: Digital Music News