Apple and Beats are to go into direct competition with Spotify by developing a new streaming service. Apple is also planning to revamp and relaunch iTunes Radio, with Zane Lowe taking a figurehead role at a project designed to resemble a conventional radio station.
The New York Times reports that Apple and Beats are working on a subscription streaming service, with Trent Reznor of Nine Inch Nails taking a key role in redesigning the company’s music app. The Times reported that Apple had tried to persuade record labels to lower their licensing costs for music, which would have allowed the company to undercut other streaming services. However, it was turned down. The Times says this reflects Apple’s weakened position in music, with the growth of so many alternatives to iTunes for music fans. There will be no free option in the streaming service.
One Apple insider said the new app will be similar to the existing Beats Music streaming service, with curated playlists. Jimmy Iovine, the legendary record industry executive who runs beats with Dr Dre, is reported to be pushing for big albums to be premiered exclusively through Apple.
As for Lowe, he is “expected to play a role reconfiguring” iTunes Radio. That tallies with what the Guardian has been told by sources. Lowe made himself an influential figure in UK radio by demanding and getting track premieres, and – especially with Iovine chasing album premieres – it seems likely this was part of his appeal to Apple. The radio station looks likely to be global, and the NYT suggests it will have geographically targeted programming.
Apple bought Beats for $3bn in May 2014.
