When Apple purchased Beats last year, it sort of made sense, but at the same time none at all. However we’re slowly seeing this purchase make more sense. Now we’re starting to see this pay off in the form of a relaunch of the Beats Music streaming service. Normally, this wouldn’t be all that big a deal, just another streaming service to add to the mix. However Apple has a few things going on in the background that make this big news.
According to sources reporting to The Verge, Apple has been slowly trying to clear a path within the music streaming industry leading up to the launch of their own offering. Apple has reportedly been using it’s power in the music industry to get labels to stop renewing their licenses in relation to Spotify’s free service. Currently Spotify has a massive 60 million users, but only 15 million of them actually pay for the service. Taking out different music labels from that free tier could create a massive oppurtunity for an opposing service such as Apple’s to gain millions of users.
However Spotify isn’t the only service being attacked here. Other sources indicated that Apple offered Universal Music Group payment for their YouTube music licensing fee if the label stopped allowing their music to be played on YouTube.
If all this is indeed true, it’s very obvious that Apple is trying to force it’s way into the streaming industry without any grace at all. However it looks like they may not be able to do it without going unnoticed. The US Department Of Justice and the European Union’s Competition Commission are both reportedly looking into Apple’s business practices in regards to this upcoming service. One source within the music industry even said “All the way up to Tim Cook, these guys are cutthroat.”
What are your thoughts on this news? Could Apple be taking action to take out the competition? If so, will they get in trouble? Let us know your thoughts about this in the comments below!