As far as we know, Apple wants to carry out some quite aggressive tactics in view of the relaunch of Beats Music . It seems that Apple has contacted the record labels to stop licensing free music on streaming services such as Spotify.
These aggressive tactics that Apple would be carrying out have attracted the attention of the Department of Justice and the Federal Trade Commission. According to several sources, both institutions are looking closely at these Apple business practices in relation to the upcoming launch of Beats Music , its new streaming music service.
Apple had to spend $3 billion to buy Beats, the famous company in charge of manufacturing headphones and also creator of the streaming music service Beats Music. The company knows that these platforms have greatly affected digital music downloads , so it wanted to bet on Beats Music to launch its own streaming music service.
Apple would reduce its competition by attacking the free Spotify service
If what they say in The Verge is true, Apple would be putting pressure on major record labels not to renew their free listening licenses for Spotify . In this way, Apple would greatly reduce the competition for its next streaming music service.
Apple would have been using its great power in this industry to stop record labels from renewing Spotify’s free listening licenses. And not only that, it seems Apple also would have offered to pay the YouTube music license fee to Universal Music Group in exchange for the label stopping offering its tracks through the streaming service of this platform.
Currently, Spotify has around 60 million listeners, but only 15 million are users of the premium service , while the rest use the freemium mode. Therefore, Apple’s intention would be to end this free model of Spotify in order to make its new streaming music platform of Beats Music less competitive when it is launched, which is also expected to have a large amount of exclusive content.
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Apple’s streaming music service would see the light of day at WWDC15
From TheVerge they say that apparently Apple would be trying to clear the way as much as possible before the launch of its new streaming music service , which is expected to take place at WWDC15 on June 8-12. Should Apple convince the record labels to terminate their licences for freemium services from Spotify and YouTube, it could do a lot of damage to two of its biggest competitors in this sector.
In addition to the United States Department of Justice and the Federal Trade Commission, Apple would also be under investigation by the European Union Competition Commission . The intention of this institution is to find out if Apple is working with the record labels to eliminate freemium services from the industry.
At the moment, it is known that this new Apple streaming music service is created from Beats Music and will have a high integration with iTunes . It remains to be seen if Apple will finally get its way and put an end to the free streaming music services of Spotify and YouTube.