Significant Apple Music price cuts are reportedly ‘under serious discussion’
Apple may still afford to keep profit margins at sky-high levels most competitors can’t even begin to dream of when it comes to mobile or wearable hardware, but as far as music streaming services are concerned, the race to the bottom could soon get to the Cupertino-based tech giant too.
Amazon Music Unlimited seeks to disrupt a cutthroat scene where prices nonetheless appeared to stabilize, treating Prime subscribers to essentially the same “premium” content as Apple Music or Spotify at $8 a month instead of $10, further dropping the rate to an irresistible $4 for Echo smart speaker users.
While Apple is yet to decide on a counterattack maneuver, a “pair of sources working closely with the streaming service” claim a general price trim of up to 20 percent is “under serious discussion.” This could well materialize “as soon as this Christmas, and possibly start with a holiday promotional discount” before taking a permanent nature.
If the rumors are right, a single Apple Music license would slip from $9.99 to $7.99, whereas family packages should themselves shave 2 bucks off to a new $12.99 monthly fee. The 90-day free trial window would be retained, and although Apple’s record label expenses are to remain the same with potentially shrinking revenues in the short term, the long-haul goal of fending off Amazon and Spotify is probably far more important.