Many of us still wonder why Apple decided to acquire Beats by Dre for $3 billion earlier this year. At the moment we still haven’t seen any collaboration between both companies, and aside from some better product placement of Beats products on Apple’s stores, we don’t see how Cupertino is finding any benefit to this deal. That said, we know Apple is famous for its secrecy (sarcasm intended), and it seems that the company plans to start some changes with Beats Music.
We’ve heard that Apple is negotiating with record labels in order to drop the price tag of Beats Music in order to compete with the exiting leadership of Spotify. New reports now claim that Apple is also planning to rebrand the service in 2015 and bundle it as part of what you receive pre-installed on every iOS product. It’s hard to predict if Apple plans to mix iTunes Radio with Beats, or if Beats will serve as a way to revamp iTunes Radio, but we can assume that iTunes will have something to do with the new name.
Apple’s quarter results expressed some concerned for the declining sales of iTunes music. As such, we’ve seen some interesting strategies through giving away a U2 album, among others. What’s clear is that Apple has already woken up and understood that music streaming is the future, so let’s just hope they also manage to address this issue with some innovation and not just a way to compete.