Apple and Beats in the Midst of Developing Music Streaming Service

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Remember how last year when Apple purchased Beats for $3 million speculation began that the two mega companies would be forming a new music streaming service that could “rival Spotify”?

Well, it sounds like that time is coming closer.

In a recently published article in The New York Times, it appears that not only is Apple working on a new music streaming service, it will also be saying good-bye to the Beats name, something that they promised back in September would not happen.

One thing that has remained a constant since the announcement of the merge is that Nine Inch Nails frontman, Trent Reznor will be playing a part in the creation of this streaming service. Reznor, whose previous title was Chief Creative Officer of Beats Music before the acquisition, previously revealed he would be part of this new project, but what he would be actually doing has remained a secret.

“Beats was bought by Apple and they expressed direct interest in me designing some products with them. I can’t go into details, but I feel like I’m in a unique position where I could be of benefit to them. That does mean some compromises in terms of how much brain power goes toward music and creating. This is very creative work that’s not directly making music, but it’s around music.”

Sadly, according to NYT, this new streaming service will not have a free tier. The free tier has become a staple in luring customers to shell out big money for more music choices and no commercials.

Reznor had also voiced his opinion on this new era where people want music for free as opposed to paying to get the music that they want.

“I think paying for music is a relic of an era gone by. And I’m saying that as somebody who hopes you pay for music. I’ve spent my life trying to make this thing that now everyone thinks should be for free.”

Another difference between the current streaming services of the world and this new project? The pricing, at least that’s what Apple was trying to do.

Apple attempted to persuade record labels to agree to lower licensing costs resulting in Apple being able to sell subscriptions to its streaming service for $8 a month; the standard for services like Rhapsody, Rdio, and yes, Spotify is $10 a month. But that did not pan out the way they wanted. As the article points out, it reflects just how far behind Apple is in the music streaming game.

As for now, nothing is concrete on what Apple is trying do with this new music streaming service, but if people have to pay for it without a free trial, do you really think the consumer give it the time of day?