As reported previously, the Cupertino California company plans to relaunch its recently acquired Beats Music subscription early next year and is looking to offer the service with a lowered subscription cost. The folks over at Re/code state that Apple is pushing for music labels to help cut streaming music subscription prices in half to $5 per month. The following reasoning was provided by Re/code for the matter:

The logic of Apple’s argument, relayed by people who’ve heard the pitch secondhand: Apple’s best iTunes buyers spend about $60 a year on downloaded music — $5 a month. So if subscription services dropped that low, any download buyers that switched over to the streaming model would generate just as much revenue for the music labels. And, more important, the market of potential subscribers would get much larger.
One thing to note regarding the move is that any reduction which is offered to Apple would also be made available to other services. This makes it less likely that music industry executives would take the leap and agree to discount the price by cutting it in half. According to Re/code, it is more likely that the music labels will end up meeting Apple in the middle for a fee that would end up around $7 to $8.

As Apple attempts to negotiate a term for its Beats Music streaming service, it’s rival, Spotify, is becoming pricing their service a bit more competitively with the introduction of a new Spotify Family Plan. Much like the Rdio’s Unlimited Family plan, Spotify Family allows a premium subscriber to add up to four additional members for $4.99 a month each which is 50% off the regular $9.99 individual premium plan. Spotify’s family plans were recently announced and set to launch in the coming weeks.

We’ll have to wait and see if Apple can come to an agreement with the music labels to stay competitive in the space. It’s likely that something will be worked out but we don’t know if the $5 cost Apple is looking to drop down to will be met.

Source: Re/code via MacRumors