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Why Apple's new streaming service could revolutionise the music industry -- again

Oscar Raymundo | June 3, 2015
At WWDC Apple will unveil its new music service, which combines on-demand streaming, Internet radio and celebrity DJ's to try and lure iTunes' 800 million users into paying US$10 a month.

The more people who are signed up for a rolling monthly subscription, the more revenue the model can bring for both the record labels and for Apple. According to the WSJ, Apple could begin prompting users who download an album for $10 to simply sign up for an equally priced monthly subscription.

But the negotiations continue

WWDC kicks off on Monday, June 8, but sources told the WSJ that Apple has not yet closed licensing deals with three major record labels. Although neither party seems to be breaking a sweat.

"If any company can pull it off, they can," one music industry source told Billboard, when news of the stalled negotiations first came to light last month.

Furthermore, Apple is also negotiating to bring celebrity DJs to iTunes Radio to lure casual listeners in countries where Pandora is not available. According to the latest rumors, Apple has offered $19 million to sign Drake as a guest DJ for its ad-supported radio service.

Apple is also reportedly looking to bring onboard other big artists in different genres. French DJ David Guetta and "Happy" singer Pharrell Williams are also being courted by Cupertino, according to the New York Post.

In February, Apple poached radio DJ Zane Lowe from BBC Radio 1. Lowe was the host of the station's flagship show and is credited for discovering artists such as Adele and Gnarls Barkley.

 

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