Apple to launch Spotify rival?

Following reports that streaming music is on the rise and digital music sales are down for the first time in ten years, Apple are reportedly in negotiations to launch an on-demand subscription music service.

Billboard reports Apple Inc. have been holed up talking to senior record label executives about a possible Spotify rival. iTunes currently make up more than 40% of US recorded music revenue and its music buyers stand at 200 million, looming over Spotify’s 6 million. As a major label source told Billboard, the aim would be to move Apple’s users from iTunes over to a streaming service.

2013 reports released by IFPI (International Federation of the Phonographic Industry) and RIAA (Recording Industry Association of America) showed streaming services to have grown 51% worldwide, while downloads fell 2.1%.

Apple are yet to confirm or deny reports; the label source has said “It’s all in the ’what if’ stage,” but with Apple considering launching an Android version of iTunes – which is currently exclusive to iOS device users – it’s clear the company are looking to mirror the success of its download realm where it is eons ahead of competitors.

Apple’s belated entry to the game follows the launch of iTunes Radio in September last year. Although it was promoted as a streaming product for iOS 7 devices and the updated iTunes 11.1, users later argued it was just another coo to gain iTunes track purchases with ‘Buy’ links fraught throughout.

Apple might be tight-lipped about its response to the latest digital sales reports but if past licensing agreements with major labels are anything to go by, it could be years before ink meets paper.

“The subscription model of buying music is bankrupt. I think you could make available the Second Coming in a subscription model and it might not be successful.” – Steve Jobs. Rolling Stone, December 3, 2003