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Apple mulls on launching on-demand music service to compete with Spotify

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March 22
10:46 AM 2014

Apple has been toying with the idea of launching its own on-demand music streaming service to compete with Spotify, according to three sources cited by Billboard.

One of the sources said: "They are feeling out some people at labels on thoughts about transitioning its customers from iTunes proper to a streaming service. So when you buy a song for $1.29, and you put it in your library, iTunes might send an e-mail pointing out that for a total of, say, $8 a month you can access that song plus all the music in the iTunes store. It's all in the 'what if' stage."

In addition, the sources also said Apple is also mulling on creating an Android version of the iTunes App. These plans are designed to combat the huge decrease in Apple's US download sales from its iTunes Music Store, the report explained.

In September, Apple launched its streaming service with iTunes Radio. However, this free service provides a limited set of song options for listeners. Apple is now considering spinning out that service to become a standalone app. In a bid to increase its download sales, iTunes has started creating an easier music shopping method and increasing promotion of its catalog titles, Billboard reported.

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