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Apple is asking about discounts labels for streaming music
According to Re / code, Apple is in talks with the major music labels. The company, which recently acquired the music service Beats Music, expects to reduce the price at which labels provide access to their music. This will enable it to transfer more and more users of paid services Beats Music, which is scheduled to be updated in the next year.
However, the record labels have concerns. Reduction of subscription prices could lead to a drop in album sales performers. Indeed, after the record companies were allowed to streaming services, such as Spotify, Rhapsody and Beats Music, to provide access to their music library for $ 10 a month, sales of digital versions of music records began to fall, while the profit from subscribers to music services began to grow.
However, a direct correlation between the two events could not be determined, as there is a third force in the face of piracy and free music sites such as Pandora, YouTube, SoundCloud and iTunes Radio, analysts say. And it is not clear whether people stop buying records because they can download them for free, or because they can get access to more songs and artists for less money by subscribing to the streaming service.
Many experts believe that the significant difference between the methods of pay musicians and recording studios there, so how in the world there is a very limited number of people willing to spend each month for $ 10 on music. Especially in view of the fact that so many did not spend even during the heyday of CD, when no streaming services, no online piracy by and large did not exist. This is confirmed by statistics Spotify, according to which only 25% of the 10 million subscribers spend on music more than $ 10 for three months. Most prefer to use the free service opportunities. At the same time pay for unlimited access to music consumers are willing, but only on condition that the price of a monthly subscription will fall and will not exceed $ 03.04 per month.
It is impossible not to mention the fact that as long as all streaming services operating at a loss, but are considered to be very promising. “None strimingovyh service into a profitable model came out. At the same time she strimingovyh model seems much more promising. For example, the last in 2013 was quite significant in terms of the history of how the model will be built in the music industry. Why? Because for the first time the existence of iTunes sales of tracks – not albums – tracks down iTunes. And at a pretty decent figure – around 6%. In this strimingovyh services to fit the audience, in terms of revenue, growing by tens of percent a year, even in established markets. Emerging, it is clear even faster, “- quote” Vesti “Konstantin Vorontsov, head of service” Yandeks.Muzyka. ”
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