Apple Music: Pre-pricing for greater growth possible

Nov

1

2016

Apple music article logo itunes Business with music streaming is no easy thing to remember, especially the big providers. The choice of the offered music is hardly different and also price are meanwhile all on the same level. Spotify, Google Music or Deezer, Google Music or Deezer has had to put Apple’s price pressure on it for years – the family subscription was only available with Apple at the price of 14.99 Euro per month. Then Amazon came with Music Unlimited and a price that is at least Prime-customers an advantage over the other individual users do. 7.99 dollars, 20 per cent cheaper than the competition, you have to put only on the table, in order to enjoy the full music program.

Apple Music could dare a new thrust here at the Christmas time and also turn at the price screw. This defines a report by Digital Music News close. However, the price reduction is not yet decided, it is also possible that it will not come. Start the whole thing as a Christmas promotion. After the three free months would be in the single subscription only 7.99 dollars are due, the family option would be for 12.99 euros, that is, two dollars less than before. For students, who already receive the subscription for $ 4.99, but nothing to change.

Another possibility would be that Apple current single subscribers reduced to the family subscription. Whether the whole will be a temporary action or generally the price is to be lowered, is still unclear. If this is the case, inventory users are also likely to profit from the price reduction, the few would probably have something against it.

However, a lower price also means less revenue per user on the side of Apple. The music industry will not, however, forego revenue, so that such a discount is at the expense of profit. This in turn – especially for Apple – would be rather untypical. However, this could also be compensated by rising user numbers. It would be possible through such a price fight also an Auslese with the offerers. Just Spotify is struggling hard to be profitable at all, even lower prices would not be as easy for the provider as with providers like Amazon or Apple, which also generate revenue in other areas.

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