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He has not officially debuted with its streaming music service, but Apple is already flexing its muscles to beat the competition. According to the latest rumors reported by American blog, the Cupertino company would have declared war on the free offering of some market players – Spotify in the lead – through pressure on record labels. Move that would have triggered the attention of US authorities for the competition.
Having come under the lens for EU agreements with the majors, now Apple would be targeted in the US Justice Department and the Federal Trade Commission, again to fears related to violation of competition with Beats, the streaming music service which is expected to launch in June. Rumor blog The Verge, the company was driving the record companies not to renew the licenses to services like Spotify, for the part about the free offer to users. That really popular option that enables millions of people to access the catalog of millions of tracks without paying a euro, thanks to the insertion of commercials. If it can in his attempt, Apple would drastically reduce competition, because of the 60 million users Spotify only 15 million are paid ones. The rest leads to `free’. The service is more frightening than that of other competitors: it was just evaluated nearly 8 and a half million dollars, more than twice the rival Pandora.
On the war to the offer of free music Apple could find fertile ground right on the front of the majors: press to convert the music “free” in a subscription model, given that – complain – streaming service with advertising would not be able to generate enough revenue to offset the decline in CD sales and downloads digital. The pop star Taylor Swift had said “goodbye” in Spotify last year for this reason. And it is in the wake of the criticism that is born Tidal, service backed by stars like Jay-Z and Madonna. It is only available with an additional fee, specifically with the aim of “safeguarding” the rights of artists and royalty more.
The service of the bitten apple, which was born from the ashes of Beats Music and who would be working musician Trent Raznor and renowned music producer Jimmy Iovine, has the potential to change the tables. According to a recent study by Research Midia, the potential pool of participants could be about 75 million users. A scenario that does not go unnoticed in the eyes of the authorities, whereas the market is growing for the first time in the US, revenues generated from the music stream exceeded those of CD sales. And to drive digital revenues are own subscription services: according to the latest data of IFPI, the International Federation of the Phonographic Industry, were up + 39% and have balanced the decline of the download (-8%, but still to 52%).
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