Apple Inc. (NASDAQ:AAPL)‘s Beats Music is set to face stiffer competition as Google Inc (NASDAQ:GOOGL) is looking to release its own streaming based service, Music Key. Bloomberg‘s Hans Nichols reported on the future outlook of the online music streaming in light of this new development.
“[…] What both Google Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL) are getting into is the streaming business which is right now owned by Spotify, owned by Pandora, so what Apple, they bought Beats headphones, Beats electronics for $3 billion. What Google through YouTube wants to do is they want to offer Music Key. It’s a subscription based service. It’s going to start at about $8 per month […],” said Nichols.
Beats Music is the music streaming arm of Beats Electronics, which as Nichols pointed out was acquired by Apple Inc. (NASDAQ:AAPL) in order to tap revenues from the online music industry. The subscription of the service is also more expensive than what Google Inc (NASDAQ:GOOGL) is planning to offer its customers. Currently, it costs $9.99 to subscribe to Beats Music for a month.
Apple Inc. (NASDAQ:AAPL) doesn’t necessarily have to lower its subscription fees to battle this new competition that is arising from the new tech giant. By the wildfire-like sales of its new smart phones, Apple has shown that its customers are willing to pay more on account of brand loyalty. Many have argued that Samsung’s Android based phones might actually be slightly better than the Apple Inc. (NASDAQ:AAPL)’s new releases, but the South Korean electronics giant doesn’t have the sales numbers for the last few months to substantiate that claim.
It will be interesting to see whether Google Inc (NASDAQ:GOOGL)’s Music Key can eventually join the category of top most paid Apps on the Android platform. On the other hand Apple Inc. (NASDAQ:AAPL) users are generally more used to paying for Apps than the Android users, which could also be one more thing going in favour of Apple.
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