We already know that Apple thinks that $10 is too expensive for monthly subscriptions that offer unlimited music streaming, but how low is the company willing to go? A new report from Re/Code today, which also digests the new Spotify Family news, pegs a price.
The news outlet said that “industry scuttlebutt” suggests Apple is aiming for a $5 monthly price point for unlimited streaming music. That’s half of what Spotify charges currently and while it seems like Apple may just be trying to undercut the competition, there’s some math to back up why $5 makes sense.
Re/Code said average iTunes users spend about $60 a year on music, which boils down to $5 per month, and that the streaming service could help attract even more users, resulting in revenue that Apple wasn’t generating without a subscription service. If it comes to fruition that could be a win for consumers, a win for Apple, and a win for Apple’s music partners.
Rumor has it Apple will rebrand Beats Music and re-launch it as some sort of new streaming service, but we still don’t know when that will happen.