Apple is expected to announce its long-awaited music streaming service during the WWDC keynote later today, and despite tough competition from the likes of Spotify, the company has incredibly ambitious plans to sign up 100 million subscribers.
The redesign and relaunch of Beats Music is one of the most anticipated announcements Apple fans are expecting to hear about next week at WWDC. Apple spent $3 billion on Beats in an effort to take on the likes of Spotify and Pandora, but according to Piper Jaffray analyst Gene Munster, all that effort won’t make Apple a ton of money.
Beats currently has about 300,000 paid subscribers while Spotify has 15 million. According to Munster’s math, even if Apple matched Spotify’s subscriber base the profits will be weak.
Apple’s big Beats Music relaunch might be revealed next month at WWDC, and Apple is trying to clear a path through Spotify and YouTube by strong-arming labels into killing freemium music services.
The aggressive tactics have triggered the Department of Justice to look into Apple’s business practices for its upcoming music streaming service, according to a report from the Verge, claiming high-ranking music industry execs have already been interviewed.
As Apple prepares to relaunch Beats Music at WWDC, another tech giant is throwing its name in the music ring: Instagram, which has just launched a new @Music account designed to capitalize on its popularity among music fans.
The newly-opened account will share music-related photos, lyrics, and videos, relating to both established artists and new acts you haven’t heard of.