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Thursday, April 9, 2015
Apple's New Streaming Service May Have A Rough Start In Europe
Reports from both the New York Times and Wall Street Journal have sited multiple sources that say that the computer giant is increasingly under examination in Europe in its dealing with record labels. As a result, EU regulators have sent questionnaires to major labels and other streaming services regarding their dealings with Apple.
The supposition is that the tech giant hasn't been entirely truthful with the record labels in the past and regulators want to get to the reality of the situation before the new streaming service is launched. The streaming network is expected to be part of iTunes and is based upon the infrastructure of Beats Music, which Apple purchased last year.
There have been reports that Apple has been pushing the labels hard for a new deal that would enable the company to lower the monthly subscription rate for the upcoming service from the industry standard $9.95 per month to $7.95.
While $4.95 is thought to be the pricing sweet spot, major label licensing deals have made that price point impossible except for limited feature tiers or introductory pricing. Read more on Forbes.