During Friday’s Morning trade, Shares of Apple Inc. (NASDAQ:AAPL), lost -1.72% to $113.73.
According to the latest news report, Apple Inc. will march to the beat of its new streaming service. The company will officially shut down Beats Music on Nov. 30 after launching Apple Music on Android earlier this week, according to Business Journals.
The company is encouraging Beats subscribers to switch over to Apple Music before Beats goes offline.
“Your subscription will be cancelled, but you can move your picks and preferences over to Apple Music right now,” the company wrote in a blog post. “All the pros that curated music for you are still crafting more amazing experiences. Plus, on Apple Music, you’ll get even better recommendations based on music you already listen to and love, 24/7 global radio with Beats 1, exciting material from your favorite artist, and more.”
Beats began its slow decline in June when Apple stopped taking on new subscribers after the Apple Music iOS launch.
The company is reassuring Beats subscribers that migrating their content between services should be simple and they will receive the same features, plus access to an expanded catalog and unlimited radio. Business Journals Reports
What is Beats Music?
Beats Music was a subscription-based online music streaming service owned by the Beats Electronics division of Apple, Inc. First developed in 2012 under the name “Daisy”, the service combined algorithm-based personalization with expert music suggestions from a variety of sources. The service built upon Beats’ existing consumer electronics line, and its 2012 acquisition of the similar service MOG. The service was launched in the United States on January 21, 2014.
Beats Music was attained by Apple Inc. as part of its purchase of Beats Electronics in May 2014. Beats Music was suspended concurrent with the launch of Apple Music on June 30, 2015. Subscriptions were migrated to the new service.
Apple Acquisition and Shutdown
On May 28, 2014, Apple Inc. declared it was buying both Beats Electronics and Beats Music for US$3 billion in a cash and stock deal.[10] The Wall Street Journal stated that had Apple valued Beats Music at “slightly less than $500 million.” Following the purchase, Beats Music CEO Ian Rogers would oversee both Beats Music and Apple’s ad-supported iTunes Radio service.
It was later stated by Business Insider that Apple was planning to merge the two services together. Apple had hired noted British radio DJ Zane Lowe to serve as a music curator.
It was also stated that, in negotiations with record labels for the new service, that Apple had been attempting to encourage record labels to pull their content from the free, ad-supported tiers of competing services such as Spotify in order to drive adoption of the new service, and offered an incentive to Universal Music Group to pull its content from YouTube. The U.S. Department of Justice and Federal Trade Commission launched an investigation into this alleged cartel in May 2015.
Apple Music launched on June 30, 2015, in 100 countries. New users receive a three-month trial subscription, which reverts to a monthly fee. A family plan option lets up to six users share a reduced rate. Apple originally sought to enter the market at a lower price point for the service, but the music industry rejected the plan. The service debuts as an iOS device exclusive alongside the same-day iOS 8.4 update. Apple TV and Android device support is planned for a Q3 2015 launch. A formerly unreleased song by Pharrell Williams called “Freedom” was used in promotional material and has been declared as an exclusive release on the launch of the service. The “History of Sound” advert for the launch of the Apple Music service was soundtracked by the tune “There Is No Light” by Wildbirds & Peacedrums, from their 2009 album The Snake.
Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, education, and enterprise and government customers in the Americas, Europe, Greater China, Japan, and Rest of Asia Pacific. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers.