Last year, Apple paid $3 billion for Beats. Results of the purchase have been slow-coming so far. Rumors surfaced here and there about what Apple was planning to do with the acquisition but no major move had been announced–until today. According to The New York Times, Apple has announced that they are working with Beats engineers and executives to create their own subscription streaming service. The platform will feature an enhanced iTunes radio with tailored listening that will reportedly rival industry leader Spotify. What’s more, Apple hopes to have access to share bigger albums on iTunes first, before competitors.
A major difference between Spotify and this upcoming platform for consumers will be price. While Spotify offers a free version of their service, Apple and Beats’ app will not. After trying and failing to persuade labels to lower licensing costs so they could offer their services for $8 per month, their new app will cost the same as other platforms, around $10 per month.
The Times is also reporting that Trent Reznor, who was the chief executive officer for Beats, will play a large role in helping shape the service.