The fog is starting to lift over Apple’s purchase of Beats Music last year for £1.8 billion.
Wall Street journal are reporting that falling iTunes sales are the reason for the purchase and that Apple are hoping to merge the two by next year.
Even with 800 million users (digitalmusicnews.com) iTunes had been in a bad way, with sales falling 13-14% year-to-date over last year. Even with a puny (in comparison) user base of 250,000 paid subscribers, Beats Music has a more secure future with streaming services gaining a foothold in the extremely competitive music dissemination market.
Wall Street Journal say that digital music sales fell 13% while music streaming increased 32% in the US in the last year.
The music streaming industry is about to get a makeover.