Warner Music Remains Optimistic on Streaming Music, as Long as It’s Paid

To offset the loss from downloads, Warner Music Group currently accepts the freemium model of ad-supported streaming music, but only as a means to convert users to paying subscribers. Paid subscriptions and not freemium plans are the future of the industry, states [CEO Stephen Cooper]. […] Warner’s emphasis on paying subscribers may not bode well for Apple’s reported plan of slashing monthly costs for its Beats Music service. The Cupertino company is rumored to be pushing music labels to cut current subscription prices in half to $5 per month as it negotiates the terms for its recently acquired Beats Music streaming service. Apple argues that lowering the monthly cost will encourage significantly more users to sign up for the paid service, but labels are obviously considering whether those gains will outweigh the lower per-user income that comes with the cheaper pricing. – Kelly Hodgkins,MacRumors
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