Beats Music enables in-app subscriptions with latest update in bid for more users
Beats Music, the streaming radio arm of the Beats empire, updated its iPhone app on Friday with the notable addition of in-app subscriptions, meaning the company is now paying Apple's usual 30 percent commission on new sign-ups.
The Beats Music app launched in January alongside the streaming subscription service looking to take on industry stalwarts Pandora and newcomers like Apple's own iTunes Radio. At the time, fees were processed outside of the iOS app, meaning Apple didn't get a direct share of the sign-up proceeds generated through its mobile platform.
As reported by Re/code, Beats CEO Ian Rogers said the decision to include in-app subscriptions -- 30 percent of which goes to Apple -- was based on Apple's massive iOS user base. According to Rogers, more than half of all Beats users own an iPhone and asking these people to sign up outside of Apple's ecosystem is "very hard," the publication said.
In addition to the iPhone, Beats is expected to launch an iPad app, which will likely draw an even larger crowd.
Moving to in-app subscriptions is "what you do when you want subscribers," Rogers said. "If you don't care if people subscribe or not, and you've got a free product, maybe then you wouldn't do it."
Re/code points out that Beats' decision to accept Apple's commission rates may raise concern over the company's performance, though Rogers claims the move is not indicative of a struggling business.
"We've had far more people try the product than projected," Rogers said. "Clearly the marketing works. The conversion rate on the AT&T plan is off the charts. It's safe to say the biggest problem is coverting iOS users, and we've just fixed that."
The Beats Music app launched in January alongside the streaming subscription service looking to take on industry stalwarts Pandora and newcomers like Apple's own iTunes Radio. At the time, fees were processed outside of the iOS app, meaning Apple didn't get a direct share of the sign-up proceeds generated through its mobile platform.
As reported by Re/code, Beats CEO Ian Rogers said the decision to include in-app subscriptions -- 30 percent of which goes to Apple -- was based on Apple's massive iOS user base. According to Rogers, more than half of all Beats users own an iPhone and asking these people to sign up outside of Apple's ecosystem is "very hard," the publication said.
In addition to the iPhone, Beats is expected to launch an iPad app, which will likely draw an even larger crowd.
Moving to in-app subscriptions is "what you do when you want subscribers," Rogers said. "If you don't care if people subscribe or not, and you've got a free product, maybe then you wouldn't do it."
Re/code points out that Beats' decision to accept Apple's commission rates may raise concern over the company's performance, though Rogers claims the move is not indicative of a struggling business.
"We've had far more people try the product than projected," Rogers said. "Clearly the marketing works. The conversion rate on the AT&T plan is off the charts. It's safe to say the biggest problem is coverting iOS users, and we've just fixed that."
Comments
Just another vanilla audio service propping up crappy audio devices for sucker children.
You may be right, but as an AAPL shareholder I'm perfectly fine with seeing increased revenue via an outside sales channel.
But that's just me...
Just another vanilla audio service propping up crappy audio devices for sucker children.
Um, Beats is hardly a "vanilla" audio service.
"It's safe to say the biggest problem is coverting iOS users, and we've just fixed that."
Is Beats a front for spies?
It's better than a Inquisition
Beats Music purchased MOG a couple years ago. Earlier this year all MOG subscribers were told service would switch to the Beats App on April 15th and billing would cease for MOG on March 15. We were told we'd receive a full month of Beats free. This did not happen. They were more concerned with getting AT&T subscribers with a 3 month trial. They realize many iPhone users are in AT&T, obviously. There was an email sent 2 weeks or so after the supposed free trial was to start saying that they were going to continue billing is MOG users and they had no idea when they were going to transfer service to Beats full time.
This has put a damper on some users who've been with the service for years and paid good money. They claim that MOG users are valued highly and want to give a seamless transition, yet they have clearly put other priorities ahead of that.
I'm not sure what they are intending aside from getting more subscribers but they have lost a few due to this. I used to love MOG but this experience with Beats kicking loyal customers around isn't making it likely I'm going to transfer to Beats as Spotify has treated me better and I'm a trial member.