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Apple and major record label Universal Music Group are reported to have been pushing Spotify to reduce their free streaming services in concerns over revenue streams.
Earlier this year, at the Code/Media Conference Universal Music Group CEO Lucian Grange said "finding businesses that customers want to pay for is the next phase for the industry," going on to express his desires to "accelerate paid subscriptions."
Of Spotify's 60 million customers only 25% pay the subscription fee, Grange went on to siggest that "ad-funded on-demand is not going to sustain the entire ecosystem of the creators as well as the investors."
Apple have been rumoured to have been behind this move in a domino effect, after reports appeared of the online retailer pushing labels not to renew their streaming licence through Spotify's free tier. This move from the major labels will give Apple a dominance in the market, The Verge reports.
These recommendations seem to have worked as The Financial Times reports Universal Music Group are beginning to initiate the idea to Spotify that they should apply limitations to their free tier. The Federal Trade Commision and The Department of Justice are supposively looking into Apple's business tactics.
Apple are seemingly continuing their quest to take on full control of the industry, Apple's rival streaming service Beats is currently being set up by the corporation and set to launch at the Worldwide Developer's Conference in June. It will be offered to a 'long list of countries' at the cheapest price in the mainstream market - $8 in comparison to Spotify and Tidal's $10.
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