Apple will bundle the subscription music service it acquired from Beats into its iOS operating system early next year, instantly making it available on hundreds of millions of iPhones and iPads and iPods ramping up pressure on Spotify, the market leader in music streaming.
The inclusion of the paid-for Beats service in an iOS software update could happen as early as March, according to people familiar with the situation. The move represents Apple's first attempt to capitalise on Beats since it bought the headphone maker and streaming service from Dr Dre and Jimmy Lovine for $3bn this year.
Pre-installing apps on devices is seen as a fast track to reaching new customers. Apple could also take advantage of its new mobile payments service to enable customers to subscribe with just one touch of the iPhone's fingerprint reader.
Apple's installed base of active music buyers dwarfs other services, according to Midia Research, a music analysis firm, which estimates it has 200m active iTunes customers. Apple's push to capitalise on the Beats service will start from a low base, however, as Midia estimates Beats Music has only 110,000 subscribers.
Spotify has pioneered music streaming but has come under fire from Taylor Swift, who pulled her catalogue from its ad-supported music service in a dispute over the value of her work.
Apple is preparing to put its new Watch on sale in the spring, to which the new music push could be linked.
Earlier this year, Apple used its ability to push content to its vast customer base to bundle its iBooks app with iOS 8, rather than requiring users to download it from the App Store. It also caused a stir among musicians and customers when it installed U2's new album on hundreds of millions of devices, whether they wanted it or not.
Sources: cnbc and Financial Times.
