Beats CEO Ian Rogers says the decision to sell within the Apple
app was fairly straightforward: More than half of Beats users use
iPhones, and it’s very hard to get an iOS user to subscribe if you
don’t sell in-app.
Two other music subscription services — Rhapsody and Rdio — have
also agreed to sell subscriptions within Apple’s app, though Rdio
raised the price for in-app subscriptions from $10 a month to
$15 a month to accommodate Apple’s tariff.
But Spotify, which is much larger than all three of the services,
hasn’t made the move. Spotify does have a free, ad-supported tier
available on its mobile app.
So Apple is making money on music subscriptions even though iTunes itself doesn’t (yet?) offer them.