Apple has “opened exploratory talks” with record executives about creating an on-demand music streaming service, à la Spotify, and the company is also considering making an iTunes app for Android, Billboard reports. The discussions are reportedly part of a strategy to help Apple cope with declining downloads in the iTunes Music Store. “They are feeling out some people at labels on thoughts about transitioning its customers from iTunes proper to a streaming service,” a major label source said.
“So when you buy a song for $1.29, and you put it in your library, iTunes might send an e-mail pointing out that for a total of, say, $8 a month you can access that song plus all the music in the iTunes store. It’s all in the ‘what if’ stage.” Such a streaming service could be a standalone app. An iTunes spokesman declined comment.
The report also notes Apple is trying to stimulate more download sales by pushing catalog titles. iTunes executives have asked labels to clean up catalogs of their top 100 selling artists to prevent multiple copies of albums and redundant compilations from showing up in the store, with the hopes of reducing the available number of compilations for each artist to a more manageable number..