This cannot be sitting well with Dr. Dre and Jimmy Iovine over at Beats. According to Billboard, theBeats Music streaming service is not performing anywhere near to what was expected after the first 100 days. And it does not look like things will be getting any easier as Spotify will be partnering withSprint with its Framily plan. Beats Music’s partnership with AT&T has not seemed to pay off.
While Spotify boasts around two million subscribers, Beats Music’s subscriber count is said to be in the “low six figures.” Yikes. It is understandable that Beats Music is not beating Spotify, but it is alarming just how far behind it sits. For the Super Bowl, Beats spent a fortune to run a commercialfeaturing Ellen DeGeneres. Not even Ellen’s dancing fever could spread to Beats Music.
What could be the next step for Beats Music? One label executive tells Billboard that Beats Music should let go of the advertisements that remain with subscriptions and go ad-free. He said “We’ve learned from Spotify that you have to fund free for a length of time with users investing time, creating playlists and getting used to the service.” And it is something very true. It is similar to Hulu Plus’ situation. Having people pay a fee and still implement ads is a joke. It makes consumers question what they are actually paying for.
In case you missed it, our very own Jack Holt spent some time with Beats Music and said it “may be something worth checking into again down the road when the service has matured and the painful bugs are ironed out, but at this point in time, you’d be better off spending your hard earned dollar somewhere else.”