News - 18/01/2016

iTunes Radio becomes a premium-only feature, as Apple consolidates streaming offering

iTunes Radio becomes a premium-only feature, as Apple consolidates streaming offering

Apple has decided to pull the plug on the ad-supported version of iTunes Radio that continued to exist in the US and Australia alongside the ad-free version included in the paid Apple Music service. iTunes Radio had been launched before the Beats acquisition as a precursor to the company’s leap into the streaming space.

Apple did not elaborate on the reason for this choice, stating simply that non-paying users will be able to continue listening to Beats 1 Radio. 

Presumably the company realised that maintaining a whole advertising sales team in place to source audio adverts for iTunes Radio was a waste of resources, since there was never a real chance that the service would become so widespread as to compete with and generate the same amount of advertising cash as Pandora. 

In addition, there is a concrete possibility that Apple may expand the number of Beats radios available over the course of 2016, giving free users a broader set of options. 

Apple’s move consolidates its streaming offering into a free non-interactive tier (which is also much cheaper to run) and a paid tier which continues to include a generous three-month trial. This is also consistent with the company's focus on curation, which will shine a spotlight on its roster of DJs working around the clock on the Beats 1 programming.

The free, ad-supported version of iTunes Radio will stop operating on January 28, and presumably users of the service will be invited to try out Apple Music. 

 

(Andrea Leonelli) 

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