UPDATE: An Apple representative told Recode the TechCrunch report was “not true” but would not elaborate further. Recode also was told by Apple that Beats may go away but that the company would remain invested in music streaming, which would still fall in line with part of TechCrunch‘s earlier report.
ORIGINAL STORY: Apple announced its acquisition of Beats Music and Beats Electronics only five months ago, but a new report suggests that one portion of that purchase may soon be closing its doors.
According to TechCrunch, multiple sources have suggested Apple will shut down the Beats streaming service Beats Music, which functions similarly to apps like Spotify, Rdio, and Pandora. No specifics about the alleged plans to shutter Beats Music were provided, but all of TechCrunch‘s sources agreed Apple would be focusing its resources elsewhere.
This closure would still leave Beats Electronics operational, continuing to produce headphones and speakers.
TechCrunch noted several signs pointing to the alleged closure, including Beats Music CEO Ian Rogers also being put in charge of iTunes Radio, as well as the lack of a pre-installed Beats Music app on the recently launched iPhone 6 or any visibility of it in the promotional materials for the Apple Watch.
While Beats Music was positioned as a major streaming service player, by May, the service, which launched in January of 2014, only garnered 250,000 paid subscribers, which is a far cry from Spotify’s 10 million paid user base.
One of TechCrunch‘s sources alleges the streaming capabilities could be rolled into iTunes, which would unify Apple’s brand and fall more in line with the company’s cohesive environment of a select few products and applications. Apple has not confirmed to TechCrunch or EW about any concrete plans, however.
Apple did not immediately respond to a request for comment.