Apple and Beats to compete with Spotify through a new streaming service

Dr Dre.’s Beats are collaborating with Apple on creating a streaming service to rival the likes of Spotify. And Zane Lowe’s going to be getting ALL the premieres.

Last year, Apple agreed to pay $3 million to acquire Beats. Now the company is collaborating with engineers to bring a revamped music app, led by a new iTunes Radio, spearheaded by former Radio 1 DJ Zane Lowe.

The New York Times reports on Apple’s decision to take on more recent music upstarts. Trent Reznor of Nine Inch Nails is said to be redesigning the music app, while Zane and industry executive Jimmy Iovine seek out track and album premieres to launch first on the Apple service.

Apple has been attempting to persuade record labels into agreeing a lower licensing fee, which would allow Apple to sell its service for $8 a month (in competition with Spotify and Rdio’s $10 a month). The Times reports that these initiatives have failed - Apple will be running a paid subscription service, but it won’t be any cheaper than those currently on the market.

There’s no word on when Apple and Beats’ new service is set to launch, although Zane is set to start at iTunes Radio this summer.