The giant reportedly plans to "deeply integrate" Beats into iOs, iTunes and Apple TV and offer a plan for $7.99 a month, according to 9 to 5 Mac.
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The service will be free to all passengers on planes with Wi-Fi. Southwest is marking the partnership with Beats artwork on a Boeing 737.
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There are conflicting reports about what Apple will ultimately do with Beats Music, with Recode reporting a potential name change, and TechCrunch calling for the service to be scrapped completely. Apple says TechCrunch's report is inaccurate.