Neil Hughes
Apple's ambitions in the music industry go beyond competing with the likes of streaming services like Spotify and Pandora, signaling that the acquisition of the Beats Music subscription service is just a part of the company's plans to overhaul iTunes.
Apple's goal "is to be the music business, it's not to compete with Spotify," an unnamed industry insider said to Billboard. Apple's behind-the-scenes dealings with record labels are beginning to come to light just days after CEO Tim Cook and executives Eddy Cue, Jimmy Iovine and Robert Kondrk attended the Grammys.
Apple is said to be debating pricing for its upcoming subscription music service, looking to reduce the $9.99-per-month rate of the existing Beats Music product. The iPhone maker reportedly believes it can leverage the existing 800 million iTunes and App Store customers from which it already has active credit card numbers.
Industry insiders also signaled that Apple is planning a "major scrub" of the iTunes Store to remove "duplicate and deceptive" versions of songs.
Apple is looking to evolve as the music industry has moved away from digital music downloads and sales to subscription streaming services like Spotify. Last year alone, digital music sales fell 9 percent, while streaming grew 54 percent.
To help its transition and broaden its music distribution options, Apple acquired Beats Music last year as part of a $3 billion deal that also included the Beats headphones business. It's expected that Apple will retire the Beats Music brand and more tightly integrate a revamped version of the product into its existing iTunes lineup.
Iovine, himself an acqui-hire from the Beats deal, is said to be spearheading talks to lock up exclusive releases for Apple. The company hopes to replicate the blockbuster launch of Beyonce's eponymous LP on iTunes from 2013, which sold more than 800,000 copies in its first three days.
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54 Comments
But I like the idea of a music library I carry around! Dudes, all Apple has to do is come out with a Beats headphone that plugs in to the iPhone port, and they'll make it back in a year. And ... what cool headphones they might be! Really surprised there are no (as in zero) rumors around this. Who gives a cracker about the music streaming service?
I miss the days when we had a music profession. The real question is: will great music ever be created now? Seems it's been downhill since 1750 (the death of Bach).
Maybe Beats will be Apple's music producers; signing new acts.
"Apple's behind-the-scenes dealings with record labels..." It's a fail right there. To BE the music business you have to make sure that the source of music is thriving. The indie artists and DJ's must be able to upload and market themselves WITHOUT any record labels or money involved. Just like on YouTube, Bandcamp, Soundcloud, Patreon or any other indie alternative. These days labels are becoming more like trucks, some people will still need them, but most of us will be better off with lighter alternatives closer to the source. Then, should the need for a truck arise, it should be an easy step for the artist.
Huh? downloads sales have declined because the music industry sucks due to its overloaded hip hop, rap, Kanye West crap. So what does Apple do? Aligns itself with a HopHop rap emprasario. Go luck wit dat.