Beats CEO Jimmy Iovine Pitched Steve Jobs on Subscription Music Service

Mr. Gates · Jan 11, 2013

bazinga!! said:
I think it's funny that so many people are bashing on Beats products, it's like everyone hates this product for some reason... Frustrated much?

They make really bad products. It's just that simple.

Not frustrated much at all. Just pointing out an inferior product and taking a stand against the propaganda machine promoting this hype.

Rappers don't even make quality music. Why should we trust them to make good products ?

Sorry "Dr." Dre ....But you didn't even pass MIDDLE SCHOOL , much less high school or college. Why exactly would I trust you to produce anything of quality ? ? ?

Albright · Jan 11, 2013

Heh, before I saw this article, I thought Beats were made by the Monster Cable people they seem to use similar marketing strategies.

EbookReader · Jan 11, 2013

Apple need to get into subscription music business.

It's the fastest growing segment right now.

http://www.digitalmusicnews.com/permalink/2013/20130103cannibalism2012
Growth of Paid Downloads vs. Streaming, 2012 vs. 2011

A. Paid Downloads: 1.336 billion. Up 5%.
(iTunes, Amazon, etc.)

B. Spotify Subscribers: 5.2 million. Up 86%.
C. Spotify Active Users: 20 million. Up 100%.
D. Deezer Subscribers: 3 million. Up 114%
F. Pandora Listening Hours (per qtr): 3.56 billion. Up 67.9%.

Right now in the USA:

Muve Music: 1.1 million paying subscribers
Rhapsody: 1 mil +
Spotify: 1 mil +

and other smaller players like XBOX Music, Sony Music Unlimited, MOG and Rdio.

Popeye206 · Jan 11, 2013

EbookReader said:
Apple need to get into subscription music business.

It's the fastest growing segment right now.

A. Paid Downloads: 1.336 billion. Up 5%.
(iTunes, Amazon, etc.)

B. Spotify Subscribers: 5.2 million. Up 86%.
C. Spotify Active Users: 20 million. Up 100%.
D. Deezer Subscribers: 3 million. Up 114%
F. Pandora Listening Hours (per qtr): 3.56 billion. Up 67.9%.

Image

Right now in the USA:

Muve Music: 1.1 million paying subscribers
Rhapsody: 1 mil +
Spotify: 1 mil +

and other smaller players like XBOX Music, Sony Music Unlimited, MOG and Rdio.

What's interesting is to go to the web site mentioned above and see the comments of the music industry people. Actual paying subscribers is low and there is a revenue issue for the industry as well.

Seems like I remember Apple having issues in the past with licensing for a streaming service. I'm sure the issues are deeper than just turning on a service.

Four oF NINE · Jan 11, 2013

I like the Klipsch S4 Reference earbuds for listening around the City. They're great for getting a good sound from music and podcasts. They're also great for subways and trains, ambient noise is not a problem!

MIDI_EVIL · Jan 11, 2013

ronwasserman said:
To Jimmy and Doug.

Remember in 1999 when you signed my band because we were the biggest thing online?

Remember when you asked me what the future of the music business would be and I said 99 cent singles?

Remember how you both told me that (as well as subscription) services would never happen in your lifetime?

Glad to see you woke up during your lifetime.

It's too late now to implement your ideas in a way that would be as profitable as they would have been a decade ago.

Good Luck!

Ron

Thanks for the Power Rangers theme!

wizzerandchips · Jan 11, 2013

FreeState said:
And incredibly bad headphones that have been marketed brilliantly.

Glad you said that, I was going to spend £130 on a set, then I purchased the new apple ear pods, I think there great.

unlinked · Jan 11, 2013

bazinga!! said:
I think it's funny that so many people are bashing on Beats products, it's like everyone hates this product for some reason... Frustrated much?

I think it is because they don't make enough money to be able to afford them.

0098386 · Jan 11, 2013

hofer said:
I don't like subscription services, period. I don't need another service for which I pay a monthly fee whether I use it or not.

That is why I like the original itunes models. You like a song, and you buy it, No further obligations.

On the other hand, if I were running a business, a subscription service would be great. Nothing like a steady stream of revenue. But IMHO, as a consumer you get screwed unless you are an addict that listens 24/7.

Same for me. It doesn't fit with how I listen to music, and streaming is not friendly with my network. We've got great data coverage in the UK but my data allowance is only 500mb (I've hit that 6 times in the last 12 months). If I had to rely on my connection to get music then for a few months of the year I wouldn't be able to access my music whilst on the go.

I also don't like my money going to nothing. If I end a subscription then I have to rebuy the music on iTunes/Amazon/HMV defeating the purpose of it all. Music is something that I want to keep for as long as possible, just like my parents did before me (with records and CDs) that I'll be able to pass down to my kids eventually.

Small things individually, but added up I'm just not into the whole subscription thing.

needfx · Jan 11, 2013

I've yet to understand the notion of a product being signed off/designed by a celebrity, as if they are really an authority on everything worldly, and even more so, people making such uninformed, hazed by a signature purchases

0098386 · Jan 11, 2013

unlinked said:
I think it is because they don't make enough money to be able to afford them.

Hah, is that really what you're going for? Here's a little breakdown for you - the sound they reproduce is average, their cost is high. There are headphones that sound much better for more than Beats, around the same as Beats and lots that are cheaper than Beats.
They'd be the cheapest item I'd carry with me or the cheapest part of my audio setup (if we're not counting the stand it sits on).

Mestys · Jan 11, 2013

iAco said:
Dr Dre, Birdman, Jay-Z, 50

Sennheiser is a cheaper Bose, less quality

Wow, you seriously have no idea what you're talking about. Sennheiser are one of the most respected headphone companies in the world and produce some of the best headphones, ask any audiophile. Bose are no different to beats overpriced crap, the only thing they have going for them is their marketing and a good example of that is the statement you just made.

Verbatim Cookie · Jan 11, 2013

Albright said:
Heh, before I saw this article, I thought Beats were made by the Monster Cable people they seem to use similar marketing strategies.

They are made by Monster. I, too, was unaware that Beats is its own company. I guess they have a licensing deal with Monster.

Mestys · Jan 11, 2013

Verbatim Cookie said:
They are made by Monster. I, too, was unaware that Beats is its own company. I guess they have a licensing deal with Monster.

They used to be made by monster but monster don't actually make the newer models anymore.

kokako · Jan 11, 2013

Beats is owned by Monster - it paid DRE to be the face of it's Beats line, like when Michael Jackson was the face of Pepsi until his hair caught fire.

Streaming is the future, great for consumers but for emerging artists forget about it (forget the springsteens and the rolling stones they have collected enough $) Artists make around 20cents on 2000 streams of a song of theirs! that's a joke. sell 2000 songs on iTunes and you net $1700.

But so as long as you're "consumer" and not a creator - you're going to certainly benefit from streaming services.

unplugme71 · Jan 11, 2013

hofer said:
I don't like subscription services, period. I don't need another service for which I pay a monthly fee whether I use it or not.

That is why I like the original itunes models. You like a song, and you buy it, No further obligations.

On the other hand, if I were running a business, a subscription service would be great. Nothing like a steady stream of revenue. But IMHO, as a consumer you get screwed unless you are an addict that listens 24/7.

I would pay $20 a month to listen to any song I want, when I want. It would be much cheaper than buying songs. I probably already spend about $30 a month, sometimes more buying tunes.

Sy7ygy · Jan 11, 2013

FreeState said:
And incredibly bad headphones that have been marketed brilliantly.

Armchair expert I see!

Have you ever OWNED a pair of Beats? They are NOT 'incredibly bad headphones' - only such an absurd statement from somebody who hasn't.

I own a pair of iBeats & Pro's - BOTH of which are stunning pieces of kit. Overpriced? Everything is overpriced.

I suppose you think Bose products are awful too, huh?

TallManNY · Jan 11, 2013

marv08 said:
"Recently, music streaming services like rdio, Pandora and Spotify have become increasingly popular and Apple is rumored to be working on a Pandora-like "iRadio" streaming service."

I read this a lot. But nobody gave any details. Exactly, what is the user base and revenue of rdio, Pandora and Spotify? How do they compare to the iTunes Store (members with credit card on file, sales, revenue, profits)? How much do musicians and composers get per song/album?

I personally prefer to buy albums/songs (my purchases are approx. 95% complete albums, the remaining 5% are mainly one-hit acts, ancient hits or simply funny/ridiculous stuff) and give the performers, lyrics writers and composers what they deserve. A great song (or instrumental piece) for 99 cents will be stuck in my brain forever, a $5 coffee in a paper cup turns into piss within a day.

Huge numbers of people are using Spotify and Pandora. Everyone I know uses them. But basically both companies are giving their product away for free. They can do this because they are funded by venture capital. They also pay nearly nothing for the songs that they play and they continually lobby congress to try to get those low fees lowered even more. The artists get nearly nothing out of the equation. The problem is that the venture capital won't last forever. They can do other equity offerings and maybe keeping going on. There are probably investors out there who hope a business model shows up. And they will fund for awhile. But there isn't a business model. The second they start adding more than just the most limited ads or the cheapest possible fees, they will lose all their listeners to the radio and those 99 cent singles.

Galatian · Jan 11, 2013

Sy7ygy said:
Armchair expert I see!

Have you ever OWNED a pair of Beats? They are NOT 'incredibly bad headphones' - only such an absurd statement from somebody who hasn't.

I own a pair of iBeats & Pro's - BOTH of which are stunning pieces of kit. Overpriced? Everything is overpriced.

I suppose you think Bose products are awful too, huh?

Not sure if this is sarcasm...because it sure sound's like it is, since both Bose and Beats are highly overrated and overpriced. People tend to think that more bass = better sound quality. Unfortunately our brain works that way. It's the first thing you notice once you try out a new headphone or loudspeaker. Let me tell you after you have grown accustomed to some "real" premium product (I proudly own custom made In-Ear - Jerry Harvey Audio 16 Pro) there is no going back. You will immediately hear how ****** everything else sounds. And in that respect most Bose products and all of the Beats products just sound the crappiest!

TallManNY · Jan 11, 2013

EbookReader said:
Apple need to get into subscription music business.

It's the fastest growing segment right now.

Right now in the USA:

Muve Music: 1.1 million paying subscribers
Rhapsody: 1 mil +
Spotify: 1 mil +

and other smaller players like XBOX Music, Sony Music Unlimited, MOG and Rdio.

Right but this is because these businesses are giving their product away for free. But they can't do that forever because they are just burning their venture capital to stay in business. They need to either (a) stop you from listening to music and force you to listen to commercials more or (b) charge higher monthly fees. They can't even pay the record companies or artists out of their revenues yet much less cover their costs. These companies lobby congress for relief from copyright restrictions so that they don't have to pay the artists to replay their music. Even though the payments are something like a fraction of a penny every time they send a song to a listener. But since they get basically no money back from their listeners even this is too much for them.

Free will be profitable, but it isn't sustainable.

kokako · Jan 11, 2013

Galatian said:
Not sure if this is sarcasm...because it sure sound's like it is, since both Bose and Beats are highly overrated and overpriced. People tend to think that more bass = better sound quality. Unfortunately our brain works that way. It's the first thing you notice once you try out a new headphone or loudspeaker. Let me tell you after you have grown accustomed to some "real" premium product (I proudly own custom made In-Ear - Jerry Harvey Audio 16 Pro) there is no going back. You will immediately hear how ****** everything else sounds. And in that respect most Bose products and all of the Beats products just sound the crappiest!

Bose and Beats are crap - there is no argument. We can try and educate kids about getting scammed in life by helping fading celebrities get richer but why bother let them learn, let them spend hundreds on crap headphones only to discover later that what they really needed was the headphones the artists use in the studio - SONY MDR-7506 for $99 they're professional not consumer, they're neutral not artificial. But if children want to play puppet drone let em, let them learn like we did, life's a short ride if I could do it all over again I'd listen to people warning me about buying ego driven celebrity endorsed *****

GoCubsGo · Jan 11, 2013

Why does Apple need to get into the subscription music business? I feel as though Spotify and Pandora provide me with all of my subscription music needs. Because of Spotify alone I have bought more music in 2012 than I had in 2011 and 2010 combined. I just don't see why people think we need another player in the mix when it seems as though these other companies are doing it right.

samcraig · Jan 11, 2013

jessica. said:
Why does Apple need to get into the subscription music business? I feel as though Spotify and Pandora provide me with all of my subscription music needs. Because of Spotify alone I have bought more music in 2012 than I had in 2011 and 2010 combined. I just don't see why people think we need another player in the mix when it seems as though these other companies are doing it right.

Because clearly they are not doing it right. And Apple would be the best. And once Apple launches their service - every other company should just shut down because they are crap.

janstett · Jan 11, 2013

Mr. Gates said:
Sorry "Dr." Dre ....But you didn't even pass MIDDLE SCHOOL , much less high school or college. Why exactly would I trust you to produce anything of quality ? ? ?

So many of our tech titans are drop outs -- Steve Jobs, Bill Gates, et al.

----------

unlinked said:
I think it is because they don't make enough money to be able to afford them.

Right, people who buy Apple products can't afford Beats headphones.

----------

kokako said:
Streaming is the future, great for consumers but for emerging artists forget about it (forget the springsteens and the rolling stones they have collected enough $) Artists make around 20cents on 2000 streams of a song of theirs! that's a joke. sell 2000 songs on iTunes and you net $1700.

But so as long as you're "consumer" and not a creator - you're going to certainly benefit from streaming services.

IMO streaming is the new radio. How much does the artist get paid when a song is played on the radio?

monkor · Jan 11, 2013

ronwasserman said:
To Jimmy and Doug.

Remember in 1999 when you signed my band because we were the biggest thing online?

Remember when you asked me what the future of the music business would be and I said 99 cent singles?

Remember how you both told me that (as well as subscription) services would never happen in your lifetime?

Glad to see you woke up during your lifetime.

It's too late now to implement your ideas in a way that would be as profitable as they would have been a decade ago.

Good Luck!

Ron

Dude did you create the Power Rangers theme song?

Beats CEO Jimmy Iovine Pitched Steve Jobs on Subscription Music Service

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