iTunes Hits New Milestones, Will Help Leverage Growth of Beats' 250,000 Subscriber Base

MacRumors · May 28, 2014

Speaking at today's Re/code Code Conference, Apple's SVP of internet services Eddy Cue and Beats co-founder Jimmy Iovine shared some new numbers on iTunes and Beats Music in the wake of today's acquisition.

Apple internet chief Eddy Cue (left) and Beats co-founder Jimmy Iovine (right)

Cue mentioned that the iTunes Store and iTunes Radio hit new milestones, with the former selling its 35 billionth song and the latter now including over 40 million listeners around the world.

Speaking on the newly formed relationship between Apple and Beats, Cue noted that Apple's great rapport with artists, data on listening habits, and 800 million iTunes accounts with credit cards attached contributes a great deal. "We think all of those things, when you put them all together, it's on steroids with us together," he expressed.

Meanwhile, Iovine announced that Beats Music, currently limited to the U.S., now has 250,000 subscribers since it launched three months ago. A report earlier this month pegged the service's subscriber base at just 110,000 during the month of March, illustrating how the service has grown since then. By contrast, rival music streaming service Spotify reported earlier this month that it has 10 million paying subscribers worldwide.

Iovine added that Beats made a mistake by not offering in-app purchases from the start, and stated that 5 million people have "visited" the service since it launched. After today's announcement, the Beats Music iOS app was updated with an extended 14-day trial period and a price drop to its yearly subscription to $100 from $120.

Article Link: iTunes Hits New Milestones, Will Help Leverage Growth of Beats' 250,000 Subscriber Base

CrazyForApple · May 28, 2014

I hope they won't add Beats to iTunes and make it another Ping

Agent OrangeZ · May 28, 2014

I was hoping for Apple to convert the service to some sort of buy up for iTunes Match. Make iTunes Match free, and offer streaming for $49.99 per year. THAT would make waves!

macs4nw · May 28, 2014

MacRumors said:
…..Meanwhile, Iovine announced that Beats Music, currently limited to the U.S., now has 250,000 subscribers since it launched three months ago. A report earlier this month pegged the service's subscriber base at just 110,000 during the month of March, illustrating how the service has grown since then…..

Article Link: iTunes Hits New Milestones, Will Help Leverage Growth of Beats' 250,000 Subscriber Base

That's actually quite impressive, for an upstart, in an industry that's getting pretty crowded.

bpeeps · May 28, 2014

There's just something about actually owning the physical copy that appeals to me so much more than streaming.

hlfway2anywhere · May 28, 2014

bpeeps said:
There's just something about actually owning the physical copy that appeals to me so much more than streaming.

You can do both pretty inexpensively.

I only buy physical copies on vinyl, because CDs are pretty pointless at this point. They're just a vessel to get the songs onto your portable music player and then end up on a shelf or in a box somewhere in my case.

Vinyls have a totally different novelty to them with huge artwork and whatnot, so I love them.

I buy the albums I really want to own, and else I just stream.

EdgardasB · May 28, 2014

The main problem with Apple streaming service is that way too small list of available countries. Even they can't extend for more than years iCloud two-step authentication to more countries while other IT companies have alread done long time ago

borneo76 · May 28, 2014

when it will be able to streaming outside the U.S?

lk400 · May 28, 2014

Not a bad interview, but didnt really bring up anything new. Apple like beats, been working together with Iovine for a long time, want the streaming service, want the headphones too, see benefit in Iovine's links to the industry... etc etc. I wasnt expecting revealing their secret plans, but was hoping for something more than the obvioius.

I guess time will tell.

0xyMoron · May 28, 2014

Hands-off approach and this might actually make Apple an important player in the music streaming business.

sputnikv · May 28, 2014

i downloaded the beats music app out of curiosity, and this might not be saying much, but it kicks the crap out of apple's itunes match and itunes genius with regards to speed and recommendations respectively. i actually very much like it

ksuyen · May 28, 2014

sputnikv said:
i downloaded the beats music app out of curiosity, and this might not be saying much, but it kicks the crap out of apple's itunes match and itunes genius with regards to speed and recommendations respectively. i actually very much like it

Well it's a moot point since Beat is Apple's now.

tdtran1025 · May 28, 2014

As much as Iovine likes to extoll the virtue of "whats next", Beats is irritating. It does not let me input the first choice as it forces me to accept lousy offerings till. I get tired of it and shut it off. I don't see any ingenuity in it Iovine!
And your headphones are not worth the price.
3bn dollars for those two guys to negotiate music royalties is nuts. Apple could have lessen demand, take a smaller profit and labels would sign.

LastQuadrant · May 28, 2014

1080p said:
I was hoping for Apple to convert the service to some sort of buy up for iTunes Match. Make iTunes Match free, and offer streaming for $49.99 per year. THAT would make waves!

Yeah, it would also make Apple make no profits. I think they need to increase the file size limitations with Match since there are people that are using 24 bit sound files and concerts where the file exceeds Apple's limitations and won't allow them to be stored on the servers.

I don't mind paying for Match because it's not that expensive to store on servers so I can have the content backed up safely, I just need them to allow larger files sizes.

As far as Beats is concerned? I just tried Beats Music trial. HATED IT. They paid $3 Billion for this? What a joke. It's awful. Now I see why Beats Music didn't get many subscribers.

I think Cook was stupid allowing Dre and Iodine as part of Apple. Dre is going to damage Apple's reputation amongst the educated crowd of people that are disgusted by Dre's music and the crowd of people he is associated with. Dre isn't a positive representation of the Black Community and it sets a bad example. Iovine isn't what I consider the best the music industry has to offer. He may know what the kids want, but that's not the only crowd Apple has to cater to. I think Apple would have better to have done a subscription service on their own, and if they wanted the headphone market, they could have easily spent far less money in having a better line of headphones created/mfg and just spend more time rather than trying to "BUY" into the market. Since Apple probably sells a large amount of Beats Headphones, it wouldn't be too easy to unseat them. All they would have to do is come out with a few models of headphones, removing the Beats headphones from the stores and putting their own headphones on the shelves instead. They could have gotten a cross section of the music industry that ranges from all of the styles of music to approve and endorse Apple's own design rather than just the rap/hiphop/superficial pop world endorsing Beats.

I think Cook has lost his mind, as far as I'm concerned, he blew it, and there might be some backlash because there are a lot of educated cultured people that do NOT endorse the thug/gang mentality that Dre brings to the table. He is DEFINITELY not a representation of the entire Black culture of America or the world for that matter. He and his buddies are illiterate, thugs that degrade women, each other, and promote a VERY disgusting way of life that Apple doesn't need.

sw1tcher · May 28, 2014

Meanwhile, Iovine announced that Beats Music, currently limited to the U.S., now has 250,000 subscribers since it launched three months ago. A report earlier this month pegged the service's subscriber base at just 110,000 during the month of March, illustrating how the service has grown since then.

But how many of those 250,000 are paying subscribers vs those still on a free trial?

After today's announcement, the Beats Music iOS app was updated with an extended 14-day trial period

TsMkLg068426 · May 29, 2014

Yeah! Need some more Rap and Pop music when listening to a Trance artist in iTunes radio this all will improve iTunes radio.....

Agent OrangeZ · May 29, 2014

LastQuadrant said:
Yeah, it would also make Apple make no profits.

You are missing the big picture. Music has NEVER been a direct profit driver for Apple. Apple has always used music to sell HARDWARE. iTunes was created to sell iPods. iCloud was created to sell iOS devices, and Macs. Apple creates these free/cheap services that are designed to lock you into their ecosystem and force you into buying their hardware. Apple is merely reacting to industry changes. People want streaming subscriptions instead of buying tracks. Apple could offer it at $49-59 per year, not make any money on it directly, but could use it to drive iPhone, iPod and iPad sales.

freddiecable · May 29, 2014

Only US?

Not even close to million users?

This has to be scaled fast to make sense.

Also - why not also buy dropbox to improve iCloud?

For headphones - Beyerdynamic is My choice for sound quality.

captain kaos · May 29, 2014

5 million may have visited, but with 250,000 signed up thats 4.75million that decided not to go ahead....

macplay · May 29, 2014

Is it just me..or the looks of Jimmy area bit similar to Steve Jobs

Cigsm · May 29, 2014

iTunes Hits New Milestones, Will Help Leverage Growth of Beats' 250,000 Subsc...

Your ignorance is absolutely astounding. If you don't think a man who has gone on to make half a billion dollars on his own as not only a successful recording artist, not only a successful producer, but a successful businessman is a positive representation of the black community, then you're a few crayolas short of a crayon box.

Spotify started didn't start out with millions of subscribers. These guys have been out 3 months and they've got a quarter of a million subscribers already.

I'm a highly educated person and I absolutely love Dre, so your argument holds absolutely zero water.

LastQuadrant said:
Yeah, it would also make Apple make no profits. I think they need to increase the file size limitations with Match since there are people that are using 24 bit sound files and concerts where the file exceeds Apple's limitations and won't allow them to be stored on the servers.

I don't mind paying for Match because it's not that expensive to store on servers so I can have the content backed up safely, I just need them to allow larger files sizes.

As far as Beats is concerned? I just tried Beats Music trial. HATED IT. They paid $3 Billion for this? What a joke. It's awful. Now I see why Beats Music didn't get many subscribers.

I think Cook was stupid allowing Dre and Iodine as part of Apple. Dre is going to damage Apple's reputation amongst the educated crowd of people that are disgusted by Dre's music and the crowd of people he is associated with. Dre isn't a positive representation of the Black Community and it sets a bad example. Iovine isn't what I consider the best the music industry has to offer. He may know what the kids want, but that's not the only crowd Apple has to cater to. I think Apple would have better to have done a subscription service on their own, and if they wanted the headphone market, they could have easily spent far less money in having a better line of headphones created/mfg and just spend more time rather than trying to "BUY" into the market. Since Apple probably sells a large amount of Beats Headphones, it wouldn't be too easy to unseat them. All they would have to do is come out with a few models of headphones, removing the Beats headphones from the stores and putting their own headphones on the shelves instead. They could have gotten a cross section of the music industry that ranges from all of the styles of music to approve and endorse Apple's own design rather than just the rap/hiphop/superficial pop world endorsing Beats.

I think Cook has lost his mind, as far as I'm concerned, he blew it, and there might be some backlash because there are a lot of educated cultured people that do NOT endorse the thug/gang mentality that Dre brings to the table. He is DEFINITELY not a representation of the entire Black culture of America or the world for that matter. He and his buddies are illiterate, thugs that degrade women, each other, and promote a VERY disgusting way of life that Apple doesn't need.

malexandria · May 29, 2014

Android for iTunes?

Since Beats was built for Android, does this mean we could see iTunes compatibility with Android or will Apple makes Beats an iOS exclusive? I'm guessing it'll be iOS exclusive but it would be cool if it was the former. At the very least I'm hoping we'll finally get a new, modern iTunes - but then maybe not since Apple's recent UI Moves (iMovie comes to mind) have been terrible.

Smigit · May 29, 2014

freddiecable said:
Only US?

Also - why not also buy dropbox to improve iCloud?

I recall reading an article that stated Jobs was in talks to buy them but Dropbox ultimately turned him down. iCloud was then developed as a response.

orthorim · May 29, 2014

bpeeps said:
There's just something about actually owning the physical copy that appeals to me so much more than streaming.

My wife has started to just 'stream' everything from YouTube. All the music is there anyway, there's playlists, and it works really well.

Pretty much everyone's doing that now. It proves that streaming can be a good thing. I am not sure how you'd convince people that they should pay for it, given that they already get it for free, but I suppose I'd start by offering a better service than YouTube. Maybe Beats streaming is that better service?!

Another note: Jesus H Christ, 800 Million credit cards? That's insane. There is so much they could do there...

----------

malexandria said:
Since Beats was built for Android, does this mean we could see iTunes compatibility with Android or will Apple makes Beats an iOS exclusive? I'm guessing it'll be iOS exclusive but it would be cool if it was the former. At the very least I'm hoping we'll finally get a new, modern iTunes - but then maybe not since Apple's recent UI Moves (iMovie comes to mind) have been terrible.

I am thinking, and hoping, that they won't be iOS exclusive. I'll stick with iOS personally but I think it's almost always a mistake to limit your whatever added value service to your own platform.

Hopefully Beats will remain an independent subsidiary and do their own branding, marketing, and also services. I am pretty sure they will after all a big chunk of the value of Beats is it's outstanding branding / marketing.

JGIGS · May 29, 2014

I think subscription is the answer for artist and customers. It's just who's going to do it better and who will have all the artist/albums.
I still think think apple could have done a better or just as good a job without acquiring beats but maybe they were having issues with the record companies getting a deal done so they bought into it. Only explanation I can think of. That and they want to be in the headphone business?

iTunes Hits New Milestones, Will Help Leverage Growth of Beats' 250,000 Subscriber Base

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