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Shock horror, an Apple exec claims their main competition is weak and won’t survive.....

I really wouldn’t take anything this man says seriously, I remember the endless execs and investors who claimed Netflix was weak and to not invest in them or use their service......
 
"According to Iovine, streaming services that offer content for free undermine the music industry and present a major problem"

No. Radio has been offering free music for decades. There isnt anything wrong with a free tier, its not competition. Its about access to what you want when you want and offline usage. A free tier wont give you those things.
 
Nowadays? No... it's always been like that. This isn't new. :)

A long time ago... the radio was used for promotion and you *might* make some decent money only if you sold a ton of records.

But you made your REAL money on the road.

Live shows and merch aren't some new secret. :p

Not entirely true, as radio stations do not play music 'for free', but artist gets compensated. Legendary are stories like those of the members from 70s band Slade who still earn a nice income from their Christmas hit back in the day that now is still popular on retro stations.

But as an artist you could make an income from actually selling your music on physical media and that option disappeared.
 
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Doesn't seem so at all. He's absolutely spot on. If Apple or Amazon decide to drop their prices on streaming services, they will really hurt Spotify.

Apple needs to drop the price! Amazon Music is a joke.


Remember that Apple has done in a year what it took Spotify more than 5 to do.

Well, when you have more cash on hand than any other company in the history of the world, that's an easy task to accomplish. I think more kudos should go to Spotify for doing it in JUST 5 years.
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Spotify has something Apple used to: a great user interface. (On the desktop at least. I'm a luddite and rarely use phones for anything but making calls.)

Don't even get me started on the disaster that is Amazon Prime Music.
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You're right, that's not what he said, it's the sub-text of what he said. You think he's some benevolent businessman giving out unbiased advice to his direct competitor that they really don't know or haven't considered? Come on. I'm not saying Spotify's business model is necessarily sustainable or lucrative, but at the same time he's mad they're a significant roadblock in his path to milking customers for all he can.

And you're right, he has been in the business a long time. Long enough to be partly responsible for the hot mess that is the music industry today. This guy doesn't have the best interest of the artists in mind. He's a front man for the labels and record execs. He's just trying to find the angle that nets the largest payday for the old guard, just like in the good old days when they could rape people's wallets.

Exactly...and does anyone find it interesting that Iovine jumped ship to Apple just as streaming was getting off the ground? Why go work for a big company when you had it all? Because he knows streaming is the next transition and Apple wants him to help make the most of it since he was so famously known for making as much for himself off of artists.
That’s a good joke. Lots of people would switch over to a cheaper streaming service if they had the same music. Maybe not everyone, sure, but don’t underestimate the power of saving money.

That's just it. Amazon doesn't have the same music. I pay $80 a year for Prime Music unlimited and just yesterday I picked an album to listen to, that had 18 songs. I get to number 5 and it starts over. I go look and 13 of those 18 songs are not available! Amazon Prime Music "Unlimited" is a flat out rip off and a joke. The interface is maddening! And you can't add more than 3 songs to My Music at a time without it getting an error that says "please wait while your music is updated" "try back later"....complete crap that I will not be renewing. I will be going with Apple Music.
 
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Shock horror, an Apple exec claims their main competition is weak and won’t survive.....

I really wouldn’t take anything this man says seriously, I remember the endless execs and investors who claimed Netflix was weak and to not invest in them or use their service......

Was Netflix losing money every single quarter with no real plan for profit?

Apple needs to drop the price! Amazon Music is a joke.




Well, when you have more cash on hand than any other company in the history of the world, that's an easy task to accomplish. I think more kudos should go to Spotify for doing it in JUST 5 years.
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Don't even get me started on the disaster that is Amazon Prime Music.

Money doesn’t buy subscribers. It just gives you time to build it out yourself. And I highly doubt Apple has spent that much more than whoever is funding Spotify’s losses anyway.
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Apple needs to drop the price! Amazon Music is a joke.




Well, when you have more cash on hand than any other company in the history of the world, that's an easy task to accomplish. I think more kudos should go to Spotify for doing it in JUST 5 years.
[doublepost=1512046657][/doublepost]

Don't even get me started on the disaster that is Amazon Prime Music.
[doublepost=1512047826][/doublepost]

Exactly...and does anyone find it interesting that Iovine jumped ship to Apple just as streaming was getting off the ground? Why go work for a big company when you had it all? Because he knows streaming is the next transition and Apple wants him to help make the most of it since he was so famously known for making as much for himself off of artists.


That's just it. Amazon doesn't have the same music. I pay $80 a year for Prime Music unlimited and just yesterday I picked an album to listen to, that had 18 songs. I get to number 5 and it starts over. I go look and 13 of those 18 songs are not available! Amazon Prime Music is a flat out rip off and a joke. The interface is maddening! And you can't add more than 3 songs you My Music at a time without it giving an error that says "please wait while your music is updated" "tray back later"....complete crap that I will not be renewing. I will be going with Apple Music.

Amazon has a streaming music service you can pay for.

https://www.amazon.com/gp/dmusic/promotions/AmazonMusicUnlimited
 
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had family apple music, but it was not good enough. I wanted to listen at home an did not work that well. I just did not want to be bothered searching and playing music. Kids did not care. they have Spotify now, students pay like 4 euro a month. Apple could combine it with movies, but on the other hand Netflix is perfect for us.
Amazon Prime is rubbish.
 
Digital music sales have become an acceptable loss leader for the big tech industries. Just like milk, sugar and bread are the traditional loss leaders for the big supermarkets like Walmart or Sainsbury's (in the Uk).

The big tech companies don't need to turn a profit on music sales. Music is the attraction to the market place, encouraging the purchase of the higher priced, better margined products they produce. If Apple give away music (That is someone else's product) for a rock bottom price, what do they care? They're using these music sales to sell an iPhone, that they make 200% + profit on. Just like a supermarket selling cheap Milk, to help sell expensive yogurt. Its the same financial model. Just with music. Music that we love. That we have grown up with. That has been devalued.

Loss leader or Bait and Switch??? Feels more like Bait and Switch every day.

And someone's comment on vinyl. It's just more marketing for high end audio because digitial got the point where it had nowhere to go for better sound (which, sounds fantastic on a good system). Vinyl sound can't be replicated amongst users like digital can because there are so many 'analog cogs' in the chain. The audio industry LOVES this fact and is marketing and capitalizing on it.
 
Is iTunes ever going to support FLAC? I have stuff from Tidal (that isn’t available in iTunes) I’d love to import into iTunes but converting FLAC files to the iTunes equivalent is a pain.
 
I watched the entirety of "The Defiant Ones". I was left feeling as though Dr. Dre was a talented visionary and Jimmy Iovine was one of those cats who just happened to be in the right place at the right time his entire life.

I really don't have much appreciation for "producers". Truth be told, with the level of fame attained by Fleetwood Mac, it was a bit of a no-brainer that Stevie Nicks solo career was going to be huge, at least for the first album.

Producers like Jimmy Iovine and Rick Rubin are overrated.


since its so easy its a wonder youre not doing it
 
Where does he think music will go from streaming? He’s talking out of his behind most of the time

I think the point he is trying to make is that nobody knows where its going next... which is valid point. Think of all the record stores which sold CD's that have gone out of business because that was their only business. Spotify is the 2017 version of that, except instead of CD's its streaming music... I know its hard to picture music going to a different format but people probably thought the same thing when tapes were around, and probably thought the same when CD's were out... They certainly thought MP3 players were it..... Something new will come along eventually and those who rely on this format as their only source of income will go the way of record stores.
 
That's not at all what he said. What was actually said was that Spotify is in a dangerous place because they have nothing other than streaming to offer. If something happens tomorrow and Apple or Amazon drop the price of their streaming service to $1.00 a month, Spotify is out of business. Google, Amazon, and Apple would live on, as they have something else to offer. Spotify doesn't.

Iovine has been in the business a long time and understands it. It's a business that has seen a lot of change in recent years and throughout history. Betting everything on streaming remaining the only way is a fools bet. It'd be much smarter to place bets in more than just a single place.

He doesn’t care if Spotify goes down under - he is only worried that they would have to reduce their price to compete.
 
The idea of going back to physical media is simply laughable. Are you trolling?
Not laughable - there is a space where physical media can exist in a digital world.

Vinyl is so in demand right now pressing plants can't even press records fast enough to hit release dates.

I think we are seeing a rise in physical media for the listener that has a set up in their home - be it a stereo system or a room in their house where they just want to chill without any distractions and there is a record player. Those are people that do not mind to tune other things out and interact with a physical copy (i.e. getting up every 20 min to flip to a different side).. then when those same people want to leave their home and go in their car, they just hop on a streaming service and pick whatever they want.

Vinyl is back - physical media has never completely died. Its shown signs of death but whenever it's close, it gets revied. Vinyl or physical media will never be the way people mainly listen to music, but it will always be around, the numbers have shown that more and more people are purchasing it.

Physical sales are up - and there is a way digital and physical media can coexist - and it's already happening.
 
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I watched the entirety of "The Defiant Ones". I was left feeling as though Dr. Dre was a talented visionary and Jimmy Iovine was one of those cats who just happened to be in the right place at the right time his entire life.

I really don't have much appreciation for "producers". Truth be told, with the level of fame attained by Fleetwood Mac, it was a bit of a no-brainer that Stevie Nicks solo career was going to be huge, at least for the first album.

Producers like Jimmy Iovine and Rick Rubin are overrated.


Haven't seen the doc but I'm guessing it gives a simplistic view of Iovine. Stevie Nick is just a blip on his resume. You need to go back to his beginnings to see how extraordinary his career has been. He engineered some of the best sounding hit albums of the '70s. He has been involved with companies and sold them, bought them back at a fraction, sold them high again, went somewhere else, built it up, sold for 10 times original value, etc. More than a few times the value of a company he sold went down because the new owners did not have the vision. He bought back at a bargain and soon the company was can industry leader. His career running Interscope is unlike nearly any other music executive as far as major accomplishments over a long period.

Iovine and Rubin are practically polar opposites. Rubin's approach is to put the artist in a comfortable setting and capture what comes out of them as they do their thing, and never with the end buyer in mind. Iovine, as a record producer, was always about giving the listener what they want rather than telling them to like something different. His records sounded like they did because of him. He wasn't a non-technical guy who was lucky to be around hitmakers. To use the Stevie Nicks example, Bella Donna sounded like it did in huge part because of Iovine, as did all the records he produced even when he stopped engineering.

I do find his statements about streaming companies amusing and faulty, though. The problem with Spotify et al isn't that they haven't found a way to monetize streaming. The problem is that artists get such microscopic returns from such services (publishers can sell whole catalogs for a flat fee, which the artist sees none of, only getting pennies of royalties) that they have no incentive to support them and it has created an adversarial relationship, which never works if there's no money involved. Artists must manage themselves, tour small with few expenses, sell their own merch and CDs at shows and have websites capable of being full fledged commerce sites for their product. The streaming companies, for the most part for most artists, are not career aids. Most would say "Please don't stream my music. Please buy it instead."
 
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Exclusive content and services or unique ecosystem capabilities is all you ever have to work from. Apple does not have the content and man are they late to the game.
 
Exclusive content and services or unique ecosystem capabilities is all you ever have to work from. Apple does not have the content and man are they late to the game.

Fragmentation is never good for a consumer nor content maker. It's only good for a provider. I will not be surprised if we see iTunes. Tidal, Spotify, Beatport exclusive mixes. I think musicians more than ever have the freedom they always wanted to do whatever they want to but somehow they fail to capitalize on selling the music. They still didn't find the right way.
 
"Leaner run Spotify." You know Spotify isn't profitable right? They lost $581.4 million in 2016. That's more than double the previous year. Spotify can't continue seeing those type of losses if they want to become a viable company in the future.

No, I don't specifically follow the streaming industry that close or keep an eye on their financials. However, smaller companies are typically run leaner as they have no choice, so it was an assumption. I wonder what Apple's profits from Apple Music look like.

I will say Spotify did open in 2008 and is still here as one of the best music streaming options, so saying they are not "viable" may be misleading.
 
I think the point he is trying to make is that nobody knows where its going next... which is valid point. Think of all the record stores which sold CD's that have gone out of business because that was their only business. Spotify is the 2017 version of that, except instead of CD's its streaming music... I know its hard to picture music going to a different format but people probably thought the same thing when tapes were around, and probably thought the same when CD's were out... They certainly thought MP3 players were it..... Something new will come along eventually and those who rely on this format as their only source of income will go the way of record stores.

What’s after streaming? Back to vinyl? Haha
 
I still want to own my music. I don't need ALL THE MUSIC. Because 90% of it is garbage.

90% of Netflix is garbage too but most would consider the days of buying their entire film collection instead of using a streaming service over.
 
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The fact that Apple sees the need to add video content to their music streaming service to make it more appealing to the masses is sad in and by itself. Music deserves better, but I really can't blame Apple or Amazon for using music to sell more of their own stuff as long as record labels can't come up with a better way forward.
 
I think it's kind of funny the entire purpose of these services (aka music) is completely left out of the picture. How about developing a platform that actually benefits artists at all stages. What most would support them and allow them to continue making new stuff. Who cares about lining apple's pockets?
 
That's not at all what he said. What was actually said was that Spotify is in a dangerous place because they have nothing other than streaming to offer. If something happens tomorrow and Apple or Amazon drop the price of their streaming service to $1.00 a month, Spotify is out of business. Google, Amazon, and Apple would live on, as they have something else to offer. Spotify doesn't.

Iovine has been in the business a long time and understands it. It's a business that has seen a lot of change in recent years and throughout history. Betting everything on streaming remaining the only way is a fools bet. It'd be much smarter to place bets in more than just a single place.

Jimmy hardly seems to understand the bigger picture and his own role in it.
Markets gets spoiled by false competition from cross-subsidized companies.
This is essentially what Apple is doing in the Music streaming market as per Jimmy's own policy.
So there is no problem if market regulators do what they should do: take out cross-subsidized Apple Music, Amazon Prime and guys like himself in order to re-establish and stabilize markets with healthy margins. Removing overcapitalized services (incl. VP's like himself) would offer artists their fair share of profits - instead of a race to the bottom that nobody survives.
 
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I could not care less for Planet of the Apps and Carpool Karaoke, but in my opinion Movies related to actual Music would fit far better to Apple Music. Like concert movies, band documentaries, live concerts like the London Roundhouse events, things like MTV unplugged, more stuff like that.

Speaking of which I would highly recommend you to watch "Anvil - The Story of Anvil" and Foo Fighters "Back and Forth" if you are into rock music and documentaries like I am.
 
I don't really care for the guy, but what he's saying isn't wrong by any stretch of imagination. It's a theory called media synergy, it's when a business has something to fall back on if one venture fails. So if a hypothetical Disney movie is a flop, they still have parks, cruises and TV channels that keep it in sustainable positions.

That's essentially what all of these companies are doing, with the exception of Spotify that has most of its eggs in one basket. So if some dramatic shift in the industry were to occur, then they wouldn't have much to fall back on.

This is coming from a 3-years-and-counting Spotify premium subscriber that dislikes AM.
 
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