Apple Playing 'Catch Up' With Beats Acquisition as Music Labels Push for Subscription Services

[Jay42]

Let them push, its going back to the old model and bad for consumers!!! You have to subscribe to get one song.

Everything is going to subscription from Games, to Music, to Software, etc and its bad for consumers!!!

People need to stop buying into these subscription based models or they will just keep coming!

You assert your opinion as if its a fact. Not every consumer is like you.

Some consumers, including me, love the subscription model. It makes sense, is cost effective, and I like not having to decide if an album is worth purchasing.

Do you think Netflix is a bad idea too? Bad for consumers? Some prefer to rent, and Apple is smart to make this an option for its customers.

 

[DTphonehome]

Still not understanding why they needed to spend $3.2 billion to do this. Apple could easily build up iTunes radio without having to bring some other company on board to make it happen.

 

[ineedamac]

...could pay for itself in a relatively short period of time and actually provide Apple with a low-cost entry into subscription music services on the side.

This goes against what others are saying about the deals Beats have with the music labels.

http://daringfireball.net/linked/2014/05/08/beats

 

[unobtainium]

Beats would give Apple an instant presence on Android and WP. There are a lot of Android users who would never download iTunes for Android, but already have Beats on their phone. Also, the headphone line is very profitable and would pay for this deal in a decade by themselves.

They'll almost certainly discontinue the Android and WP versions as soon as they're contractually able to.

 

[avanpelt]

Why not just buy Pandora or Spotify?

Just because Apple has the cash reserves doesn't mean they can buy anybody they want to. Some companies will refuse to sell at any price for one reason or another.

 

[unobtainium]

Beats would give Apple an instant presence on Android and WP. There are a lot of Android users who would never download iTunes for Android, but already have Beats on their phone. Also, the headphone line is very profitable and would pay for this deal in a decade by themselves.

Still not understanding why they needed to spend $3.2 billion to do this. Apple could easily build up iTunes radio without having to bring some other company on board to make it happen.

iTunes Radio has zero on-demand streaming and zero on-demand contracts with record labels.

 

[Chupa Chupa]

Still not understanding why they needed to spend $3.2 billion to do this. Apple could easily build up iTunes radio without having to bring some other company on board to make it happen.

Obviously it couldn't or it wouldn't be blowing 3.2B. Remember if this blows up in Apple's face ( Don't think it will) Tim Cook will have a lot of 'splanin to do to the Board & shareholders. They'll want his head on a platter. It's not a move w/o personal risk so it's being done b/c Beats has something Apple needs. None of us are privy to the whole story yet.

 

[unobtainium]

Just because Apple has the cash reserves doesn't mean they can buy anybody they want to. Some companies will refuse to sell at any price for one reason or another.

Spotify wouldn't sell for $3bn.

 

[DTphonehome]

iTunes Radio has zero on-demand streaming and zero on-demand contracts with record labels.

Apple doesn't magically get to incorporate those negotiated contracts.

 

[Razeus]

Measuring Not Getting the Cloud

Apple always fails at everything, except in comparison to anyone else.

You think this means Apple gets the cloud? Do you even use their cloud services? If you do, you wouldn't post this nonsense.

 

[Zerilos]

Still not understanding why they needed to spend $3.2 billion to do this. Apple could easily build up iTunes radio without having to bring some other company on board to make it happen.

The goal is to have a presence on Android.

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They'll almost certainly discontinue the Android and WP versions as soon as they're contractually able to.

Positive you are wrong. Why would they?

 

[KALLT]

Besides, I think (and I might be wrong) artists don't get a lot of money from subscription services.

It’s true. You need sufficient scale to get an acceptable return off Spotify. Needless to say, it are the major labels who disproportionately profit from it.

 

[Chupa Chupa]

They'll almost certainly discontinue the Android and WP versions as soon as they're contractually able to.

Or all free standing versions and just incorporate it into iOS' Music app & iTunes similar to how it killed the Siri app after it bought that service.

 

[Zerilos]

iTunes Radio has zero on-demand streaming and zero on-demand contracts with record labels.

Ok. Not 100% sure what your point is.

 

[unobtainium]

Apple doesn't magically get to incorporate those

They might in this case. Either way, they get Iovine, who sits on a couple of very important boards and has extensive industry influence.

 

[Nalmond92]

one thing i have not seen anyone comment on.

Some phones have 'beat' speakers or beat something built into them. I have never experienced tremor heard the difference but i imagine that technology could bemused in ALL apple hardware to increase sound quality.

So apple get:
Streaming system
Improved audio in devices
Proper headphones (big headphones for a big screen)
All the Beats team - these guys know a lot about music - And loveine is very important in the industry

Combined with HD iTunes?

Apple could produce the best sounding post pc era devices out there. The only question is.. Do the general public care?

 

[Rogifan]

So is this Cook and the Board saying Eddy Cue either has too much on his plate or isn't the guy to take iTunes where it needs to go?

 

[rish]

Not a Subscription Fan

Subscription services have one disadvantage - if for any reason you decide to drop out after a year or two you're left with no albums at all.

I've tried Spotify and Deezer but for me "owning" tracks is too important. Besides, I think (and I might be wrong) artists don't get a lot of money from subscription services. Since I usually buy music/books to show appreciation I don't like it.

Why I've begun purchasing CD's. Downloading albums is still too expensive despite there being no physical packaging! I understand that you don't really own your downloads nor can you pass on your music collection as part of a will? At least my cd's can be passed on. I don't particularly want to pay for music I won't ever own but like the idea of radio as long as it's cost free.

 

[512ke]

Apple playing Catch Up. Well, that's a fat lot of editorializing and speculation about why Apple bought Beats.

Whatever. Fine. Apple's playing catch up. Okay now they CAUGHT UP. They are CAUGHT UP.

So the meme can die. Bye.

 

[Rogifan]

It's not the system, it's the contracts. Spotify pays too much for each song. Beats probably negotiated better deals.

Also, there's the matter of time. If Apple buys Beats outright they can launch this thing soon.

You really think what Beats negotiated would transfer to Apple?

 

[BaldiMac]

You think this means Apple gets the cloud?

No, it means that you shouldn't just repeat overly broad claims as fact just because the over-simplified quote you read on the internet fits your perception.

Apple may not get some parts of the cloud, but it certainly gets a very profitable part of it.

Do you even use their cloud services?

Yep. The ones that I rely on work for me. However, I do prefer other cloud providers for different things, even when Apple offers a competitive solution.

If you do, you wouldn't post this nonsense.

Nonsense? The article contained straight up facts. Sucks that you have to dismiss the facts just because they disagree with your perception.

 

[unobtainium]

Ok. Not 100% sure what your point is.

Signing those contracts takes a looooong time.

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You really think what Beats negotiated would transfer to Apple?

You really think Apple paid $3.2bn for nothing?

 

[DTphonehome]

The goal is to have a presence on Android.

Beats music doesn't have that many subscribers. Apple could whip together an android app in an afternoon.

 

[Benjamins]

It's about negotiating contracts. Prices and terms can vary greatly. Spotify has never been profitable, despite the hype, but Beats certainly is. And with his industry influence and contacts, Iovine is very valuable.

again for 3 billion I doubt you can't get all the labels on board.
I don't see how one human could worth 3 billion or even 1 billion.

 

[nol2001]

spotify playlist transfers

if Apple launch a Spotify style service, I wonder will it be possible to export my spotify playlists into Apple's one?

not being able to take the 4,000 spotify songs could be a big barrier to leaving Spotify.