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Apple to Start Record Label with Jay-Z and Beyonce?

steve_hill4 said:
The moment I heard that Apple Corps and Inc settled their differences once and for all, I kind of foresaw Apple Inc getting into music producing more and more, but wasn't sure how. We know they've been doing exclusive deals/releases and "Live from London" etc through the iTunes Store, but to actually try and become a major producer is not something I believed would happen, at least this early on anyway.

Makes sense, but Apple need to ensure it is done correctly. The bigger they get, the more focus they lose. I would argue they perhaps need to split into proper, largely unrelated divisons with some collaboration when needed, but if more devices start to use versions of OS X, you'd only really have computers and devices as one division and music production and distribution as another.

Just don't diversify too much and become as unfocused as other companies like Microsoft. I'm already not entirely convinced Leopard is as big a leap forward as it should/could have been, please don't fall further behind the opposition in other areas. You could start by updating those iMacs next week.
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I agree with what steve_hill is saying it is soooo true! with that being said; when is Apple Inc's new campus schedule to open? And maybe I've fallen a sleep - but what did Apple ever do with that use data/call center they bought a year or more ago (the old building being built for WorldComm)??? makes you wonder a bit -- plus they have a nice amount of rainy day money sitting over in the Orchard

BUT this still seems like a big bite to me.
 
I hope this is not true. apple should not get involved with rap or hip hop or any of the S**T. It's totaly degrading, and should not be promoted by anyone.
 
Do not stereotype the entire genre of hip-hop/rap because you just listen to radio rap (or in your case(s) don't listen to it). That's the kind of music that the major recording labels force-feed America. Let's please not start rating this as 'Negative' just because you don't listen to rap, and let's not turn this into a thread about musical preferences. Thanks.
 
Project said:
I cant believe some of the stuff i'm reading in this thread.
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Yeah, apparently some people are more concerned about the genre than the idea itself. I wonder what reactions would be if it was all about their favourite artist... ;)
 
It's not very likely. Apple is not accustomed to high loss/high risk business. They prefer markets where they can make solid, consistently high margins and the music industry is exactly the opposite. Even with star power, music sales are inconsistent, highly risky and low margin.

It could happen, but it would be a serious case of overstretch and would create the kind of stock price fluctuations Apple is trying to avoid.
 
Yixian said:
I'd rather see Apple in movies or games but it'd be good to see them branch out with a music label.
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You are seeing Apple in movies. They own Pixar, remember. :) And Jobs is one of Disney's biggest shareholders. So that puts him into games as well, in a tangential sort of way.

It's the nature of all big companies in the U.S. to seek to branch out into other areas. That's diversification. The trick is to diversify into complimentary fields. The Jay-Z deal seems to fit in with Apple's overall direction.
 
rob@robburns.co said:
The strange thing is that Universal is trying to play hard-ball with Apple, when Apple is the only large music retailer selling music with DRM. Its like they want to shoot themselves in the foot. CD sales would be declining even faster than the already are if they playing field was equalized with respect to DRM (i.e., Apple has to include it while WaMart, Target and Best Buy do not).

As for Def Jam records, I wonder if more and more of these subsidiaries are going to think: "What do I need Universal for?" I could see this just opening the flood gates.
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My exact thoughts. Yet another paradigm shift in the making due to Thinking Different(ly).

jayducharme said:
You are seeing Apple in movies. They own Pixar, remember. :) And Jobs is one of Disney's biggest shareholders. So that puts him into games as well, in a tangential sort of way.

It's the nature of all big companies in the U.S. to seek to branch out into other areas. That's diversification. The trick is to diversify into complimentary fields. The Jay-Z deal seems to fit in with Apple's overall direction.
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Apple do not and never did own Pixar. Steve owned Pixar and sold it to Disney.
 
it's a done deal... and I expect that she'll sign.... Not to try and be too much of a word smith, but isn't that a bit of an oxymoron? :confused:

Macrumors said:
Tells our insider, "It's a done deal. [Jay Z] already has Beyonce and [Mathew Knowles] on board ... She'll be finishing up her contract [with Sony], and I expect that she'll sign on to the new label shortly afterwards."
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Soon Apple will be making toasters. But that's fine as long as we don't have to use their bread.
 
MrSmith said:
Soon Apple will be making toasters. But that's fine as long as we don't have to use their bread.
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They'll call it "iToast" and then Roxio will sue as it confuses it with Toast Titanium. Apple will settle and then take over the cooked bread market with their range of iBagel, MacCroissant and Waffle Pro accessories.

Then they will try to get into the fried breakfast market too and people, such as I, will complain about market dominance and de-focusing away from their core breakfast market.
 
I hope Apple is not opening its mouth so wide that it will eventually choke on everything (All markets) they try to eat now.

Such endeavors can cost huge money and bring nothing. In fact they can destroy core business as well.
 
Apple Record Label

It is not important who the artists are, what is important is a Label run by Apple Inc. The reason this is good for the artists is several fold.

It would enable Apple to pay the Artists in a more honest and straightfoward way based on sales and results. Imagine a model where Artists make 80% of all sales, and there success is based on sales of their own efforts.

The current crop of labels get an incentive to keep selling on iTunes as they do not with to lose there artists to Apple directly by seeing how a new age label could operate, would open them up to creating new deals for there artists that are far more fair then the current Label Practices.

Apple gets a new set of music and talent that they can use in future promotions, motion pictures, commercials, etc... creating a better bottom line to Apple while increasing exposure to the artists themselves.

I see no downside at all for Apple doing this in a way only Apple can do, This would be better yet if Apple refuses any ties to the RIAA or Sound Exchange. It would leech the major labels from there current power play and lessen DRM on some A Tier talents (I hate Jay Z and Beyonce but you can't argue with there success rates)
 
It sounds like a dubious move at first glance. But what better way to change the dinosaur recording industry than from the inside. I don't know how long this will hold Jobs' attention, but for the artists (Prince, Courtney Love, et al) who want to change the industry it gives them somewhere to flock to.

puckhead193 said:
maybe if apple got someone with some talent....
you can't spell crap without rap :D
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I'm not a big fan of rap music, I don't enjoy much of it especially the Gangsta strain. However, Jay Z is very talented. I was first exposed to him in the Linkin Park mashup "Collision Course". Jay Z's black album has been mashed to various other artists including Metallica (Cheap Cologne) and the Beatles (DJ DangerMouse). Give it a try, open your mind.

I used to hate Run D.M.C. in their day but in retrospect they were pretty good and loved rock too (ignoring "Walk this Way" which was heresy to me, check out the guitar riffs on "King of Rock" and "Rock Box").
 
If done at the right time, this could be a stroke of genius. Jobs has made no secret of hating the record companies(see his open letter), and has made it clear that he does not like the way they think. The record companies are still somewhat in the dark age- they don't want to release DRM-free tracks(with the exception of EMI), and they want to sue anyone who illegally downloads music- something which makes themselves and their artists look bad.

If Jobs was able to engineer a record label at Apple he could solve most(if not all) of these problems. He could make sure his label wouldn't sue people for downloading tracks, make sure that all tracks were available DRM free(maybe even lossless!), and could cut out the distribution of physical media(HUGE waste of materials) promoting Apple as the greenest record label.

The only problem with this would be that Jobs would need a LOT of support. Because if he pulled a record label with just Beyonce and Jay-Z, the record labels would conspire against Apple. They would refuse to sell music until Apple disbanded their record label. However- if Jobs was able to get a lot of major artists on board at the same time without the record labels knowing, then he could significantly weaken the record label's power to negotiate. If Jobs took the label's top earners, then possibly the labels couldn't AFFORD to say no to iTunes sales. It could be genius if done correctly.
 
Eric Lewis said:
this is better then iPhone rumors...
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Hey, lay off on the monster font, dude - your opinion isn't more deserving of screenspace than everybody else's.

But really, this belongs less here than iPhone rumors - even an iPhone is a Mac. A Mac with lousy coverage, but hey.

iAlan said:
Jay-Z sets up a 'recording company' which would offer it's artists the option of digital distribution through iTunes and physical CD distribution through an established label.

By not having the established label control both the digital and physical offerings (which is now the case) artists may see additional oppertunities to provide the music they want to provide in the way they want to provide it.
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This is brilliant. Jay-Z can use online music sales statistics to know when to press new bands onto CD for distribution. His risks lower, and iTunes becomes the new 'local clubs' circuit. Apple makes money and avoids alienating the other labels, upon which it depends.
 
nefarious said:
It is not important who the artists are, what is important is a Label run by Apple Inc. The reason this is good for the artists is several fold.

It would enable Apple to pay the Artists in a more honest and straightfoward way based on sales and results. Imagine a model where Artists make 80% of all sales, and there success is based on sales of their own efforts.

The current crop of labels get an incentive to keep selling on iTunes as they do not with to lose there artists to Apple directly by seeing how a new age label could operate, would open them up to creating new deals for there artists that are far more fair then the current Label Practices.

Apple gets a new set of music and talent that they can use in future promotions, motion pictures, commercials, etc... creating a better bottom line to Apple while increasing exposure to the artists themselves.

I see no downside at all for Apple doing this in a way only Apple can do, This would be better yet if Apple refuses any ties to the RIAA or Sound Exchange. It would leech the major labels from there current power play and lessen DRM on some A Tier talents (I hate Jay Z and Beyonce but you can't argue with there success rates)
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They don't want the headache. Revenue's by comparison to costs are pale and simply not worth the investment; this is not theory. It's about principles and not personalities (or the cult of). There are simply too many points of failure, conflicts of interest, barriers to entry, etc. You can't be everything to everyone.
 
Some need to stop worrying about the genre, and start to consider how huge the benefits could be of such a bold venture. If Apple succeeds in this, they will have control of the recording process from ground zero. This could mean lower prices, specialized content (videos from the studio/special live performances), not to mention solidifying Apple's popularity with a younger generation (whether you like that or not).

It needs to be understood that Jay-Z takes himself a bit more seriously that most of the other hip-hop artists out there. He actually brings some credibility to the genre. Now only if Kanye and Common would jump on board.

I am not even a fan of hip-hop. I just see an opportunity that, if true, will put Apple in a great position to redefine the market.
 
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