Eddy Cue and Jimmy Iovine Discuss State of Streaming and Growth of Apple Music

[MacRumors]

One of the biggest updates announced for iOS 10 centers around the new design of Apple Music, which the company hopes will simplify its music streaming service into one that better introduces its users to new favorite songs, and is less of a hassle to navigate than the current version.

To discuss the nuances of the revamped service, Eddy Cue, Jimmy Iovine, Trent Reznor, and Robert Kondrk sat down with Billboard, commenting on the importance of Beats 1, the steady growth of Apple Music, and the much-talked-about slow death of downloaded music in iTunes.

Billboard asked Cue and Reznor about a "streaming-only future," but the former reassured fans who prefer to download music by saying that "there's no end date" to paid music services like iTunes, which "is doing very well," Cue said. Reznor admits that such a future is probably inevitable, but doesn't see why paid and streaming music couldn't coexist simultaneously, similar to the niche buyers market of vinyl records today.

Eddy Cue: There's no end date, and as a matter of fact, they should all be surprised and thankful to the results that they're seeing because our music iTunes business is doing very well. Downloads weren't growing, and certainly are not going to grow again, but it's not declining anywhere near as fast as any of them predicted or thought it would. There are a lot of people who download music and are happy with it and they're not moving towards subscriptions. We talked about subscriptions bringing a lot of new customers in, people who have never bought music. And if you look at Apple's music revenue on a quarterly basis, because of subscriptions and because of sales, it's now higher; it's actually growing, which is great for the labels.

Trent Reznor: It feels as though we've turned a corner in terms of the adoption of streaming. I think it's inevitable that downloads will diminish, much like CDs. But I've started buying vinyl -- probably out of nostalgia, but also there's something about a physical thing that has meaning to me as an artist. I think coexistence can take place.

When addressing the concern that Beats 1 wasn't directly mentioned during the WWDC keynote, Iovine promised that "Beats 1 is going to be creating a lot more content as well," besides being a part of the overall Apple Music design change. This content encompasses video, according to Iovine, who didn't directly mention which rumored scripted TV project this might entail, but said the team is currently focusing on the "impact" the radio service has as part of the overall music ecosystem at Apple.

As usual, Cue wasn't ready to divulge specific numbers regarding the conversion rates of users transferring from Apple Music's three month free trial to a paid subscription, but he did say that the team has "been very happy with the results we've seen." As confirmed during yesterday's keynote, the service has also reached 15 million subscribers a few weeks ahead of its one year anniversary later in June.

You can read the full interview between Billboard and the Apple Music executives here.

Article Link: Eddy Cue and Jimmy Iovine Discuss State of Streaming and Growth of Apple Music

 

[jdillings]

Billboard: As an artist, have you found royalty checks to be growing?

Trent Reznor: I’m not looking at the financials as much

Ruh Roh

 

[JLee14]

I feel the same way, they both have pros and cons and they fit both sides of "ownership" views in terms of music. I'm glad Apple keeps both.

 

[Rogifan]

I'd give anything if Apple could work out a deal with Prince's estate so all his music could come to iTunes for sure (Tidal has some albums iTunes doesn't) and eventually Apple Music. Heck right now I'd just settle for all albums available on iTunes.

 

[neuropsychguy]

I purchase music and subscribe to streaming services. Streaming allows me access to a lot of music; if I like it enough, I buy it. Even after I buy it I tend to stream so the artist continues to get a little more money.

 

[Zirel]

What would killing music downloads would solve for Apple?

Giving costumers away to Pirate Bay?

Not everyone is happy living in a rented house, even if it makes sense economically.

Apple Music is living in a Hotel, is a rented house, but with extras (like the B1 shows and the playlists), people pay mostly for the extras, because for the 99%, YouTube is all they listen to.

 

[tkukoc]

Jimmy and Eddie are both dinosaurs in a market that they still think they can ultimately control. They just don't understand the end user at all. I laugh at all their nonsense they spew out. And don't get me started on Trent.. he'll say anything for a dollar.

 

[WarHeadz]

I purchase music and subscribe to streaming services. Streaming allows me access to a lot of music; if I like it enough, I buy it. Even after I buy it I tend to stream so the artist continues to get a little more money.

That....makes no sense.

 

[jayducharme]

It may be the New World Order, but I'm being dragged there kicking and screaming. The big problems with streaming IMO: without an Internet connection, I have no music; if I stop paying a monthly fee, I have no music; if I download music but then stop paying, I have no music. The music is no longer my collection, but Apple's. I'm paying for the privilege just to listen. If it cost $5 a month, I'd consider the drawbacks a reasonable trade-off. But at double that price, it's a non-starter for me.

 

[Mac Fly (film)]

I purchase music and subscribe to streaming services. Streaming allows me access to a lot of music; if I like it enough, I buy it. Even after I buy it I tend to stream so the artist continues to get a little more money.

Well done on paying twice. Such a first world achievement.

 

[iamPro]

Well done on paying twice. Such a first world achievement.

Why has it got to be either or?
Why can't you purchase music and use a streaming service at the same time?

 

[Mike MA]

That....makes no sense.

Well, maybe it's his way to donate somehow? Sounding weired though

 

[SteveJobs2.0]

These are just two of the Apple executives who need a kick in the ass out the door so that innovation and progress can restart.

 

[QCassidy352]

Well, maybe it's his way to donate somehow? Sounding weired though

I do it too, in the sense that I buy music on iTunes and still listen to it if it comes up on my Pandora station. If I had Apple Music, I wouldn't deliberately choose to stream tracks I'd already bought.

 

[OtherJesus]

I purchase music and subscribe to streaming services. Streaming allows me access to a lot of music; if I like it enough, I buy it. Even after I buy it I tend to stream so the artist continues to get a little more money.

I imagine you're going to get some people really hating on this comment.

As if they have never listened to the radio after buying a CD. Gasp!!!

 

[btrach144]

Eddy and Jonny proved yesterday that they still both don't get it. That Apple Music app overhaul was awful.

 

[2457282]

These are just two of the Apple executives who need a kick in the ass out the door so that innovation and progress can restart.

I don't know much of Jimmy, but even in the presentation yesterday Eddy looked lost. Of all the execs under Tim, he is the one that certainly looks the furthest in left field, IMO.

 

[Andres Cantu]

Ahh, they say this now to put the angry people at ease, but then in a couple of years, they will remove them from iTunes and pretend they never existed.

 

[Mums]

I'm trying to let Apple go. Stop caring. It's been dying for years now. Time to let go.

 

[M. Gustave]

The rage here at streaming music is bizarre to me. For the cost of a lunch, I get to listen to as much new music as I want for a month. I literally discover new artists daily on Apple Music, across a dozen genres.

I would say this must be a generational thing, except I think the older I get, the more I realize I don't "own" anything.

 

[ArtOfWarfare]

There's no end date, and as a matter of fact, they should all be surprised and thankful to the results that they're seeing because our music iTunes business is doing very well. Downloads weren't growing, and certainly are not going to grow again, but it's not declining anywhere near as fast as any of them predicted or thought it would. There are a lot of people who download music and are happy with it and they're not moving towards subscriptions. We talked about subscriptions bringing a lot of new customers in, people who have never bought music. And if you look at Apple's music revenue on a quarterly basis, because of subscriptions and because of sales, it's now higher; it's actually growing, which is great for the labels.

Does anyone else feel like Eddy Cue talks a lot like Trump?

Not subject matter wise, but his style seems very similar.

<Surprising statement>, and as a matter of fact, they all (never specified who) should be surprised and thankful for the results that they're seeing. <Good thing> wasn't growing, and certainly isn't going to grow again, but it's not decling anywhere near as fast as any of them (again, never specified who - Trump might choose to vaguely refer to them as "haters" or "losers") predicted or thought it would. There are a lot of people who <surprising thing> and are happy with it and they're not moving towards <new thing>. We talked about <new thing> bringing in a lot of new people, people who have never <whatever>. And if you look at <my success>, because <new thing>, it's now higher; it's actually growing, which is great for <everyone>.

 

[B.A.T]

I have a fair bit of music that isn't licensed for streaming loaded into iTunes and backed up on Google music. Streaming from there is free and they have yet to mangle up my library. I also buy vinyl. There's so many options these days for listening to music that complaining about somebody else's preferences is a waste of time.

 

[Zirel]

without an Internet connection, I have no music

Better start buying vynils for your gramophone.

Not having an Internet connection is becoming like not having electricity.

 

[MH01]

The rage here at streaming music is bizarre to me. For the cost of a lunch, I get to listen to as much new music as I want for a month. I literally discover new artists daily on Apple Music, across a dozen genres.

I would say this must be a generational thing, except I think the older I get, the more I realize I don't "own" anything.

I suspect had Apple implemented Apple Music without buying Beats, there would be a lot less rage towards it, and many would instead be very positive towards it .
[doublepost=1465940247][/doublepost]

Does anyone else feel like Eddy Cue talks a lot like Trump?

Not subject matter wise, but his style seems very similar.

<Surprising statement>, and as a matter of fact, they all (never specified who) should be surprised and thankful for the results that they're seeing. <Good thing> wasn't growing, and certainly isn't going to grow again, but it's not decling anywhere near as fast as any of them (again, never specified who - Trump might choose to vaguely refer to them as "haters" or "losers") predicted or thought it would. There are a lot of people who <surprising thing> and are happy with it and they're not moving towards <new thing>. We talked about <new thing> bringing in a lot of new people, people who have never <whatever>. And if you look at <my success>, because <new thing>, it's now higher; it's actually growing, which is great for <everyone>.

Sadly I find Trump amusing , not being American and living in Europe, but I cannot stand Cue. He should not be presenting at a keynote , as you said his style make me cringe, and ruins what he is presenting .

 

[Icaras]

That....makes no sense.

Well done on paying twice. Such a first world achievement.

Well, maybe it's his way to donate somehow? Sounding weired though

Shrug. I do it too. Buy and stream, though I have purchased less since subscribing to Apple Music.