there is so much about this story that tells us we need to wait (probably for months) before we can finally hear enough info (including from apple's perspective) in order for anybody to make a judgement.
the actions outlined in the rumor/article of course sound to be "predatory" (from a legal standpoint). but the nature of this leak's background is likely to have come from elements that support apple's competitors and not apple.
its of course very complicated and has parallels to iBooks.
in iBooks, Jobs was sure that the model in use by book publishers and amazon resulted in a fragmented industry that was not in the end good for the health of book publishing, and therefore in the end, also not good for consumers. i agree with that strategy (raising book prices to consumers) to elevate the book publishing industry as a whole. but in fact it is an illegal strategy in the way that apple went about it. the result is known: amazon won, the industry is hopelessly weak, there are less and less incentives to publish or take risk on marginal authors. and, the epub formats continue to not have real compatibility.
consumers have not benefitted from the US government enforced watchdog settlement.
so now this time with streaming: apple is again saying that for itself, and in general, the industry and concept itself to survive, that a monthly fee of USD 8 (or whatever it is) is not enough. and therefore apple would like to charge its customers USD 10 (for example).
this really makes me recall Jobs famous quote on camera to the question "why will publishers go with apple when it effectively raises prices to the customer" when he simply answered: "they just will" (or something very similar).
so now apple is trying the same approach with music streaming.
i happen to agree again with apple: with more and more adjustments to streaming flexibility, the streaming+++ model will be able to successfully break the "i want to own my music" mentality the more and more flexible the plans become and the more and more easier it becomes to play your music on any device you own at any time on demand.
i agree with apple that this kind of service is worth a premium. in the end, a slightly higher per month fee is acceptable if it has more added flexibility and usefulness to the consumer.
the question is: when apple is meeting with and negotiating with the music companies, in what way are they attempting to merely state their negotiating position and strategy, versus, trying to use their position within the music community (vis a vis iTunes store and download platform) to coerce music companies into buying into their vision.
this is where Mr. Eddie Cue again and again never fails to disappoint. He has not been successful for apple in any media related strategy during the past 5 years.
iTunes radio is a joke and limited. apple TV is a joke and limited. streaming has taken too long to get into action.
as a Beats-centric strategy evolves (as it is rumored), will the price that apple paid for it have been able to help apple evolve its music strategy into a long term viable new platform.
with Eddie in charge, I doubt it.
Lovely, seemingly blind support of a massive corporation doing anything it wants. Earlier in the process of bringing this product to market, Apple was trying to push a different strategy which would have them roll out at
lower prices than established competitors:
https://forums.macrumors.com/threads/1805176/. Were they entirely right in their thinking about that too? Would you completely agree with that one had they been able to pull that off? How would that want by Apple "improve the health of the music industry" and or help that industry "survive"?
That was what Apple wanted to do about 8 months ago. They couldn't get the industry to play ball. So then they shift to this new concept as their own backup. And this backup is ideal? A backup option is almost never an ideal (else, why is it the backup?).
Apple was very wrong in the iBooks debacle. The book industry is fine. It was fine before Apple tried to inject itself that way and it is fine after the justice department smacked Apple and the publishers who played ball with Apple. Books still sell. Profits are still made. If an Amazon ever flexes some kind of (perceived) monopolistic muscle to exploit book buyers by jacking up prices, other book sellers can be quickly born as new discount sources of books easily. Apple lost it's valiant effort to save the book industry. But the book industry is still here. And Amazon's lower prices doesn't seem to be hurting them or us consumers. By the way Amazon did not win that case. It was not Amazon vs. Apple. It was the GOV vs. Apple. Amazon was mostly a bystander (only a player because of how Apple's efforts forced them to change in such a way that THEY would then be charging higher prices to their customers).
The problem here and with iBooks is Apple is trying to profitably inject itself into well-established business models prioritizing it's own profits. As such, the existing suppliers need price hikes so that Apple can get theirs and thus Apple- and Apple fans- are already trying to spin price hikes in favorable ways to rationalize paying more for something already well-established at lower prices. The bigger lesson in this is probably "leave well enough alone" (Apple) and focus on
new opportunities instead of trying to turn free & cheap into "premium" even if some Apple fans will help rationalize anything Apple wants to do.
Within this thread, there's implications that this is about paying artists more. No it's not, it's about paying Apple. Had Apple got the best pricing discount it was seeking months ago, one of the casualties was the peanuts Artists make from this now. Then you get posts like the above where the implications about improving the health of industries or even saving an industry... by Apple injecting itself in on top, raising prices to consumers and taking a cut for themselves. If anyone actually believes that, why doesn't Apple waive it's cut or pass it's cut along to that poor, ailing industry and/or those starving artists as part of saving it/them? It's not like Apple desperately needs it's cut out of this new venture to survive. Does a premium price need to be charged if Apple waives it's cut? Or is the premium pricing about being sure Apple gets paid (profitably)?
Personally, I keep thinking why is Apple even trying to get into this space or why doesn't Apple buy Spotify & Pandora if it wants an easier in? Everything I read about it says that there isn't that much money here (at least on an Apple "Billions in quarterly profits" plane). We're snowing ourselves into believing streaming is "the future" but that's mostly built atop a concept that renting is better than buying, which never lasts once consumers tire of the endless wallet drain of renting once they have the capability of buying. Especially in this case where one can accumulate a huge amount of desired music for dirt cheap (used CDs, 99 cent singles, all kinds of free music promotions running seemingly all the time, discount iTunes gift cards, etc), do the masses really want to rent access to their music collection? Or is this something spun and spun to try to make us believe it's "the future" because renting is certainly much more profitable than selling something once and having it last forever (at non-degrading quality)?