Beats Music

Spotify, which is widely believed to be behind the antitrust allegations that led to both EC and DOJ investigations into Apple, has now added a fresh complaint. The Verge reports Spotify is complaining that the 30% cut Apple takes from in-app Premium subscriptions in the iOS app amounts to an “Apple tax.”

Apple charges a 30 percent fee toward any sales through its App Store, and that includes subscription services. That means if Spotify wants to sell its premium subscription service — which usually costs $9.99 a month — through the App Store, it has to raise the price 30 percent higher to $12.99 to pull in the same revenue, while Apple can still offer Beats at a lower price. Spotify and many others in the music industry believe Apple’s App Store tax gives them an unfair advantage over the competition.

One unnamed music industry source said that Apple taking 30% was “**cking bullsh**” … 
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Allegations that Apple is engaging in anti-competitive practices in the run-up to the launch of its rebranded Beats streaming music service are now being investigated by the Department of Justice, according to “multiple sources” cited by The Verge.

The claim is that Apple has been attempting to use its influence to persuade music labels to pull out of deals with free, ad-supported services like Spotify and YouTube in order to reduce competition and increase demand for its own paid service. The European Commission launched an investigation into these same allegations last month …

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A new report from Music Business Worldwide claims that Apple has recently hired four producers from BBC Radio 1. This report comes two months after it was announced that Zane Lowe was leaving the British radio station to take a new position at Apple. According to today’s report, the recent Apple hires include James Bursey, Natasha Lynch and Kieran Yeates, as well as one other.

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Image via <a href="https://twitter.com/Mbrawler/status/590579777188278272/photo/1" target="_blank">Karan Pandya</a>

Apple today released an update to its mobile presentation software that enables support for an Apple Watch-based remote application. The Keynote Remote app, which will allow users to control their slides from their wrists, was first mentioned during Apple’s October 2014 event.

The Cupertino company also pushed out updates to several of its other mobile apps, fixing bugs and improving stability. The updated apps include Pages, Numbers, Remote, and Beats Music. The Mac iWork apps were also updated with bug fixes.

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A new report from Bloomberg today claims that Apple is considering $10-$15 month plans for its upcoming music streaming service while the company approaches high-profile artists to get exclusive content.

The report today follows our own report last month that Apple was planning to relaunch its Beats Music streaming service at its WWDC event in June. At the time we noted that Apple was considering a $7.99 price point, but today’s report suggests Apple could go with paid tiers ranging from $9.99/month for a single user to $14.99/month for a family account.
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I was an early adopter of digital music (you hide your surprise well). I bought my first mp3 player in 1998, some three years before the first iPod. It cost a silly amount of money and stored exactly one album at a time in its 64MB (not GB) of flash memory.

Me being me, I went through a few different generations of mp3 player before Apple completely changed the game with the iPod. Ironically, by adopting a less sophisticated technology–a hard drive in place of flash memory–Apple created a far better product. One that allowed us to carry around 80 albums at a time. I bought one the day it went on sale, having by then finished ripping all my CDs to mp3.

When the 160GB iPod came out in 2007, I again bought one immediately. That was large enough to hold my entire music collection at the time. I not only carried it everywhere with me, I also plugged it into my hifi at home and to the AUX socket of my car stereo. At which point, I started wondering why I still had a wall full of CDs … 
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Apple’s planned rebranding and relaunch of the Beats streaming music service has not had the easiest of rides. The launch, initially planned for earlier this year, was delayed by the departure of key execs and difficulties integrating Beats and Apple technologies. A planned $5/month price-point had to be abandoned in favor of an attempt at $7.99/month when music labels wouldn’t play ball, and that too now looks increasingly unlikely even though Google Play offered initial All Access Signups for a $7.99 locked in. And any plans to offer artist exclusives as an inducement now face competition from newly-relaunched Tidal.

Just when it seemed things couldn’t get any tougher, London’s Financial Times reports that the European Commission is considering launching an antitrust investigation into the service, even before it launches. The Commission has contacted several music labels to ask what deals have been done with Apple, says the FT.

The commission, which also has contacted Apple’s music-streaming rivals, is said to be concerned that the company will use its size, relationships and influence to persuade labels to abandon free, ad-supported services such as Spotify, which depend on licenses with music companies for their catalogues.

The newspaper implies that the investigation may have been triggered by a formal complaint by an existing streaming music service … 
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New iPhone 6c rumors have begun as an alleged plastic housing surfaces, but is there room for a new model? Also, Jay-Z is coming after Beats Music with some hi-fi competition. Along with that, we discuss exclusive Apple Watch details that you don’t want to miss out on. The Happy Hour podcast is available for download on iTunes and through our dedicated RSS feed…

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Click here to subscribe on iTunes or listen to the episode embedded above.

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In case you hadn’t heard, Jay-Z is this week launching (relaunching) the Tidal music service he recently acquired along with a lot of help from industry friends. The company is hoping its model is innovative and helps artists earn more, but its UI for the web app appears to be a shameless copy of Spotify, as you can see in the comparison screenshot: Tidal above, Spotify below.
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Jay Z suggested in an interview with Billboard that Jimmy Iovine had tried to lure away top-selling artists from his newly-relaunched streaming music service, Tidal, but that he wasn’t angry about it. Iovine had reputedly offered more up-front cash to Tidal artists who agreed to do a deal with Apple.

I think that’s just his competitive nature, and I don’t know if he’s looking at the bigger picture: That it’s not about me and it’s not about him; it’s about the future of the music business.

The rap and hip-hop star said that he had initially hoped to work in cooperation with Iovine, having “talked to every single service,” but had apparently been rebuffed … 
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If Apple plans to offer artist exclusives as a way to encourage sign-ups to its rebranded Beats Music streaming service, it will be facing new competition. TechCrunch reports that Tidal, the high-definition music service being relaunched later today by new owner Jay Z, is set to announce some exclusive deals with big-name artists.

Tidal is […] reportedly making a move to snag new releases by some of the biggest musicians of the moment including Kanye West, Madonna and Daft Punk […]

Tidal’s plan of attack will be to ink first-window deals with the artists, where Tidal would get first releases of tracks from big-name artists ahead of any other digital streaming services.

The artists named in the report have all been using the #tidalforall hashtag in recent tweets and Instagram posts … 
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Apple’s Spotify-like subscription music service based on its $3 billion Beats acquisition last year is fully underway, The New York Times reports in a new article heavily corroborating our own reporting on the upcoming music service from the past several months. A few interesting details in the report describe two projects being largely led by music industry veterans rather than engineers…
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Apple appears set to abandon its plans to offer the rebranded Beats streaming music service for less than the $9.99/month charged by Spotify, Rdio and Google Play Music. Billboard reports that Apple’s attempts to use its clout to negotiate better deals with record labels have been unsuccessful.

Negotiations for Apple’s upcoming subscription service are evidence labels are standing firm on pricing. Industry sources say Apple has backed down from its effort to lower monthly pricing for its subscription service to $7.99 from $9.99.

The report says that the deals offered by the labels would have left Apple losing money if it had gone ahead with its plan to offer the service for the rumored $7.99/month … 
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Starting today, AppleCare will begin providing support service for Beats Music customers as well as businesses interested in accepting Apple Pay, according to sources. Support for the streaming music service previously went through a separate system from Apple’s other products and services. AppleCare staff has also been advised on helping businesses with accepting Apple Pay as the company pushes its new mobile payment service.
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The BBC announced today that Zane Lowe, who has worked as an award-winning Radio 1 DJ for nearly twelve years, is stepping down from his position in March and moving to California to take up a role at Apple. Lowe has long been regarded as one of the UK’s top sources for music discovery, and his show helped make many artists the stars they are today.

Lowe hasn’t publicly stated what role he’ll be filling at the Cupertino tech company, but it’s not hard to conclude that he’ll be lending his curation expertise to the big upcoming relaunch of the Beats Music streaming service. Beats Music, of course, is already staffed by music industry icons Jimmy Iovine and Dr. Dre.

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Happy Hour is back and better than ever. Join us as we kick off the first episode and discuss everything you need to know about Apple’s master plan for iOS 9, a new music streaming service in the works, Apple Watch launch details, and more. The Happy Hour podcast is available for download on iTunes and through our dedicated RSS feed.

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Click here to subscribe on iTunes or listen to the first episode embedded above.

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Image: Forbes

When Apple enters a new business, you know it’s not going to do so in a half-hearted, small way. When it launches its Apple-branded Beats Music service later this year, it’s a no-brainer to predict that it’s going to be a big deal for the music industry. With Apple’s deep integration of Beats into its existing iOS/iTunes ecosystem exclusively revealed by Mark Gurman added into the mix, I wonder whether the unique selling points being notched up by Apple could be enough to leave existing big-name players like Spotify, Google Play and Rdio dead in the water?

That’s rather a grand idea, of course. As of last month, Spotify reached 15 million paid subscribers–up 50% in the last six months alone. Beats Music had only a little over 100,000 subscribers at the time Apple bought the company, and is rumored to have only 2-3 times as many now. But an Apple-ified Beats Music service has four things going for it … 
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Six months after buying the subscription music service Beats Music, Apple is actively working to launch a completely new paid streaming music service that will compete with Spotify and Rdio. Yet to be named, the new service is entirely Apple-designed, yet leverages Beats’ technologies and music content, a collaboration that has thus far led to personnel challenges and delays. Multiple sources within Apple and the music industry have provided the first in-depth details of Apple’s upcoming streaming service, which we share below.

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