music service

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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Apple won’t take the wraps off of its upcoming Beats-based music streaming service at its March 9 “Spring Forward” event, according to music industry sources briefed on the launch timeline. Instead, Apple currently plans to introduce the service, at least in beta form, at its Worldwide Developers Conference (WWDC) in early June. The WWDC keynote likely takes place on Monday, June 8th, and that’s the event where the debut will occur. The new iTunes music streaming service is based on technology acquired from Beats Music, including curated playlists, cloud-based libraries, and offerings customized to the musical tastes of individual users. The service will be priced as high as $7.99 per month, which is less expensive than current $9.99 pricing for Beats Music, Spotify, and Rdio…

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Luke Wood, Jimmy Iovine, & Dr. Dre

Just as Apple is expected to close on a deal with Beats Electronics as soon as next week, a new report from The Wrap shares that David Hyman, the founder of music service MOG which Beats purchased, is suing the headphones and streaming music company for at least $20 million plus interest.

The suit claims that, under an incentive plan adopted during Hyman’s tenure, he would be entitled to compensation including 2.5 percent of the company’s “currently outstanding equity interests,” with 1 percent due on the first anniversary of Hyman’s date of employment, and subsequent installments due in subsequent months. The suit also claims that he was promised a grant of 25 percent of the company’s outstanding equity interests following adoption of the incentive plan if the company achieved a fair market value of $500 million or more.

Hyman served as founder and CEO of the MOG music service for seven years until Beats Electronics purchased it for $14 million in May 2012. Hyman stayed on to head the music service that is now Beats Music where he served as CEO for just seven months.

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