Tag Archives for " Apple Music "

Apple Music Now In 114 Countries, But At Different Prices

Apple Music PriceIf you want to get your music to be heard in every part of the planet, then Apple Music is currently the way to go. Apple recently announced that it has expanded its reach to 114 countries, far more than any other service at the moment.

Spotify, which Music Business Worldwide now estimates at 36 million paid subscribers, is only in 60 countries at the moment, and despite the graphic disadvantage, seems to be growing faster than Apple Music. Still, you can’t argue with the footprint that Apple Music has, as it’s now available in in prized territories like China, Turkey, Taiwan and Israel.

One of the things that most artists and bands aren’t aware of though, is that Apple Music utilizes variable pricing from country to country. This means that while subscribers in the U.S. pay $9.99 per month, Israeli subscribers pay about $5.20 and Russian subscribers around $3. That means that if most of your streams come from a low paying territory, you’ll be paid a lower royalty as a result.

The variable pricing is a result of a “what the market will bear” that Apple also uses for iTunes, which proved to be successful in the past.

In the last few years Spotify has also launched in a number of other countries as well, adding Italy, Poland, Portugal, Mexico, Hong Kong, Malaysia, Singapore, Estonia, Latvia, Bolivia, Bulgaria, Turkey, Chile, Cyprus and Czech Republic to the list. The company expects to launch in Russia and Japan later this year. Spotify also utilizes variable pricing, but most of the time the price is actually higher than the U.S. For instance, Australians pay $11.25 while Swedes pay the equivalent of $15.22. Poles only pay $6.62 however.

What this shows is that streaming is expanding both territorially, and revenue-wise, which can only be good for artists, bands, labels and songwriters everywhere. The problem is that the variable pricing makes it a lot more difficult to determine just how much an average stream is worth, something that will haunt us all for some time.

Music Industry News Roundup #4

Music Industry News Roundup Here’s some interesting music business news from the last week. There’s a lot going on in the streaming world, but as usual, that’s not all.

Warner Music had it’s best quarter in a long time. Streaming agrees with this major label, and it’s up around 14% over the same time last year. Guest what? It’s all due to streaming.

“Happy Birthday” is copyright free, but what about “We Shall Overcome” and “This Land Is Your Land?” Both are considered national treasures and thought to be in the public domain, but are instead controlled by the daughter of Woody Guthrie. New lawsuits attempt to change that, but what does it mean for copyright law?

Many superstars are going it alone without a manager. Taylor Swift, Bruno Mars, Beyonce and Ariana Grande are using a close tight nit team to guide their careers instead of traditional management companies. Prince was notorious for doing the same thing, and Mick Jagger has essentially guided the Rolling Stones since early in their career. Works for some, not so much for others as Queen and Billy Joel had a rough time after trying the strategy.

Drake’s Views chart dominance is mainly due to streaming. It seems that sales aren’t what they used to be, but I’ve been making that point for a long time.

Spotify is trying to program ads based on your musical tastes. The company is now asking advertisers to submit ads that fit specific profiles to better target listeners on its free ad-supported tier. Creepy or smart?

Song pluggers now target playlists. Song “pluggers” or promoters used to target just radio in order to raise the profile of a song and make it a hit, now they target various playlists instead.

Apple has fixed a big problem with Apple Music. It has moved to fingerprinting technology to help better match your personal music collection to its online catalog. User have been frustrated with inaccurate matches, but this promises to kill the bug.

Downloads will be dead by 2020. That’s what this article predicts as it looks at the downward spiral down of downloadable music consumption. Not analysts believe it will happen this quickly, by the way.

Has streaming broken the UK singles charts? A better question might be, what dos the singles chart now measure, because it certainly isn’t sales.

That’s the News Roundup of what went on in the music industry last week. Let’s see what next week brings.

Music Industry News Roundup #3

Music Industry News Roundup Here’s some interesting music business news from the last week. As always, it’s surprising how some old topics keep on coming back to life, and the new topics that we never expected pop up.

Streaming music has surpassed YouTube music views. They said it would never happen, but streaming music is now more popular that YouTube for listening to music. This is extremely important because it’s really a paradigm shift happening right before our eyes, as music streaming becomes the big dog of music distribution. Watch the financial pie get bigger for everyone in the food chain!

Spotify and Apple Music are beating YouTube with blockbuster hits. Huge hits like Drake’s “One Dance,” Rihanna’s “Work,” Desiigner’s “Panda” and Zayn’s “Pillowtalk” don’t appear as much on YouTube as on the streaming services.

Spotify paid subscribers now at 37 million. That’s a good strong metric for success, except that so many of subscribers are on a discounted $0.99 per month or 3 months for $10 plans, so there’s no telling what will happen when those run out. Spotify figures they’ll lose between 1 and 1.5 million subs, but experts figure it will be higher. Still, the streaming service continues to grow at a faster rate that the competition.

Sony/ATV’s purchase of the other 50% of Michael Jackson’s catalog is in jeopardy. It appears that European regulators may block the acquisition because it will give Sony too much control of the publishing world. I guess that owning 60% of any industry would get anti-trust regulators to open their eyes.

Speaking of Sony, it’s being investigated in the U.S. for colluding against Rdio. The streaming service filed for bankruptcy last year (a lot of its assets were purchased by Pandora), but Rdio’s 3 founders are filing an anti-trust suit saying that Sony colluded with Warner Bros and Universal in licensing issues to force them into bankruptcy.

The music and tech industries are out of touch when it comes to copyright laws. That’s the conclusion from an article in the Wall Street Journal, but most industry experts think that the existing copyright laws need a serious updating since they apply more to a time before the high-tech age we live in today.

A classical composer has a similar viewpoint. It’s not only pop and rock songwriters that are suffering from existing copyright laws. Jennifer Higdon feels she’s not getting free market value for her compositions, which are played by orchestras worldwide.

Distrokid has created a new system for getting artists paid. This allows for multiple people to get paid, even with different percentages of ownership, instead of the current system of a single payment to one person that has to be divided after the fact.

Soundcloud is taking another step to becoming a full-fledged streaming service. It’s added a new radio-like feature similar to what other services have. Users have said it’s very “Pandora-like,” although I’m not so sure that’s a good thing.

That’s the News Roundup of what went on in the music industry last week. Let’s see what next week brings.

Buying Tidal Is A Terrible Waste Of Apple’s Money

Apple Buying Tidal?A report from the Wall Street Journal yesterday has Apple in talks to buy Jay-Z’s Tidal streaming service, and even though Tim Cook’s company has a truck load of cash on hand, this is one acquisition that seems to be a waste of money.

When Apple purchased Beats two years ago for around $3 billion, the company received not only infrastructure that was later used to launch Apple Music, but also executive talent in Jimmy Iovine and Ian Rogers (who has since departed), and branding recognition from Dr. Dre. The general consensus is that the company vastly overpaid for what it received, but at least you could look at the deal and see that it made some sense because a few pieces fit into the larger picture of what Apple was trying to do.

Not so with Tidal. It’s a company reportedly in executive disarray, so there’s no operational talent to acquire. Apple already has all the infrastructure it needs for streaming delivery, so there’s nothing to be gained there either. Tidal does have a high resolution CD quality audio tier, but Apple has been collecting hi-res masters for its Mastered For iTunes program for more than three years now, so it’s even ahead of Tidal in this area, so that’s not a fit either.

Maybe the one thing that might be interesting to Apple is that fact that Tidal has 4.2 million paid subscribers, many of them attracted to the service because of Jay-Z’s brand, and exclusives from Beyonce, Rhianna, Kenye West and Prince. Buy Tidal and you get the users, but who’s to say that those subscribers can easily be retained?

Granted, if the price was right (meaning very low – $100 million or less feels right), it may be a worthwhile gamble for Apple, if for no other reason in that it takes it off the market (although none of Apple’s deep pocket competitors seem to be interested). [Read more on Forbes…]

July 1, 2016

Apple Music’s Not Catching Spotify Anytime Soon And That’s Not Good

apple-music-1 yearAs Apple Music reaches its first anniversary, the service is now up to 15 million paid subscribers, second only to Spotify’s 30 million. That number may not be as rosy as it seems though, since it may be well below what many in the industry initially expected.

A recent report from Cowen & Co. predicted that U.S. revenue from all streaming services will double by 2021, but Spotify is still expected to hold the subscriber lead during that period and not Apple Music.

One of the reasons why the service can be considered to be underperforming is the fact that Apple iTunes has more than 800 million accounts with credit cards already on file, and all of them had the ability to take advantage of a 90 day free trial of the service when it launched. While it’s true that Apple Music has worked it’s way up to 15 million paid subscribers from an initial 6.5 million, that’s still less than 2% of the potential audience once considered easy to tap.

While there was no official prediction on the number of conversions from iTunes to Apple Music, you can bet that not many in Apple upper management were counting on a figure that low. It’s difficult enough to get buy-in from consumers who aren’t already your customers, but when you can’t even get your most loyal customers who’ve spent money with you before (and a lot, in some cases) to sign on, you’ve got a problem.

Granted, there are some territories where an additional $9.95 per month (or the currency equivalent of the territory) might be considered a hardship, but the fact of the matter is that there are over 580 million iPhone users worldwide, which is an expensive purchase no matter what part of the world you live. Even using that total, 15 million subscribers still brings the conversion rate to slightly above 2.5%. [Read more on Forbes...]

Apple Music To Get A Facelift Soon

Apple Music FaceliftWhile Apple Music has garnered 16 million paid subscribers rather quickly since its launch last year, the service hasn’t been without criticism, especially about its ease of use. Despite being a huge company, Apple does listen to its customers though, and as a result, it’s been reported that Apple Music is about to receive a needed facelift.

The reboot is said to be set for the company’s Worldwide Developers Conference in June, and is said to include an easier user interface and more radio stations.

In a nod to Spotify’s recent success, Apple is also rolling out a “student plan” paid tier at $4.99 per month instead of the normal $9.99. Many think that the recent growth spurt of Spotify is mainly due to the introduction of a student plan, and Apple aims to find out if it can indeed emulate the same results with something similar.

That said, many analysts believe that Apple’s 16 million subscribers, while nothing to sneeze at, it’s still far lower than it should be, considering that the company has around 850 million credit cards on file thanks to iTunes and the App Store.

Many insiders feel that this can be traced back to the interesting chain of command inside of Apple Music, where a number of high ranking executives must sign off on nearly everything, making development much slower than it should be. Apple content head Robert Kondrk, Nine Inch Nails frontman Trent Reznor, design chief Jony Ive, along with former Beats founder Jimmy Iovine and Eddy Cue, the senior vice president in charge of Internet services, all are said to have their hands in the final decision making.

This has lead to somewhat of a brain drain within Apple, as many former Beats employees have left in frustration, although it’s still too early in the game to know if any of that is really a difference maker.

One thing is for sure, an updated, face-lifted Apple Music along with a new ad campaign is still a force to be reckoned with. Watch out Spotify.

Apple Music Up To 13 Million Subscribers

Apple Music SubscribersIt looks like all the naysayers were wrong. Apple reported on its recent earnings call that its Apple Music streaming service was now up to 13 million paid subscribers and still growing.

Much of that growth has come recently in fact, as it was reported that 2 million subscribers signed up since February alone.

The present growth looks to be at around 1 million a month, which means that the tech giant should be battling Spotify for the top space in the streaming industry by the end of year.

Spotify claims to have 20 million current subscribers, but many are on a “student discount” tier at half the $9.99 monthly price.

One advantage that Apple Music has over Spotify is that it’s available in 58 more countries than Spotify, including Russia, China and Japan. All in all, the service is available in a total of 113 countries, leaving Spotify to play catch-up.

One reason for AM’s growth spurt has been albums from Drake, Coldplay, The 1975 and Gwen Stefani, where were releases to AM for a period before Spotify. Having an advert with Taylor Swift was also a big help.

Despite the recent hype around Tidal, it’s Apple Music that seems to be making the most headway.