Company / division: Apple Music

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    Apple Partners with Musical.ly, Supplying Songs and Promoting Apple Music (Apr 28, 2017)

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    Apple Planning Up To Ten Pieces of Original Video Content This Year (Apr 27, 2017)

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    Apple Delays Carpool Karaoke Launch (Apr 25, 2017)

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    ★ Analysis Suggests Apple’s Chinese Market Share Decline is Due to Poor Services (Apr 22, 2017)

    Backchannel has a piece out this week which argues that the iPhone’s declining market share in China is due to the poor competitiveness of its services, notably Apple Music and Apple Pay. The piece is well worth reading, but it offers few real answers. It states that Apple fails to compete effectively with its music and payment services in China, but then also says that the music and payments markets in China have been sewn up by strong local competitors, with music rights in particular subject to exclusives from Chinese services. As such, it’s really not clear what Apple could have done differently in these categories. At the end of the day, Apple’s lack of competitiveness in services in China is a symptom of a much broader issue, which is that Apple doesn’t bend much to local custom when it comes to pricing or service structure (see also India). It does localize content stores, and indeed is one of the strongest players in that respect globally, but China is such a massive market, has so many homegrown competitors, and is run by a government which is not afraid to disadvantage foreign interlopers, that it’s hard to see how Apple could compete effectively there on services. As such, I think it’s smart to compete more on its devices, its growing retail presence, and its non-content software and services. But that does mean that the ecosystem Apple has built elsewhere is missing some of the appeal it has elsewhere.

    But all that is to ignore the central premise of the argument being made here, that it’s this services weakness that’s at the root of the recent decline in iPhone market share in China. I think that’s debatable at best, and it’s worth remembering that that decline isn’t about ownership but sales, and Apple went through a massive cycle earlier off the back of the iPhone 6 in China, and then came down to earth over the ensuing year, so that change in market share is reflective of cyclical rather than permanent trends, with some signs of recovery recently with the iPhone 7. So overall this piece feels like it makes some interesting points, some of them legitimate with regard to Apple’s services competitiveness in China, but overdoes the narrative about its impact.

    via Backchannel

    Apple Uses Music Muscle to Promote Young Artists for a Month at a Time (Apr 21, 2017)

    Apple is starting a new program through which it will spend a month at a time promoting young relatively unknown artists through its various Apple Music assets, including the streaming service, Beats 1 Radio, and in other venues. When Apple first launched Apple Music, the Connect feature felt like it could be a great way for artists of all sizes to connect organically with their fans through the platform, but it really hasn’t taken off in that way. Meanwhile, SoundCloud and YouTube continue to do better in helping young artists get their start before they get signed to labels. This effort is aimed at a somewhat later stage in the game, but builds on Beats 1 DJ Zane Lowe’s reputation for giving artists their big break, but if it’s a monthlong effort it’s hard to see how it will be scalable. However, it’s all part of Apple’s pitch that its service is the best for artists, whether that’s through exclusives, discovery and promotion, or simply getting paid for their work (since it’s one of the few services that doesn’t have a free tier).

    via Bloomberg

    Jay-Z quietly removes catalog from Apple Music and Spotify as Tidal continues fight for exclusives – 9to5Mac (Apr 7, 2017)

    Jay-Z, one of the owners of the Tidal music service, has apparently pulled all his solo music from both Apple Music and Spotify, though without any kind of official explanation or much fanfare. In theory, it’s likely that he’s trying to reinforce one of the original value propositions of Tidal, which was that its artist-owners would provide exclusives for their music, though in practice most of the owners have continued to license their music to other streaming services, which have far bigger subscriber bases. Tidal has struggled financially, and recently got something of a lifeline from Sprint, but it may have decided that it needs more exclusives to drive interest and subscriber numbers. I’m not convinced it’s going to do all that well on that basis given that the vast majority of the global music catalogue is still available on other services, but this is yet another sign that exclusives – whether temporary or long-term – are one of the few sources of differentiation to streaming music services, whether or not that’s good for their subscribers.

    via 9to5Mac

    Chance the Rapper Says His Apple Music Deal Was Worth $500,000 – The New York Times (Mar 17, 2017)

    From a musical perspective, this is a little down in the weeds, but it’s relevant to how Apple and other streaming services are using exclusives to promote and differentiate their services, so it’s worth understanding at least some of those details. Chance the Rapper is a popular musician who famously has eschewed both a deal with a label and, for the most part, charging for his music, making much of it available through free streaming services like SoundCloud. However, he did have a brief exclusive with Apple Music a while back, which has led to some criticisms that he’s not truly an independent artist (neither the musician nor the articles covering this story today seem to be specific about that, but here’s a recent example). In his defense, Chance detailed his relationship with Apple today in a series of tweets in which he said that Apple had indeed paid him half a million dollars, which he says he needed at the time, for a two week exclusive on Apple Music before he released his album on SoundCloud. That’s a much smaller amount than Apple was reported to have paid fellow musician Drake, but highlights that Apple has been spending a decent amount on exclusives, though it’s possible that we’ll see less of this and more emphasis on its original content going forward. Meanwhile, it appears Drake’s next project (technically a mixtape and not an album) will be the first in quite a while not to be an Apple Music exclusive.

    via New York Times

    Spotify expands its push into original content with new podcasts – TechCrunch (Feb 23, 2017)

    It’s becoming increasingly clear that original content is going to be an important part of differentiation in the streaming music space going forward, between Spotify’s earlier video content and now several new podcasts, and Apple’s focus on Beats 1 radio and its TV shows. The difference is, of course, that Spotify has a free tier, where this original content will also be available, while Apple will restrict its TV shows to paying subscribers. For Apple, the cost isn’t that big a deal – it has a much bigger company to fund such investment – but for Spotify such additional costs will push it yet further away from profitability without any big direct revenue benefit.

    via TechCrunch

    Amazon, Apple, Google and Other Tech Companies on the Billboard Power 100 (Feb 9, 2017)

    Billboard does an annual Power 100 ranking of the most important/influential execs in the music industry. Coming at this from a tech angle, there are several notable companies on the list: Spotify’s Daniel Ek takes the top spot, several Apple folks are at #4, Amazon at #12, iHeartMedia at #19, YouTube at #30, Pandora at #34, Facebook is at #54, and various others are scattered through the second 50. Amazon’s ranking is surprisingly high, but is entirely due to Billboard’s perception of Echo and Alexa’s role in transforming music, as illustrated by Billboard’s interview with Jeff Bezos and Amazon Music head Steve Boom. I think the take here is a little overblown, but there’s no doubt Echo and Alexa are changing the experience of music for the small minority of people who use them. YouTube’s relatively low ranking is surprising given how important a channel the site is for the music industry, but of course its relationship with the labels and artists is complicated. This kind of ranking exercise is always somewhat arbitrary, but it’s interesting to get a music industry take on the tech companies and their relative importance here.

    via Billboard Bezos Interview (see also Power 100 rankings)

    Music streaming hailed as industry’s saviour as labels enjoy profit surge | Technology | The Guardian (Dec 29, 2016)

    The headline is right on here – streaming has been a boon for the music industry, arguably the second time the tech industry (and Apple in particular) has come to its rescue. But it doesn’t go far enough – it’s paid streaming that’s saving the industry, while the best that can be said for ad-supported streaming is that it provides a useful funnel for the services that really drive revenue. That tension between paid and free streaming and their respective economics is a key one to watch in the music industry over the next couple of years.

    via Music streaming hailed as industry’s saviour as labels enjoy profit surge | Technology | The Guardian

    Apple Music: Platform? Promoter? Both. – The New York Times (Dec 22, 2016)

    Competition in the streaming music market is tough – everyone is offering roughly the same catalogs for roughly the same monthly price. So competition happens at the margins – in recommendations, user interfaces, and exclusive content, which is the subject of this interview with Apple Music execs.

    via Apple Music: Platform? Promoter? Both. – The New York Times