EU scrutinizing record labels over potential deals with Apple streaming music service
With Apple expected to rebrand and relaunch its acquired Beats Music service this summer, the company has already come under the watchful eye of the European Union, which has begun probing the company's plans even before the product is made official.
Citing people familiar with the matter, the Financial Times reported on Thursday that "several labels and digital music companies" were contacted with questionnaires regarding dealings with Apple. Those questions were reportedly sent by the European Commission, which is the legislative arm of the E.U.
The commission is apparently interested in the agreements labels have allegedly been making with Apple in recent weeks and months, in anticipation of a new streaming service from the company. The report indicated that Apple has planned the rebranded Beats Music launch for this summer, aligning with earlier rumors.
According to the Times, questionnaires from the commission are often triggered by a formal complaint. As such, it's possible that the labels or one of Apple's competitors view the terms of the deals being struck by the iTunes company as potentially unfair.
Apple already competes against the likes of market leader Spotify and others with Beats Music, which it acquired as part of a $3 billion deal last May. But Apple is apparently in the process of rebranding and redesigning that software, which could bring it more in line with the rest of the company's iTunes services.
As part of those negotiations, Apple was said to have sought a lower monthly fee than Beats Music's current $10 price tag. But last month it was reported that Apple backed off that strategy, and its new streaming service is expected to keep the same price and match that of Spotify.
Citing people familiar with the matter, the Financial Times reported on Thursday that "several labels and digital music companies" were contacted with questionnaires regarding dealings with Apple. Those questions were reportedly sent by the European Commission, which is the legislative arm of the E.U.
The commission is apparently interested in the agreements labels have allegedly been making with Apple in recent weeks and months, in anticipation of a new streaming service from the company. The report indicated that Apple has planned the rebranded Beats Music launch for this summer, aligning with earlier rumors.
According to the Times, questionnaires from the commission are often triggered by a formal complaint. As such, it's possible that the labels or one of Apple's competitors view the terms of the deals being struck by the iTunes company as potentially unfair.
Apple already competes against the likes of market leader Spotify and others with Beats Music, which it acquired as part of a $3 billion deal last May. But Apple is apparently in the process of rebranding and redesigning that software, which could bring it more in line with the rest of the company's iTunes services.
As part of those negotiations, Apple was said to have sought a lower monthly fee than Beats Music's current $10 price tag. But last month it was reported that Apple backed off that strategy, and its new streaming service is expected to keep the same price and match that of Spotify.
Comments
I guess these streaming services are for the young'uns, who can't get enough music.
EDIT:
" the European Commission is considering launching an antitrust investigation...
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."
There wouldn't have been a privacy debate if it weren't for EU. Google, Microsoft, FB would be owning your information. I for one think it is great that someone is standing up against all types of international corporations and make sure that the consumer isn't screwed.
Thanks for the laughs! This is about protectionism and taxes, not fairness or promoting competition or 'looking out for consumers'.
Care to explain why?
All government = bad, for some people.
Yeah I know, but it would be interesting why it wouldn't be needed to make sure that they aren't trying to screw the consumers. Or have we already forgotten about iBooks?
I doubt they'll find anything though, the music industry isn't in the situation that the book publishing industry was, and there is no "big bag" to be broken, like there was with Amazon.
Doesn't hurt to be cautious though.
http://www.engadget.com/2012/12/13/apple-settles-with-eu-over-ebook-pricing-hands-amazon-a-victory/
This may be the third on-going EU-wide investigation of Apple practices initiated in just the last two years, with a few others begun or completed by individual member countries. All of the big three, Apple, Google and Microsoft, will be under the microscope there for a long time IMHO.
All government = bad, for some people.
Why is it all or nothing? How about LIMITED Government!!! The bigger Government grows, the more corrupt it becomes. I don't need Government to Micro manage my life!!! I don't need Government to know how best to spend my money!!! When all these social programs continue to fail and it's just a bottomless money pit, doubling down, tripling down on it forever. The 50 year war on Poverty and it's worse then ever. So clearly it's all working,............... NOT!!!! That's ok, just Tax(Steal) more money form the people, and when you can't realistically continue to keep doing that before the people go up in arms, Tax them Wealthy American Company's. Look, they're rolling around in money. Just what we need.
The question is where the limits are. Clearly yours are quite low.
Scrutinizing what? Apple hasn't officially announced anything about a streaming music service yet. The EU and whatever companies over there seem to be getting way ahead of themselves. Are they that terrified of Apple?
I don't have EU figures, but in the U.S. in 2014, Ad Supported streaming generated only $295 million for the industry. That compares with $773 million paid by Sound Exchange and $799 million generated on the basis of paid subscriptions. Although downloads of albums and singles are in somewhat of a decline, downloaded albums generated $1.15 billion and downloaded singles generated $1.4 billion.
(The CD, which everyone assumes is dead and is by virtue of the fact that it's only selling 15% of the units it sold at its peak, still generated $1.85 billion (at list prices). The LP, which the media has decided is doing stupendously well, generated only $315 million (at list prices)).
Thanks for the laughs! This is about protectionism and taxes, not fairness or promoting competition or 'looking out for consumers'.
Why do start a new rant on government (EU) when the actual reason why these questionnaires were sent out is: