Apple could help music industry cash in on music videos
With Apple Computer's new iTunes software adding support for digital music videos, the company could work with the music industry to deliver a profitable outlet for the clips, says one Wall Street analyst.
According to Merrill Lynch's Steve Milunovich, the music industry would likely cooperate with Apple in the sale of music videos, which are often costly to produce but offer very little direct monetary return.
As far as Netflix is concerned, Apple has its sights set on some form of video service, the analyst also noted. The online video rental service recently said Apple has designs on subscription video of some kind, as evidenced by its recent hiring and lease of space.
Concerns about how Apple will follow up the iTunes video integration seem premature, Milunovich said. He also thinks selling videos may be a precursor to a video iPod.
Meanwhile, Merrill Lynch is cautious of today's Wall Street Journal piece, which suggests Apple and Intel are in talks over Apple possibly adopting Intel processors in its Mac product line.
"What is the benefit to Apple and consumers?," Milunovich wrote in a research report released today. "One might be in notebooks, where Apple has said that heat dissipation makes it difficult to put a G5 into a laptop. Still, we?d be surprised to see a wholesale switchover to Intel processors with Mac momentum finally kicking in."
On a separate subject, Merrill Lynch said that Best Buy is experiencing little success selling Apple's new Mac mini desktop.
"Store managers told us that PC users are reluctant to make the switch to Mac and are opting for low cost PCs like eMachines," the firm said. "Some store associates said they are at a disadvantage with Macs because Best Buys don?t carry software for Apple."
Still, Mac mini sales appear solid at Apple stores, the firm said.
Merrill Lynch rates Apple a "Buy" with a price objective of $51 a share.
According to Merrill Lynch's Steve Milunovich, the music industry would likely cooperate with Apple in the sale of music videos, which are often costly to produce but offer very little direct monetary return.
As far as Netflix is concerned, Apple has its sights set on some form of video service, the analyst also noted. The online video rental service recently said Apple has designs on subscription video of some kind, as evidenced by its recent hiring and lease of space.
Concerns about how Apple will follow up the iTunes video integration seem premature, Milunovich said. He also thinks selling videos may be a precursor to a video iPod.
Meanwhile, Merrill Lynch is cautious of today's Wall Street Journal piece, which suggests Apple and Intel are in talks over Apple possibly adopting Intel processors in its Mac product line.
"What is the benefit to Apple and consumers?," Milunovich wrote in a research report released today. "One might be in notebooks, where Apple has said that heat dissipation makes it difficult to put a G5 into a laptop. Still, we?d be surprised to see a wholesale switchover to Intel processors with Mac momentum finally kicking in."
On a separate subject, Merrill Lynch said that Best Buy is experiencing little success selling Apple's new Mac mini desktop.
"Store managers told us that PC users are reluctant to make the switch to Mac and are opting for low cost PCs like eMachines," the firm said. "Some store associates said they are at a disadvantage with Macs because Best Buys don?t carry software for Apple."
Still, Mac mini sales appear solid at Apple stores, the firm said.
Merrill Lynch rates Apple a "Buy" with a price objective of $51 a share.
Comments
On a separate subject, Merrill Lynch said that Best Buy is experience little success selling Apple's new Mac mini desktop.
"Store managers told us that PC users are reluctant to make the switch to Mac and are opting for low cost PCs like eMachines," the firm said. "Some store associates said they are at a disadvantage with Macs because Best Buys don?t carry software for Apple."
When is either APple or Best Buy (or Circuit City or Sears or whoever wants to sell Macs) going to learn that you can't just slap a Mac onto a shelf and then expect people will walk buy and go "Gee...I'll buy one of those". The CompUSA "store-within-a-store" model is a testimony to this fact. You need to provide a complete (at least subset) of the Mac "ecosystem".
Duh!
In fact, I don't know why Appel doesn't try to approach this more like the CompUSA model, maybe even to the point of sub-letting space within the Best Buy stores, hiring staff, etc. having total control over the square footage. This is really just a cross-breeding o the Apple mini stores and the CompUSA "store-within-a-store" model. Getting the eye balls of the masses of people in a Best Buy on a weekend in locations where Apple does not (and likely never will) have a store would be great.
That's incentive for both sides. And charge $.99 for them as well.
Best Buy ...:P I'd expect BB to offer poor service. It's not the place that serious computer users go for good 'puter stuff.
Apple needs sales staff that will "fight" for the sale not some BB lackey that just wants the customer to laydown for easiest sale.
Originally posted by hmurchison
I think Apple should get %50 of revenue/profits from the sale of videos since they aren't a profit generating endeavour for studios.
That's incentive for both sides. And charge $.99 for them as well.
Best Buy ...:P I'd expect BB to offer poor service. It's not the place that serious computer users go for good 'puter stuff.
Apple needs sales staff that will "fight" for the sale not some BB lackey that just wants the customer to laydown for easiest sale.
Sure, and try to sell hardware without software.
Maybe if they explained what was ALREADY on the machine.
i mean, i guess it's slightly a step up from last time, when best buy employees were actively encouraging people to avoid the macs, but letting it die of attention starvation isn't exactly a ringing endorsement, either.
...today's Wall Street Journal piece... suggests Apple and Intel are in talks over Apple possibly adopting Intel processors in its Mac product line...
"What is the benefit...?," "One might be in notebooks, where Apple has said that heat dissipation makes it difficult to put a G5 into a laptop.
Never thought I'd see the day when Intel chips are lauded over PowerPC chips for their heat dissipation. My, we live in interesting times.
Originally posted by rok
look, apple needs to get into best buy and somehow call attention to this machine. i went into a best buy LOOKING for a mac mini, but it's so damn small, it just got lost on the shelf. there is absolutely nothing calling attention to it on the store shelf. i am not exaggerating here. they also have no idea how to secure it (the hard drive was renamed when i came up to one, and the color profile for the monitor was WHACKED), and they have no internet connection to it, so there goes showing off any of those features.
i mean, i guess it's slightly a step up from last time, when best buy employees were actively encouraging people to avoid the macs, but letting it die of attention starvation isn't exactly a ringing endorsement, either.
Yesterday my neighbor went to best buy to purchase a new gateway system that has this super quite case for sound recording. He asked that the device manager be opened so he could verify the hdd brand. The Best Buy dude was confrontational about it but finally caved. Then when asked if a person could open the box and add/swap cards and hdd's the BB employee returned this response. "Why. Why would you want to change the configuaration. It does not need changing." Other stupid remarks followed but you get the drift. BB is a great place to get some stuff, but computer advice/service is not one of them.
Originally posted by AppleInsider
According to Merrill Lynch's Steve Milunovich, the music industry would likely cooperate with Apple in the sale of music videos, which are often costly to produce but offer very little direct monetary return.
There might not be direct return, but there's return, otherwise they wouldn't waste all that money to produce the stupid things. I don't see movie trailers generating a lot of revenue either, but they sure do get made. Their promotional vehicles to sell the music.
However, I can't imagine ever buying a music video. You watch it a couple of times, then move on. Not worth a penny in my book.
Originally posted by Louzer
There might not be direct return, but there's return, otherwise they wouldn't waste all that money to produce the stupid things. I don't see movie trailers generating a lot of revenue either, but they sure do get made. Their promotional vehicles to sell the music.
However, I can't imagine ever buying a music video. You watch it a couple of times, then move on. Not worth a penny in my book.
There's no direct return most of the time. It's written off as advertising costs, some of which is gotten back in tax returns.
Originally posted by Louzer
I can't imagine ever buying a music video. You watch it a couple of times, then move on. Not worth a penny in my book.
I am fucking wasted. Can type but cannot stand up straight. And I really have a hankering for Windowlicker by Aphex Twin and Knives Out by you know who. Man. And I'm talking about the music videos. Fuck. I've never understood this whole "album art" thing. And Rhumgod's quote in this thread is totally on for me. Hankerin. Good thing I've got other means of gettin them vids. Ev-er-y-th-ing is sp-in-ning.
--B
EDIT: That really hit the spot, though the files were totally pixely. ITMVS would totally do it better. Hit the spot though. Am blowing what's left of my mind with LZ's Tangerine. Wait. Isn't this the What're you listening to thread?
Originally posted by AppleInsider
The online video rental service recently said Apple has designs on subscription video of some kind, as evidenced by its recent hiring and lease of space.
Ah, well at least we know why Apple freaked out on the author of NetFlix Fanatic last year.
This is a great idea to offer music videos on iTMS. Coupled with Podcasts being supported soon this is all good.
Originally posted by bergz
I am fucking wasted. Can type but cannot stand up straight. And I really have a hankering for Windowlicker by Aphex Twin and Knives Out by you know who. Man. And I'm talking about the music videos. Fuck. I've never understood this whole "album art" thing. And Rhumgod's quote in this thread is totally on for me. Hankerin. Good thing I've got other means of gettin them vids. Ev-er-y-th-ing is sp-in-ning.
--B
EDIT: That really hit the spot, though the files were totally pixely. ITMVS would totally do it better. Hit the spot though. Am blowing what's left of my mind with LZ's Tangerine. Wait. Isn't this the What're you listening to thread?
holy sh1t what were you on??? it looks like it was some good sh1t...
Playing this in the background, or even up front, can be more enjoyable than just listening.
Originally posted by bergz
I am fucking wasted. Can type but cannot stand up straight. And I really have a hankering for Windowlicker by Aphex Twin and Knives Out by you know who. Man. And I'm talking about the music videos. Fuck. I've never understood this whole "album art" thing. And Rhumgod's quote in this thread is totally on for me. Hankerin. Good thing I've got other means of gettin them vids. Ev-er-y-th-ing is sp-in-ning.
--B
EDIT: That really hit the spot, though the files were totally pixely. ITMVS would totally do it better. Hit the spot though. Am blowing what's left of my mind with LZ's Tangerine. Wait. Isn't this the What're you listening to thread?
Man... only 5 smilies wasted? One more "drink" and you could have reached the 6 smiley level! At least there's a goal to strive for.
Originally posted by Xool
Man... only 5 smilies wasted? One more "drink" and you could have reached the 6 smiley level! At least there's a goal to strive for.
If I'd hit 6 I would've
But my point was (apparently) that music vids are a desirable product. Another one was that I don't get this whole album art thing. And thirdly that I'm with Jobs in that I don't see vids on low-res 2-in screens as something very desirable. I don't even get the whole sending pixelated photos on cellphones. Oh well. What a strange evening.
--B
Originally posted by bergz
If I'd hit 6 I would've
But my point was (apparently) that music vids are a desirable product. Another one was that I don't get this whole album art thing. And thirdly that I'm with Jobs in that I don't see vids on low-res 2-in screens as something very desirable. I don't even get the whole sending pixelated photos on cellphones. Oh well. What a strange evening.
--B
Pixelated photos on cellphones are a GOOD thing when you are my 13 year old daughter and her friends.
Otherwise, I agree with your post.
Originally posted by bergz
If I'd hit 6 I would've
But my point was (apparently) that music vids are a desirable product. Another one was that I don't get this whole album art thing. And thirdly that I'm with Jobs in that I don't see vids on low-res 2-in screens as something very desirable. I don't even get the whole sending pixelated photos on cellphones. Oh well. What a strange evening.
--B
personally i agree with you on all those points...
and seriously, wtf were you on???
edit: i am starting to rip my favourite scenes from DVDs and put that into my "music video" collection to watch in iTunes every now and then...
edit2: yeah music vids will be cool as an alternative to crazy-visualisations and stuff. MTV (as in "music television the concept" is not dead....)
Originally posted by bdkennedy1
If Apple can get MTV to dust off their library, I'll be more than happy to fork over the cash.
They show videos on MTV??? I thought it was just a 24 hour Punk'd marathon on ALL THE TIME.