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More than 25% of iTunes users want Apple to go to the cloud

post #1 of 28
Thread Starter 
More than a quarter of iTunes users would like to see Apple offer a free, Internet-based cloud streaming media solution, while some said they would be willing to pay for such a feature.

The new iTunes Usage Report conducted by NPD Group asked users of iTunes, as well as iPods and iPhones, to react to various music subscription models. The study found that between 7 million and 8 million iTunes users in the U.S. would have a strong interest in a paid subscription option, for about $10 a month. That would be out of an estimated 50 million iTunes users in the U>S.

For that price, consumers would like to have access to either streaming music, or access their personal music libraries on multiple devices.

If the price were free, and granted users access to stream content they had already purchased, the number of users interested is even higher. The study found that between 13 million and 15 million said they would use that functionality.

"After the service's launch, user numbers could conceivably rise substantially, as they upgrade to newer connected devices and actually experience the benefits of cloud-based music," Russ Crupnick, vice president and senior entertainment analyst for NPD Group, said. "If the consumers who indicated strong interest in a paid subscription actually adopted one of those services at $10 per month, the market opportunity is close to $1 billion in the first year, which is roughly two-thirds the revenue garnered by the current pay-per download model.

The study was based on an online panel of respondents aged 13 and older which completed 2,862 surveys in May 2010. Each respondent indicated that they had used iTunes at least once in the last three months. NPD Group said that the study carries 95 percent confidence.

Rumors of an iTunes cloud service have persisted for some time, with indications that Apple has attempted to broker a deal with content providers to allow it to stream music to connected devices. Speculation grew after Apple, late last year, purchased streaming music service Lala for $85 million.

Recent reports, however, have indicated that such a service may not come to be any time soon, as Apple continues to negotiate with content providers, who have reportedly been unwilling to budge. Apple, thus far, has not been able to obtain the necessary licenses it would need for an "iTunes.com" service.

"We don't know yet what, if any, effect these services might have on the traditional pay-per-download music model, or whether consumers will ultimately spend more on digital music overall, if or when any of these options eventually rolls out, Crupnick said.
post #2 of 28
There have been music subscription services for years. Several are available on Apple products, none are doing very well.

Why would I pay Apple to stream my iTunes purchases? Why would I pay them more than what Pandora charges super heavy users, or what it costs me to get OTA radio stations on my iDevice? Apple would have to offer something pretty special to get $10 per month.
post #3 of 28
I have no interest in the cloud for iTunes. Nor anything for that matter. If they roll it out, it better be free.
post #4 of 28
Quote:
More 25% of iTunes users want Apple to go to the cloud

More than 25% of iTunes users want Apple to go to the cloud

Quote:
More than a quarter of iTunes users would like to see Apple offer a free, Internet-based cloud streaming media solution,

So the other 3/4 of iTunes users don't want a free, Internet-based cloud streaming media solution?
post #5 of 28
Quote:
Originally Posted by Chris_CA View Post

More than 25% of iTunes users want Apple to go to the cloud

So the other 3/4 of iTunes users don't want a free, Internet-based cloud streaming media solution?

Not surprising. The "cloud" is simply not as attractive to many people as the proponents believe it is.
post #6 of 28

deleted


Edited by kellya74u - 7/24/13 at 10:33am
post #7 of 28
Given Apple's recent 'reliability' track record... I'd Rather Not!
"Why iPhone"... Hmmm?
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"Why iPhone"... Hmmm?
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post #8 of 28
I would only be interested if I could stream all of my 30,000 songs to my iPhone. Out of those 30,00, there are perhaps a total of five that were purchased from the iTunes Store; the rest are lossless. I don't need online backup of five songs.
post #9 of 28
Quote:
a quarter of iTunes users would like to see Apple offer a free, Internet-based cloud streaming media solution

And I want a pony but that doesn't mean I will get one or that it's a good idea (given that I live in a townhouse.) In this case Henry Ford was right; people often do not know what they really want and/or what is a good idea.
post #10 of 28
I can only imagine the other 75% don't understand how convenient it is to have their entire library available anywhere, anytime.

Lala was such a great service and while i didn't initially use it to discover new music, only stream my existing library when working out of the house, it became a great option for full length previews of songs which led to many iTunes purchases. Too bad the Lala app never got approved or adopted by Apple. By all beta user accounts, it was well done.

I don't know about $10, but I'd pay $5 a month if it let me listen to full length versions of songs I haven't purchased at least once. Then give me the option to own it.

I can't imagine Apple doesn't see the opportunity here. I believe the hold up is in the licensing agreements.
post #11 of 28
Quote:
Originally Posted by anonymouse View Post

Not surprising. The "cloud" is simply not as attractive to many people as the proponents believe it is.

Or, maybe more likely, the other 75% either can't figure out what that would mean (remember, most computer users are largely computer-illiterate) or just don't care one way or the other.
post #12 of 28
I miss Lala. (10 cents to add the song to your playlist and listen to it all you want, or until bought by another company.)
post #13 of 28
Was this whole survey only about streaming music?

iTunes is a lot more (TV, movies, podcasts...)

Although I DO NOT want a subscription music service, I would love a TV/Movie subscription model that allows for rentals, and rent-to-own iTunes TV shows and Movies.

I'm all for letting Apple store that massive "library" in the cloud for me - saves on Hard Drive expense.
post #14 of 28
Quote:
Originally Posted by Chris_CA View Post

More than 25% of iTunes users want Apple to go to the cloud


So the other 3/4 of iTunes users don't want a free, Internet-based cloud streaming media solution?

sensationalistic journalism at its best. it's one thing to be pro apple, and it's entirely another to be so obviously pro apple that you're making the other pro apple people gag. i'm gagging. this is as bad as betanews and their retarded staff waving pro microsoft flags. it's so bad on that site i actively avoid it because they went from news to VIEWPOINT i.e. opinion polls where it's just some wanna be tech tard spouting off about how much he knows proving only how much he doesnt.
Groupthink is bad, mkay. Think Different is the motto.
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Groupthink is bad, mkay. Think Different is the motto.
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post #15 of 28
Quote:
Originally Posted by anonymouse View Post

Not surprising. The "cloud" is simply not as attractive to many people as the proponents believe it is.

Okay but I doubt iTunes would be "cloud only". It would be possible to keep on your computer/iPod without using the cloud.
And more to the point I was getting at, they don't want Apple to do it or they would pay for it?
More likely they simply don't care.
AI sometimes is a bit loose with paraphrasing and sometimes it does not come across with the same meaning as the original.
"According to NPDs iTunes Usage Report, more than a quarter of respondents expressed strong interest in a free cloud-based music option" (from http://musicindustryreport.org/?p=23696)
does not mean
"More than 25% of iTunes users want Apple to go to the cloud".
post #16 of 28
Quote:
Originally Posted by justbobf View Post

I miss Lala. (10 cents to add the song to your playlist and listen to it all you want, or until bought by another company.)

and Apple was the other company that bought Lala.
post #17 of 28
As others have aptly mentioned, this study shows that nearly 75% of those surveyed are JUST NOT INTERESTED.

Quote:
Originally Posted by AppleInsider View Post

"If the consumers who indicated strong interest in a paid subscription actually adopted one of those services at $10 per month, the market opportunity is close to $1 billion in the first year, which is roughly two-thirds the revenue garnered by the current pay-per download model.

So how much lost revenue would there be if 25% switched? You need to consider both sides of the equation, switchers don't bring new revenue. It's only if the difference is a (very) significant positive number that it would make financial sense. For these guys to throw around the "billion" number is just hype.

Quote:
Originally Posted by AppleInsider View Post

If the price were free, and granted users access to stream content they had already purchased, the number of users interested is even higher. The study found that between 13 million and 15 million said they would use that functionality.

Duh. Free service? The fact that the numbers are that low on a percentage basis for a free add-on service is kind of interesting.

Now there may be other strategic factors to consider on both sides, but I don't think there's any huge news here in the fact that some minority of folks are interested in a cloud solution to replace the existing system.
No Matte == No Sale :-(
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No Matte == No Sale :-(
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post #18 of 28
Quote:
Originally Posted by -cj- View Post

I can only imagine the other 75% don't understand how convenient it is to have their entire library available anywhere, anytime.

The problem comes with execution.

I have a library that's over 500GB. It's all high bit rate...I used to dj etc...

I have a 1TB hard drive in my MacBook Pro 13" and I take that with me just about everywhere. Prior to putting in the 1TB drive, I had a subset of my iTunes library that was between 50GB and 100GB with lots of playlists.

You'd be surprised at how hard it is to navigate or work with a large library with lots of playlists via 3G on the iPhone. It doesn't work well at all. And neither does streaming.

Throw in the problems most people have with firewalls and port routing and you'll see why Simplify Media was a much better demo than a product...<insert comment about how great it was here> yes, but there's a reason why it wasn't a successful product on its own. It, and the concept, certainly weren't Apple-level user experience.

Throw into the mix that storage grows rapidly while our music libraries tend to max out over time, and you'll see that each year or so iPhones gain enough capacity to hold more and more of people's entire libraries. You'd have a hard time selling the ability to stream a iTunes library to someone who's library is under 32GB...and next year 64GB...and next year or so...

So what it comes down to is this...

Does a music subscription service make sense today when you can "rent your music" on the go...over wifi, over 3G, anytime, and anywhere?

I don't think so. Not as an independent sustainable business model. In other words, even wirelessly today Napster, Rhapsody and all the others would still fail. People either want to own their music or have intelligent radio services (mostly on the free side) like Pandora.

On the other hand, for Apple, it doesn't need to be a profit center. Apple wouldn't do this at a loss, but if it broke even, Apple could see this as a way to boost iPhone/iPod sales and further strengthen its position as a content distribution powerhouse.

If Apple were to do this, I think it would be in a way that was much more Pandora-like than like Napster.
post #19 of 28
Why I don't care what a quarter of any population wants, iTunes users or otherwise: in the August 2010 issue of Vanity Fair, a poll done with CBS News shows 24 percent of Americans STILL think Barack Obama was born outside the U.S.

People are dumb.
post #20 of 28
Quote:
Originally Posted by -cj- View Post

I can only imagine the other 75% don't understand how convenient it is to have their entire library available anywhere, anytime.

Or perhaps the other 75% understand how inconvenient it would be...gor my Touch, how would I access my sings in the car or on the plane or in the subway? makes no sense from the places I listen to my music.
post #21 of 28
Quote:
Originally Posted by hoodoo View Post

Or perhaps the other 75% understand how inconvenient it would be...gor my Touch, how would I access my sings in the car or on the plane or in the subway? makes no sense from the places I listen to my music.

Yes, I use the iPod part of my iPhone in only about 3 places: 1) In the gym where I get almost no reception, 2) in the car and 3) at the beach.
post #22 of 28
Quote:
Originally Posted by anonymouse View Post

Not surprising. The "cloud" is simply not as attractive to many people as the proponents believe it is.

Yup especially if I have to pay for data use while I'm streaming crap onto the iPhone. Now if plans were unlimited... that would be another story, cause you could get away with an 8gig iPhone3GS and still have all of your music and video available to you.
--SHEFFmachine out
Da Bears!
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--SHEFFmachine out
Da Bears!
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post #23 of 28
Quote:
Originally Posted by AIaddict View Post

There have been music subscription services for years. Several are available on Apple products, none are doing very well.

Why would I pay Apple to stream my iTunes purchases? Why would I pay them more than what Pandora charges super heavy users, or what it costs me to get OTA radio stations on my iDevice? Apple would have to offer something pretty special to get $10 per month.

Music subscriptions have failed for years because iPods didn't support music subscription services until the App Store opened. An iTunes subscription service would allow for better integration with the iPod app and make Genius/ iTunes DJ infinitely more useful.

Streaming iTunes purchases is useless. No one has enough purchases where they don't have enough room on their iDevice to store it. Unfortunately the main issue is the data cap though I could see Apple making a deal with AT&T to allow it to not count against the cap.
post #24 of 28
Quote:
Originally Posted by ghostface147 View Post

I have no interest in the cloud for iTunes. Nor anything for that matter. If they roll it out, it better be free.

They're not going to roll it out because this is 100% speculation by analysts meant to churn up interest in Apple's stock. It is total nonsense.

Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

Reply
post #25 of 28

deleted


Edited by kellya74u - 7/24/13 at 10:32am
post #26 of 28
As long as "cloud" doesn't come at the expense of "non-cloud" offerings, I don't see the problem with it. The suggestion that Apple would offer streaming for free is silly, unless it's an added bonus for having paid for the song through them. But would it be enough to convince the fence-sitters to switch? I don't see that, and I don't see Apple paying more for the rights to stream, as well as the costs of the infrastructure to offering streaming.
post #27 of 28
Streaming from iPhone, iPad, iPod Touch & Apple TV of purchased Songs, Music Videos, TV Programmes and films would be brilliant idea in future. As long as the service is done well, the iPhone 5 gets 4g support and content pricing goes down a fair amount (£0.49 - £0.79 per 320K/Bits song, £3 - £5 to buy an album, £0.99 - £1.29 per HD Music Videos, £1.29 - £1.99 per HD TV episode and £5.99 - £9.99 per HD Film).
post #28 of 28
I don't think they have much choice. The iDevices are enslaved to iTunes and need to break free/cut the cord or more accurately, they need a new Master.

iPad sales have been doing well but there's only so much of a market for an extra device that works better than a NetBook. If it's truly to replace NetBooks it needs autonomy & the first step its to lose dependence on a Mac/PC based version of iTunes.

If the iTunes library were held in the cloud (alongside MobileMe data) that would be a start. iTunes capable devices already have bi-directional synching to pull remote purchases back to the iTunes 'Master' library but this need to be more free-form.

If Apple don't do this autonomous Andriod/Win7 tablets will replace iPads as surely as they are replacing NetBooks, even if it's for all the wrong reasons.

McD
Android proves (as Windows & VHS did before it) that if you want to control people, give us choices and the belief we're capable of making them. We're all 'living' the American dream.
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Android proves (as Windows & VHS did before it) that if you want to control people, give us choices and the belief we're capable of making them. We're all 'living' the American dream.
Reply
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