Apple Music's Jimmy Iovine defends paid-only model, claims free tier would have 400M users...
In an interview published this week, Beats co-founder and Apple Music executive Jimmy Iovine raised vocal opposition to the concept of "free" music, simultaneously arguing that if Apple had a free tier like Spotify, it would "have 400 million people on it."
"The fact is that 'free' in music streaming is so technically good and ubiquitous that it's stunting the growth of paid streaming," Iovine said to Music Business Worldwide. "It blew my mind that the day after I walked out on stage [to announce Apple Music at WWDC in 2015], YouTube mobile was licensed."
Iovine complained that many musicians believe there's little money in recorded music, and in some cases are using it solely for promotion, willing to make sacrifices simply to get exposure and sell concert tickets and merchandise.
"But we believe artists should get paid. That's why I went to Apple," he remarked. "Artists are getting screwed. Period. I don't see how anybody stands behind it. It's all of our responsibility to change it."
The executive claimed that he's put his money where his mouth is, keeping free tiers out of both Apple Music and its predecessor, Beats Music.
"I'm not just talking it; I'm walking it. That's why I aligned with Eddy [Cue] and Tim [Cook] and Steve [Jobs]. They thought the same way. I think what's going on is wrong. I just do. I don't care if saying that makes me seem behind-the-times, up-with-the-times, young, old... I don't care! Because, whatever it is, it's wrong."
Iovine further argued that "people who pay for subscriptions should be advantaged." This is part of the reason behind Apple's recent push into original video content -- the company is readying shows like "Carpool Karaoke" and "Planet of the Apps," as well as a slate of documentaries and other exclusives.
Spotify remains well ahead of Apple Music in subscribers, with over 50 million paid customers versus Apple's 20 million. There are likely many more people on Spotify's ad-based free tier, but the company hasn't publicly updated those statistics since June 2016.
"The fact is that 'free' in music streaming is so technically good and ubiquitous that it's stunting the growth of paid streaming," Iovine said to Music Business Worldwide. "It blew my mind that the day after I walked out on stage [to announce Apple Music at WWDC in 2015], YouTube mobile was licensed."
Iovine complained that many musicians believe there's little money in recorded music, and in some cases are using it solely for promotion, willing to make sacrifices simply to get exposure and sell concert tickets and merchandise.
"But we believe artists should get paid. That's why I went to Apple," he remarked. "Artists are getting screwed. Period. I don't see how anybody stands behind it. It's all of our responsibility to change it."
The executive claimed that he's put his money where his mouth is, keeping free tiers out of both Apple Music and its predecessor, Beats Music.
"I'm not just talking it; I'm walking it. That's why I aligned with Eddy [Cue] and Tim [Cook] and Steve [Jobs]. They thought the same way. I think what's going on is wrong. I just do. I don't care if saying that makes me seem behind-the-times, up-with-the-times, young, old... I don't care! Because, whatever it is, it's wrong."
Iovine further argued that "people who pay for subscriptions should be advantaged." This is part of the reason behind Apple's recent push into original video content -- the company is readying shows like "Carpool Karaoke" and "Planet of the Apps," as well as a slate of documentaries and other exclusives.
Spotify remains well ahead of Apple Music in subscribers, with over 50 million paid customers versus Apple's 20 million. There are likely many more people on Spotify's ad-based free tier, but the company hasn't publicly updated those statistics since June 2016.
Comments
who owns the Master.
Freetards are being ridiculous and so is the industry (Apple was correct in that a monthly subscription for Music should be roughly $5 per month based on the annual avg of music sales in dollars per user)
I understand why Netflix is seeking more money than $10 a month ...producing and distributing long form video content is expensive ..far more expensive than music.
I don't see anything wrong with AppleMusic not having a free tier if that's how they want to do it. I'm not sure why any company wants to support freeloaders especially if their profitability is low. All that free streaming costs a company money if they haven't balanced it with enough paid ads. I'm an occasional freeloader with both Spotify and Pandora. I don't mind listening to ads as I only use either service a few hours every month during the winter months. If either of those companies stopped the free tier, I wouldn't be crying foul. Companies should charge enough for services to at least survive. That's far more important than a free tier, in my opinion. I consider music streaming services fees very modest, especially if you're using it a lot.
There's also those free internet stations that sometimes plays nonstop music. Maybe they're hosted by individuals and they give you a lot of music and not much in the way of commercial ads. Occasionally I'll find a decent free internet station and listen to that for a couple of hours. Even if the quality isn't all that good, I don't mind considering I grew up listening to non-stereo AM radio back in the 50s, 60s, and 70s.
Part of that is music streaming, and that works for me rather than Apple Music, yet another monthly fee.
But, here's the distinction. Whether this will be enough to change anything I don't know but here goes:
with the radio, you have no say over whats played and when it's played. To not experience that annoyance we would go purchase a tape or cassette so we could control our listening experience. Another reason for buying the album over the radio playing was no commercials. A constant stream of never ending commercials.
Ok that said...
so with streaming it can be FREE but if you want to have the option to play things when you want to play things then that should be a fee, because at that point it's the same as if you went out and bought the CD itself so you could program what you want to listening to.
And creating playlists? Yeah we called that "cassettes". You bought the product then you copied just those songs YOU wanted to hear AND because it was a copy of things you bought you could mix and match artists.on your custom made cassette.
Recap:
FREE: the ability to not choose what you hear or when it's played if ever (a.k.a.radio) that should be free because commercials are paying your fee
PAID:
You buy the songs then you can make playoffs to Customize your listening experience.
We are a record company. I do not have a problem with this designation of whats qualifies as "free" what qualifies "paid" using this description, but using the "radio (no say on the music)" vs "purchase" (customize your experience) that would be a good starting point.
Anyone not wanting to pay at that point is just a person who thinks they are entitled.
Thanks again to sbuttler for giving me a new way to see this
Its free for intents and purposes. Im not a music aficionado as a lot people are and they gladly pay for streaming... I presume. For me, Im ok to not pay Apple or another service when I can use another free radio app, turn on a radio/change a channel etc or just 'purchase' the song out right(yes Im old school). Plus-- Im just sick of monthly fees, have too many already.
Didn't radio use to be a 'promotion' vehicle for 'poor artist'? Didn't they pay to play?
IMO there are millions that will not sigh up for paid service but would listen to an ad supported Apple service(like before). Apple not offering the 'ad supported radio' service in order to pay artists seems sketchy. Is he admitting Apple is manipulating a 'market' (ie their customers) in the attempt to 'make fair' a perceived unfairness?
Outside of this, a fully free subscription option is ruining the music industry. It's one more reason why music has gone to shit—only a select number of answer make money these days. It's tough out there without time for artists to grow spiritually and take a year or two out to write a classic album.