Is Apple entering the Music Bussiness?
This idea might be way off the hook, but what do you think.
When I heard Apple was going to hold an event with U2 at the anchor, I couldn't stop wondering why they would do that. Of course as the rumors suggest there may be a U2 iPod ready to roll, but how about a Music Label?
Think about it for a second. It could be the logical step for Apple to enter into new bussiness areas like this. They have the music store rolling. They have the recognition of the average consumer (it's one of the best known brands out there). Most artists know about them, and could be signed on better deals by Apple, than they already are, since the cost of distribution is much less via iTMS.
Of course Apple would have to enter the traditional record distribution channels, as they cannot only sell via iTMS. But in the long run Apple could make a fortune here as buying music over the internet becomes much more common. And as Apple keep on expanding their music store to ever more countries, the obvious profit from such a move increases dramatically. Apple wouldn't have to settle for a mere 4 cent a song it sells (or whatever little % they make on each song sold). They could score the label fee as well.
I think Apple could make it big as a music label, but of course there would be a lot of restructuring to make such a division, but they have a major brand recognition, and they could use this in a positive way. And iTMS is already by far the best online music store out there.
Please write your thoughts...
When I heard Apple was going to hold an event with U2 at the anchor, I couldn't stop wondering why they would do that. Of course as the rumors suggest there may be a U2 iPod ready to roll, but how about a Music Label?
Think about it for a second. It could be the logical step for Apple to enter into new bussiness areas like this. They have the music store rolling. They have the recognition of the average consumer (it's one of the best known brands out there). Most artists know about them, and could be signed on better deals by Apple, than they already are, since the cost of distribution is much less via iTMS.
Of course Apple would have to enter the traditional record distribution channels, as they cannot only sell via iTMS. But in the long run Apple could make a fortune here as buying music over the internet becomes much more common. And as Apple keep on expanding their music store to ever more countries, the obvious profit from such a move increases dramatically. Apple wouldn't have to settle for a mere 4 cent a song it sells (or whatever little % they make on each song sold). They could score the label fee as well.
I think Apple could make it big as a music label, but of course there would be a lot of restructuring to make such a division, but they have a major brand recognition, and they could use this in a positive way. And iTMS is already by far the best online music store out there.
Please write your thoughts...
Comments
Makes the idea difficult for now.
Plus, I don't think Apple is interested in managing artists, publishing rights, etc. I they they want to be a retailer, not a producer. It's just way too big for them to handle, and I think it will create conflicts of interest with their products now.
Originally posted by BuonRotto
Two words: Apple Corps
Makes the idea difficult for now.
Plus, I don't think Apple is interested in managing artists, publishing rights, etc. I they they want to be a retailer, not a producer. It's just way too big for them to handle, and I think it will create conflicts of interest with their products now.
Yes. What he said.
Apple is better off selling hardware.
There are some real problems with selling (only) software. Which is what the music business basically is. Piracy. Harder to pirate hardware (Mac, iPod, etc.)
Heck, he already did. Apple Corps sued Apple again, this time over iTunes/iPod. It's going to court in London. Apple just *fired* it's law firm there, because they weren't playing hardball enough.
Complete nobodies can now cheaply produce studio quality recordings on consumer electronics. They can then make their music available worldwide at a comparatively trivial cost. The iTMS, CD-Baby, and the web in general has made this child's play.
Entire companies and professions will be nearly eliminated by this phenomenon. Just as bank tellers saw their ranks shrink, so will most professions involved in the music distribution industry. Granted, production is still facilitated by experienced professionals.
Production and distribution no longer require a behemoth of trained professionals and bureaucrats. Push marketing is about the only weapon left in the music industry arsenal. Yet... if ClearChannel cuts a deal with the iTMS... good by ?music industry?.
On the other hand, I've thought a tie-in with dotMac would make sense. Apple gains new dotMac members who can dumb their tunes in a folder, which places them for sale on the itunes music store. Would be cool, but I'm doubt it will ever happen.
I think the thing that still keeps the big labels in business is the whole marketing empire that goes along with the industry. That is the only way i can understand that people become brain-washed enough to listen to some of the crap that is "popular".
Originally posted by tonton
"Contempt"? I think you meant "content". Maybe that's why the US is in so much trouble. Too much "contempt" and not enough "content", in both the noun and the adjective form.
The US is in trouble!?!??!!
Danger Danger!
http://www.apple.com/itunes/musicmarketing/