Apple Music will launch on June 30. Until then, here is a snapshot of the current music streaming offerings via The Huffington Post:
There has been discussion about the percentage Apple will be paying rights holders. ReCode authoritatively reported Apple will pay over 70% of revenue. Peter Kafka goes on to succinctly summarize Apple’s offering:
Apple’s pitch to the music industry, essentially, is that its seven-tenths of a dollar will be worth much more than Spotify’s seven-tenths of a dollar in the long run, because its free service isn’t meant to compete with its paid service, and because it will sign up many more subscribers than Spotify, which says it has 20 million paying users.
Apple Music was announced today at Apple’s WWDC. Beats Music will be phased out eventually but not immediately. “One place, one complete thought around music” is the concept. iTunes radio will become a global radio station broadcasting 24/7 with three high profile DJ’s in New York, London and Los Angels called Beats 1. Apple Music will also be conventional on-demand streaming – listen to anything anytime using offline mode. And Apple Music “Connect” feature will give an artist the ability to connect directly with fans via video/photos/etc. all from Apple Music.
So, Apple Music is:
— Recommendation Engine (For You)
— On demand streaming music service (New)
— Global radio station Beats 1 (like BBC 1…)
— Connect for artists (social network)
— Your iTunes music purchases (My Music)
Apple Music will launch on June 30 for $9.99/month or family plan for $14.99/month for up to 6 people. First 3 months will be free – a decent amount of time to discover, explore and get hooked on the features.
Jimmy Iovine was on stage giving some background on Apple Music while Eddy Cue came in to give details and a demo. No sign of Ian Rogers who was reportedly directing iTunes Radio and Beats Music, now all integrated to be Apple Music.
As always, Apple shows the world their products in grand style stating “Apple Music, the next chapter in music.” The design will most likely be very clean and direct. But I’m not sure I see much innovation here…. yet. They are creating a complete platform to be used on all their devices. Since free radio will catch on faster, much of the focus will be on expanding Beats 1 global radio. Subscribers to follow.
After the June 30 launch, Beats Music subscribers will be asked to sign up for Apple Music. Their library of music and playlists will transfer with them. Details on Apple Music website.
For the last 6 months, many rumors have surfaced about how Apple plans to step into the streaming music arena. Speculation of how Beats Music will be incorporated has been rampant across the web and print media. Ashleigh Allsopp has compiled many of these rumors on Macworld UK.
Name change to Apple Music, lowering the subscription price, announcing a release in June at WWDC 2015, free trial period for 1 to 3 months, licensing deals between Apple and music labels not being in place, ability for artists to cross promote other artists, Android version release, suggestion by Apple to music labels to pull out of the free tier in other streaming services, Apple offering to pay the YouTube licensing fees to Universal Music so their songs will not be on YouTube — these are some of the many rumors that have circulated this year.
One fact to note — Warner Music Group announced that streaming music revenue surpassed revenue from selling downloads for the first time last quarter.
Stay tuned for which rumors are true once Apple announces their streaming music product.