JIM CARROLLon music
Apple dive into music streaming with the big labels' blessing
The big boys are here. Next week, Steve Jobs will walk onstage at Apple’s Worldwide Developers Conference and introduce the world to iCloud, Apple’s cloud-based service. It is not known at this stage if Jobs will sport a black polo neck for the occasion, but chances are that he will remain true to the usual sartorial style.
Another unknown is what exactly iCloud will be. We can expect it to be a music streaming service of some sort – a Spotify with Apple’s bells and whistles, if you will.
Unlike recent cloud services launched by Google and Amazon, Apple already have the bulk of the music labels onside. According to reports, Apple have completed deals with all of the big four music companies, though it’s unknown if they’ve also cut deals with the independent sector. Reports also claim that 70 per cent of revenues from the service will pass to the music companies.
It must have made for fascinating negotiations. The music companies know they need Apple, but they also must have remembered how the iTunes deal was more of a winner for Apple than for them.
Apple also realised that it would be easier to have the labels onside for a new streaming service rather than trying to circumvent it, as Google and Amazon have done.
Apple’s entry will also bring a greater profile for the sector. While there has been a lot of talk about music-in-the-cloud in the past 18 months, there’s been little to get really excited about.
But when there is a company such as Apple – which has already changed the music game once with iTunes – getting stuck in, you know the story is going to get interesting.
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