Apple Doesn't Want to Compete -- It Wants to Own the Record Business
J Thoendell stashed this in Music
Apple would not comment on its plans (the Cupertino, Calif.-based company bought Beats Electronics for $3 billion in May 2014) for what is believed to be an all-you-can-eat music service with a modest subscription fee. The price being debated: $7.99 per month, down from Beats' now-standard -- and arguably too high -- $9.99 a month, with no "freemium" model. (The sweet spot for consumers, at which profit is maximized for the labels: $3.99 to $4.99, say experts.)
But a source familiar with the talks says the tech giant, which reported first-quarter revenue of $74.6 billion on Jan. 27, has its sights set on more than just streaming. Apple's presence in the music business, says the insider, "is to be the music business; it's not to compete with Spotify."
Whoa. I wonder what it would take for Apple to own the music business.
More of Tim Cook's vision for Apple is starting to come out.