Next battle: streaming music. It will not be the year without Apple and Google premiere their own musical listening services, much like Spotify. According to sources who collects Cnet, Apple is in talks with the labels Warner and Universal to reach an agreement with the copyright and so launch its service before the summer.
The service will not be exactly like Spotify, which triumphs in Europe, but rather that of Pandora, which dominates in the United States, and that plays music but not at the request of the listener, but is guided more by their trends and tastes. Another particular feature is that facilitate the direct purchase of what they are listening to their iTunes store connection.
Although there is no comment from the company, following its policy nominative be called iRadio service, and would be a logical extension, and, at their music store. The popular success of Spotify and Pandora, and others, are also making a second term on iTunes. A service such as iRadio connected to the store would cover all commercial offer without departing from Apple. In principle, the most natural date for the official announcement of the Apple service would be in June, coinciding with the annual meeting of its developers.
The urgency of the service is also driven by the knowledge that something similar to Google prepares before year end. In your case the service is called YouTube Music, and would have the uniqueness of the music.
Spotify and Pandora would be threatened their services, despite their millions of subscribers, lose money
Apple pioneered the iTunes store and its major agreements with major and independent record labels, but those agreements are not valid in the case of service of streaming, where the amateur listen, but not download the music on their handsets. In these cases, it is usual for a monthly subscription, sometimes free in exchange for publicity, sometimes payment. For Spotify Premium monthly fee is $ 10, which entitles you to listen to music for an unlimited time on different devices.
Spotify has over 20 million subscribers, who pay for the service a quarter, but this is not of concern for their financial health, but the low advertising revenue. The global expansion is costing Spotify also face.Its revenue increased 151% to $ 244 million, but losses increased from $ 37 million at 60 in 2011, the last year of that record.
For Pandora, subscribers total more than 125 million in the U.S. (also works in Australia and New Zealand), which is publicly traded, with revenues of $ 274 million, primarily from advertising. As Spotify also gives losses. Last year, more than 16 million.
The arrival of iRadio Apple and YouTube Music would endanger both platforms, especially that of Spotify, which does not have a specific market, like the U.S. in the case of Pandora. The two giants would open its service streaming in a dozen countries at a time and would use theirclouds for the amateur could create your own lists or store your disco music.