Why Apple Needs To Be 'Seriously' In The Music Streaming Business
The Wall Street Journal reported on Monday that Apple Inc. (NASDAQ: AAPL) is planning to follow Spotify’s footsteps and launch its own music streaming service.
Shelly Palmer of Landmark Ventures was on CNBC Tuesday to weigh in on this.
Apple Needs To Seriously Be In The Music Business
“They are going to amass a bunch of data about you and we are living in a world of accelerating information that will always accelerate,” Palmer said. “And Apple, once that, you know data is everything now, so they are going to have a better profile about the things you like and the things they can do. Realistically, Apple had no choice.”
“I think they need to be seriously in the music business. Is this going to be a differentiated or an undifferentiated product? I don’t know. But I’ll tell you what it is going to do -- It’s going to allow them to take people who do not understand how to use Spotify and Pandora and make it instantly available as an Apple ecosystem feature."
He continued, “And you know what, there are lot of people out there not sitting at this table, who think Spotify is hard to use. I don’t know how that is possible, personally it’s not my world view, but I think it’s true […] They could actually surprise you in market share just by picking up people who literally no one else has.”
Who Else Will Record Labels Sell To?
Palmer was asked if there is any chance that Apple won’t be able to sign deals with big record labels for its streaming service. He replied, “I will say this as nicely as I can: If the recorded music companies do not sell to Apple, who else will they sell to?”
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