Well its finally here.
For the past couple of years Apple has been teasing us with a music streaming service. To be honest we all knew it was coming, we just didn't know when, and what it was going to do differently.
They finally dropped the hammer on June 10, 2013 at the Worldwide Developers Conference (WWDC) where they showed off the user interface (UI), and then told us we would all have to wait until this fall before we could enjoy it. You can read their press release on the event here.
And here I am writing about it fifteen days later. Not to on top of it Larochelle.
To be honest when I watched the announcement I wasn't shocked. Like most of us, I knew it was coming. No big deal I thought. Then as the genius of Apple soaked into my brain I realized what just happened.
They found a way to truly monetize streaming. And that is huge news.
A month before Apple's announcement, the RIAA announced that streaming criteria would be added into their gold and platinum album tallies. For many this is no big deal, but for artists and those in the business of music it was huge. On one side it solidified the fact that streaming was here to stay, and as some will argue (myself included) probably become the main source of how consumers digest music. The problem with this announcement is that it puts artists in a very awkward spot.
Streaming really doesn't pay. Go ahead Google it and see if artists are making serious money off of the fraction of a cent they get every time someone listens to their intellectual property on their phone or at work. Now the RIAA has solidified it as a true delivery method, which will increase its presence in the market. From here on we are only going to see streaming increase, and with that increase less people buying music.
There are many reasons people won't buy as much music, but one of the biggest is that services such as Pandora, Spotify, and MOG don't offer consumers ways to buy the album from their interfaces. Well some do, but it's not efficient, and the Internet consumer needs efficiency or else they just won't buy.
Apple steps in and solves that problem. From their UI a consumer can purchase the track they are streaming and instantly add it to their library.
That's the competitive difference between Apple and the other streaming companies out there.
They understand that streaming can be a loss leader (at least it should be with what artists are making from this delivery system), and the moment a consumer is listening to a new track is a prime time to get them to drop $1.29 to own that tune. This is business marketing 101, and without a doubt Apple will reap some serious profits from a huge increase in sales from their iTunes store.
If you are an artist it is time to take note and adopt two simple rules. A.) stop bitching about streaming and get your music through an aggregator ASAP; B.) stop bitching about what Apple pays and get onto their service. This is now the way music is consumed, and if you want fans you need to be where they will be shopping. You can try all your other ways. You can proposition them on Facebook and Twitter, you can send out Email blasts, you can play shows and sell CD's out of your van. None of these will be as efficient as what Apple is giving you.
They will let people listen to your music a number of ways, for free. And if your song is good enough, if it grabs their attention and encourages them to buy, Apple has given them the easiest way to do that. They can just charge their credit card that is attached to their iTunes account. It's like they aren't really spending money. All this happens without you having to do a thing, and it happens across the planet 24 hours a day, seven days a week.
The bottom line. You are leaving money on the table if you don't.