Apple's Future Plans Don't Include A Streaming Music Service
February 25, 2011
Apple is expected to announce an expanded MobileMe service in the coming weeks, and it might include some sort of cloud music service. Because of this, the company has reportedly informed music labels that it remains committed to music downloading, and does not plan on offering a streaming service like other companies.
According to The Financial Times (subscription only), Apple’s cloud strategy for music would be as a form of “insurance,” with direct music downloads in iTunes still the preferred method of purchase. As such, it won't be entering the growing streaming music business like that offered by Pandora, Rdio, and MOG.
The same report indicates Apple has no desire to enter the rental music business either, such as what is provided by Microsoft and Rhapsody.
The worldwide music business has been slowing over the last decade. First, the CD music business declined drastically; now even the growth of digital downloads has slowed. Each step of the way, music labels have grown increasingly worried about their future.
For quite some time, music producers have been concerned about Apple’s long-term music strategy. This worry grew stronger in 2009 when the company purchased Lala; they sold both music downloads and the right to play online songs. They also allowed customers to upload their own music for remote playback from several devices.
Apple shut the site down in 2010, which suggested the company would use what it acquired from Lala and release a similar service.
Now, that doesn’t appear to be the case.
Apple is expected to publicly announce its future plans for MobileMe sooner rather than later.