Cloud-Based iTunes to Offer Storage Not a Subscription Service

CloudComputing-150x150.jpgThe Financial Times is reporting that Apple confirmed to music labels that their cloud-based music service will be for storage and not subscription services. Users will be able to back up their collections and move them to other Apple devices.
An excerpt:

Apple, which rocked digital music services such as Pandora, Rdio and MOG last week by announcing plans to keep 30 per cent of all revenues from subscriptions taken out through its App Store, has clarified its plans for using remote storage, known as the cloud, according to several music industry executives.

More than a year after buying Lala, a cloud-based digital music service, Apple is now looking to use the cloud mainly to allow users of its iTunes store to back up their collections and access them from any Apple device.

One person with knowledge of Apple’s plans said the company did not want to undermine the market that it dominates for paid downloads, likening its plans for the cloud to “insurance”.

This sounds more like how I’d envisioned Apple doing a cloud-based iTunes. You supply the content, they supply the syncing magic. Apple has vehemently frowned upon subscription-based music services since the introduction of the iTunes store, and I don’t think anything in their culture has changed since then. So, if I had to guess, expect storage and cloud-based syncing.



  • http://Www.background-music-library.com Ambient_Guy

    Apple must also be aware that the current consumer attitude is for ‘owning’ the music they purchase. Music you own can be transferred to a range of devices & mediums consumers choose to use to listen to their own cherished music collections. Music collections, for consumers are a reference for their own personality & very much present the uniqueness of their tastes.

    Music sites such as Magnatune have experienced only 5% of total consumers choosing a rental subscription model over the more traditional download / purchase or subscription models.

  • http://www.livioradio.com Jake Sigal

    I disagree with Ambient Guy’s comment. I see rentals with audio being like rentals on netflix. There is a fundamental difference in that most people don’t watch the same movie every day as they listen to their playlists daily. However even with this difference, Netflix has proven that it’s better to pay a nominal fee per month and have access to 10000X that value of retail product, then to individually buy each song.

    I also have seen a strong growth in listening to music on Youtube (even with non video songs that just have a static screen.)

    There used to be a time when the masses wanted to own a “music collection”, that time has ended and switched to owning the best “playlist collection.”

    If I were in a band I’d recommend saving the money on CDs and making up T-Shirts instead.

    jake sigal, ceo
    livio radio