In its bid to become a power in music streaming, Apple Inc is devoting its vast resources to create what it hopes will be a first truly global radio station.
The US$750 billion company, whose iTunes revolutionized how disparate parts of the world buy music, tomorrow launches Apple Music as it sees consumer trends shift to streaming, which allows on-demand unlimited content online.
At the heart of the strategy is Beats 1, which bills itself as a first global radio station and will be available in more than 100 countries.
Beats 1 will be free even without a subscription to Apple Music, whose streaming platform costs US$9.99 a month after a trial period — a key distinction from streaming leader Spotify, which offers a free tier for on-demand music despite criticism from some artists.
Apple Music has sought to make a splash through big names on Beats 1, poaching the influential New Zealand-born DJ Zane Lowe from BBC Radio 1.
The company has not named a full list of presenters, but Lowe in a profile by the New York Times said that pop icon Elton John, Happy singer and producer Pharrell Williams, rap mogul Dr Dre and prominent indie rocker St Vincent had all been enlisted to host shows.
Williams will debut a song for the launch of Apple Music, which enjoyed a dramatic boost when superstar Taylor Swift said she would stream her blockbuster album 1989 only on Apple Music.
Swift made the announcement days after threatening to boycott Apple Music for not paying royalties for streams during the free trial period, quickly leading the company to reverse itself.
Even if Apple is a major power in music, music is a small part of the company’s bottom line.
The iTunes store and other services made up less than 9 percent of Apple’s revenue in the quarter through March 28.
To many analysts, the concerted — and without doubt pricey — push into streaming and radio is aimed less at dominating the music industry than at promoting Apple’s key earner: iPhones.
Beats 1 “reinforces the cultural relevance of Apple as a fashion brand. Music is central to pop culture, and music is all about musicians and artists,” said Mark Ramsey, a media strategist and author of two books on the radio industry.
He said that Beats 1 will offer Apple Music a public face — an asset sorely lacking for Spotify, whose most identifiable figure is Daniel Ek, its young Swedish boss whose style is more investor than rock star.
However, Ramsey also said that Apple Music could ultimately benefit Spotify and other rivals, especially those with free tiers, by introducing streaming to the uninitiated.
“If Apple Music boosts the market for streaming radio, it’s going to float all the boats,” he said.
“Here it is, a major technology provider with a very loud, strong global voice essentially putting its stamp of approval on this category,” he said.
Beats 1 marks a revival of the human element in streaming radio, although it also allows listeners to generate stations through algorithms based on their preferences.
Days before Beats 1 goes live, rival Google Play announced its own online radio station with a human dimension.
It uses the model of Songza, the service bought last year by the search engine giant through which real people help select listeners’ playlists.
However, Google Play will only be available in the US. Likewise Pandora, the Internet radio leader which creates stations based on algorithms, is officially available only in two countries outside the US — Australia and New Zealand — owing to the maze of regulations on radio around the world.
While Beats 1 aims to be global, it will broadcast from just three cities — Los Angeles, New York and London, leaving the vast majority of the world uncovered.
Technological innovations have already given a global reach to prominent radio stations including Britain’s BBC Radio 1 and Amazing Radio, New York’s WQHT and Los Angeles’ KCRW, but globally, adult listeners still tune in to traditional AM/FM broadcasts 86 percent of the time, according to 2012 Nielsen figures.
Cortney Harding, a consultant to music start-ups and a former editor at industry journal Billboard, said not to underestimate the appeal of traditional radio with its mix of local news, weather and event listings.
“People still respond to that. So I think [Beats 1] is going to do well, I think it’s going to be interesting; I don’t know that it’s going to be that massive,” she said.
TECH RACE: The Chinese firm showed off its new Mate XT hours after the latest iPhone launch, but its price tag and limited supply could be drawbacks China’s Huawei Technologies Co (華為) yesterday unveiled the world’s first tri-foldable phone, as it seeks to expand its lead in the world’s biggest smartphone market and steal the spotlight from Apple Inc hours after it debuted a new iPhone. The Chinese tech giant showed off its new Mate XT, which users can fold three ways like an accordion screen door, during a launch ceremony in Shenzhen. The Mate XT comes in red and black and has a 10.2-inch display screen. At 3.6mm thick, it is the world’s slimmest foldable smartphone, Huawei said. The company’s Web site showed that it has garnered more than
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
Vanguard International Semiconductor Corp (世界先進) and Episil Technologies Inc (漢磊) yesterday announced plans to jointly build an 8-inch fab to produce silicon carbide (SiC) chips through an equity acquisition deal. SiC chips offer higher efficiency and lower energy loss than pure silicon chips, and they are able to operate at higher temperatures. They have become crucial to the development of electric vehicles, artificial intelligence data centers, green energy storage and industrial devices. Vanguard, a contract chipmaker focused on making power management chips and driver ICs for displays, is to acquire a 13 percent stake in Episil for NT$2.48 billion (US$77.1 million).
RSS