Apple sets up cloud music deals: Fends off Amazon, Google

Apple hasn’t even announced a cloud music service yet and already the bar has been raised, with the iCloud - or whatever Apple ends up calling it - fast becoming the one to beat. In part, that’s because Apple.
By: wholesaleeshops
 
May 20, 2011 - PRLog -- Apple hasn’t even announced a cloud music service yet and already the bar has been raised, with the iCloud - or whatever Apple ends up calling it - fast becoming the one to beat. In part, that’s because Apple, according to reports, has already sealed deals with three of the 4 major record labels and is gearing up to make its cloud music announcement next month.

Also: Apple sets up cloud music deals: Fends off Amazon, Google

Even though Google jumped into the game before Apple, it’s clearly the underdog here. The cloud Music product it announced at Google I/O earlier this month is a bare-bones, invitation-only beta offering that is nothing more than an interface to manage tracks and playlists. It needs a lot of work.



Apple, on the other hand, has a huge advantage in the digital music game because of its success with iTunes and the iPod. Consumers are already invested in iTunes - and shifting them over to a cloud model should be a snap.

But the cloud also changes the way the game is played. And if Apple misses the mark or otherwise alienates some of that iTunes base, there’s a chance that Google will find its open window to gain some traction. After all, that’s really what this is about - challenging Apple, not beating Apple.

Apple clearly dominated digital music, largely because of the mainstream success of the iPod. But when Apple locked itself into an exclusive deal with AT&T for the iPhone in the U.S., it gave Google the opportunity it needed to develop Android into a solid competitor. That same window of opportunity is what Google - as well as Amazon, which launched its own cloud music offering weeks before Google - needs to develop a cloud music model that can give Apple a run for its money.

I’ll be on the lookout for three key things when Apple makes its cloud music announcement, watching for these open windows.

Pricing: Rumor also has it that there may be a subscription fee for the music cloud service. This could be a deal-breaker. I’m not too big on fees, especially when 1) a large chunk of the music I want to play is music that I’ve already purchased, 2) I’ll already be paying for tracks that I buy through iTunes, and 3) I also paid a pretty penny for the mobile device that I’m using to access that music. Haven’t I paid enough?
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One other thing: I’m not big on renting music, either - a la Apple TV. If, for some reason, I decide to leave the service or stop paying down the road, I would want to keep the music I already paid for. That model of continuing to pay just to access music you’ve previously paid for is no good.

Capacity: Apple is big on tiered pricing based on storage. A 16 GB iPhone will cost you $199 while 32 GB will set you back $299. It was that way for the iPod, as well. But how does this play out in the cloud? Is that where the fees come in? There are plenty of people out there who have massive digital music collections, not to mention what they’re doing with photos and video. I’m really interested in seeing how Apple handles this.

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Tags:Apple, Sets Up, Cloud, Music Deals, Fends off Amazon, Google
Industry:Computers, Consumer, Manufacturing
Location:Balmain - New South Wales - Australia
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