Tag Archives: Apple Music

More than 50% of Apple`s revenue comes from the iPhone sale and Service is a growth sector

More than 50% of Apples revenue comes from the iPhone sale, but for how long will that last? Its dangerous for a company like Apple to think it will last for the next hundred years, and that`s probably why CEO Tim Cook have targeted service as a growth sector.

Iphone is still a very important product for Apple and therefore it will be much talked about, but other products are also good and should be one the plan. Service revenue from iCloud, the App Store and Apple Music can all grow in the future.

We know the evolution of the mobile phone industry. The Swedish company Ericsson was hot during the 90s, before Finlands Nokia took over the throne, but it didn`t last forever. As you may know, Apple launched iPhone and have since then been the king of Smartphones.

Smartphones won`t last forever, and once those phones are “out”, Apple must be prepared and think fast. The way we use our phone as we know it today will change.

Apple`s market cap is $848,35 Billion and so far it has been a great ride for the last ten years. Their multi-hundred billion cash stockpile gives them a great opportunity to spend money on M&A, but also R&D.

Morgan Stanley thinks the company could increase the capital return program by $150 Billion. Earlier this year, Apple said it expects to pay $38 Billion taxes on what it plans to repatriate, implying it will bring back nearly all of its $250 Billion in overseas profits.

The Street are concerned about the iPhone X sale and total revenue based on higher selling prices. Service are growing about 20% YoY, but the revenue from iPhone X can be worse than investors like to think.

The newest generation of iPhones is not as good as the iPhone 7 has a year earlier. Maybe it is because of a stiff price or maybe consumers go for a cheaper phone?

Shares of Apple are flirting with 200 MA and after a jump of nearly 2 percent on Monday it will be interesting to see if the results on Tuesday will send the stock in the bullish territory or down again.

Apple Inc is expected to report earnings on 1 May 2018, after market close, and the report will be for the fiscal Quarter ending March 2018. Earnings for the quarter is $2,69 which is better than last years $2,1.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Taylor Swift is out with a new album called “Reputation”, but it won`t be available on Spotify or Apple Music

Taylor Swift is out with a new album called «Reputation», but it won`t be available on Spotify or Apple Music. Not so far. This is the long-awaited sixth album with singles like «Look what you made me do», «Gorgeous» and «Ready for it.»

So, what are fans gonna do if they want the new album? The new album will be available at Walmart, Target, iTunes store and her own official store. Streaming will be possible at the iHeart Radio All Access Powered by Napster app.

Taylor Swift is not only a great artist, but also a smart business woman. She had previously pulled her own music from streaming services like Spotify in protest against low royalty payments.

She protested before the release of the new Apple Music streaming service in 2015, when she threatened to withhold her music from the service unless artist were paid fairly for their own music.

Adele did the same when she released her album «25». She waited for about seven months to release it to streaming services, and she can afford to do it like that. So can Taylor Swift. They are both famous enough to do it.

Spotify is probably years away from profitability. Last month they reported better deals with music labels with a 40% growth in revenue but they are still losing money. Investors estimate the value of Spotify to be about $16 billion, which is up from $13 billion earlier this year.

Spotify`s revenue for the first six months of the year is $2,2 billion. Gross margin is 22%, which is up from 15% in all of 2016. Operating loss is between 100 million and 200 million euros ($118,4 million and $236,8 million), according to the Information.

Spotify has about 140 million active users and more than 50 million are paid subscribers.

Taylor Swift`s new songs can all be found at YouTube. Not only the music but also the videos.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Apple Music appeared to set a goal of 100 million paying customers

Apple Music has been growing fast in a very short period of time, but they are far away from its biggest competitor Spotify. This summer, Apple has been on the market in only two years, and have about 20 million subscribers.

This is pretty impressive and it makes Apple Music the second-largest on-demand streaming music site in the world right now. Competitors like Napster, Tidal and Deezer are far away from both Apple Music and Spotify.

 

Earlier this month, Spotify announced that it has reached a new milestone, which is a total of 50 million paying subscribers. That`s up 10 million since September last year.

This is actually not the whole picture right now, because the Swedish Streaming firm has over 100 million users were many of them are listening to the ad-supported free tier which is not possible at Apple Music.

The competition is hard and Spotify and Apple Music is far ahead of a handful of other competitors in a very difficult industry. Apple Music`s tactic using exclusives to lure new customers has not been “music in the ears” for Spotify, and they are both testing new features and subscription models to get new customers.

Apple Music plans to use original TV programming to entice subscribers, debuting shows like Carpool Karaoke on Apple Music.

Spotify has started testing a lossless version of its streaming service to attract audiophiles.

The popularity of streaming is growing and so are the number of users in the streaming music space. Apple Music appeared to set a goal of 100 million paying customers. Spotify need to double its user-base to reach that goal and will probably hit that milestone faster than Apple Music.

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Facebook are dealing with the music industry

Facebook has a lot of DAU`s and more and more people spend time watching videos. Facebook is a young company and so far they already have billions of video views. But Mark Zuckerberg want to prosper from this industry.

There is no doubt that YouTube is the most popular video-sharing company in the world. Many artist has started their carriere at YouTube and one of them is Justin Bieber. In 2016, YouTube gave the music industry $1 billion in ad revenue, and Facebook wants to join.

 

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Streaming was a game changer on how media is bought. It changed how it`s consumed. It also changed who profits from it, and of course how much they all made in this industry. For the first time in 20 years, the music industry saw significant revenue growth in 2015.

The revenue from streaming is $2,9 billion world-wide, and revenue from video on demand rose almost 9% in 2015, and music clips can move about $50 – $70 billion from TV industry.

Facebook has nearly 2 billion users and still a growing advertising business, and a deal with the music industry can be a win-win agreement, which means billions in revenue from new sales for the music industry.

The interest in videos is growing and Facebook want to prosper from that, and that’s why they are so interested in music rights. Facebook moved billions in ad revenue from print and now many online firms have targeted TV.

Facebook are not alone on the market and they need to share some of the market with Twitter and Snapchat, but the biggest of them all is YouTube which is Faecbooks main rival. Googles YouTube channel said music is one of the most popular types of videos on their on-demand service.

TV networks and News organizations are experimenting with Facebook, just like they did with YouTube and this will continue. This is interesting because Facebook is big.

Thanks to streaming, the music industry is growing again and that is because of the paid streaming services from Apple and Spotify.

Facebook will probaby sign a deal with the music industry before the summer this year.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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YouTube is dominant in the music streaming market and a new case for the European Commission

Consumer behaviour is very important for the music industry and a new research by IFPI contains key findings on changing consumer behaviour and provides valuable insights on the «value gap», which is the music industry`s most pressing priority.

«The value gap» is the massive mismatch between the growing consumption of music worldwide and the disproportionately small revenues that are returned to rights holders. It is caused by a market distortion allowing some major digital services to circumvent the normal rules of music licensing.

This denies musicians, artists, composers and investors fair compensation for their work; lowers investment in and diversity of new music; and skews competition among digital services. IFPI sees today`s proposal as a good first step in the process.

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Notably, the proposal confirms that user uploaded content services that promote and monetize music should be covered by the same copyright rules as other on-demand services.

Commenting on the proposal, IFPI Chief Executive, Frances Moore said:

«The music industry has transformed itself in recent years, licensing hundreds of services, widening choices for consumers and investing in new, creative ways to bring artists to a global audience.

But to achieve sustainable growth, the music sector needs a level playing field.

This means creating an environment where copyright rules are correctly applied so that creators and producers can be confident to invest and license. It also means allowing digital services to compete on fair terms and enabling consumers to enjoy access to diverse sources of licensed music.

«Today`s proposal is a good first step towards creating a better and fairer licensing environment in Europe. Importantly, it confirms that user uploaded content services such as YouTube, which are the largest source of on-demand music, should not be able to operate outside normal licensing rules.

However, there is a lot more to do to make this a workable proposal. We look forward to working on this in the coming months with the Parliament and Member States.»

The music consumer behaviour is changing, and this is the key report highlights:

  • Paid audio streaming is growing: 71% of internet users aged 16-64 access licensed music. Paid audio streaming services are growing in popularity, especially among under 25`s. One-third of 16-24 year old now pay for an audio streaming service.
  • YouTube is the most used music service: 82% of all YouTube visitors use it for music. More people use YouTube to consume music they already know than to discover new content.
  • Copyright infringement remains a significant problem: more than one-third (35%) of internet users access unlicensed music content. infringement is changing, with half (49%) of 16-24 year olds using stream ripping services to download music.
  • Young people are highly engaged with music: with 82% of 13-15 year-old listening to licensed music and the majority willing to pay for music.
  • Smartphones are moving towards replacing computers as the most used device for music consumption; especially in developing countries. Users of paid audio streaming services are particularly likely to listen to music on a smart phone.

Commenting on the report, Frances Moore, CEO, IFPI said:

«There are many positives for the music industry in this research: streaming services have revolutionised the experience of the music consumer, with growing numbers paying for audio streaming services;

listeners are responding to the benefits offered by on-the-go, on-demand access to music by moving more and more to the world of mobile, especially in emerging markets; and young fans are showing passion and engagement with music.

«Record companies, and the investment they make in music, are at the heart of this change. That investment is all the more important in the digital world, driving the creation of new music and helping artists connect with their fans.

«There are also key insights informing the policy debate on musics «value gap», the biggest problem for todays music sector. The research highlights the dominant position amongst music services of YouTube, as well as the fact that the site is used by consumers primarily to access music they know, on-demand.

Yet YouTube can get away without remunerating fairly artists and producers by hiding behind ‘safe harbour’ laws that were never designed for services that actively engage with and make available music enjoyed by the vast majority of its users.»

YouTube use a loophole in international copyright laws. The pay much lower licensing fees the music industry than services such as Spotify and Apple Music. YouTube considers itself a hosting platform rather than a content distributing platform.

This is a practice that has repeatedly been dismissed as unfair by record companies and competitors. YouTube say it is mostly a promotional platform for artists and record companies.

Spotify is twice as big as Apple Music. Spotify has 40 million paid subscribers, while Apple music has «only» 4 million. Spotify has 100 million of total listeners while Apple Music has 78 million.

To put that in perspective; YouTube doesn`t have any paid subscribers, but they are more than 8 times bigger than Spotify with its listeners.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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