In Cannes for the annual Midem global music conference, Sony Music CEO Doug Morris confirmed today that Apple will introduce its new streaming music service tomorrow at WWDC. "It's happening tomorrow," the executive blurted out during an interview on stage. The last reports had Apple sill negotiating with Morris' company, Warner Music and Universal in an attempt to finalize the percentage of revenue from the service that the labels would receive. Reportedly, the trio were asking for 60% of Apple's take.
Apple is expected to charge $9.99 a month for the streaming music service with a three-month free trial offered. A new music app should be included in the iOS 8.4 update and will be pre-installed in iOS 9. In addition to the streaming service, the app will include a revised iTunes Radio offering some DJ-hosted "stations." Once a growing business for Apple, the sale of downloaded tunes is slowing with the growth of streaming music outpacing it. Revenue from streaming will eventually overtake revenue from downloads, possibly as soon as next year.
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Morris says that Apple's name and reputation will make tomorrow a turning point in the industry. He cites the tech titan's willingness to market and advertise its businesses, something that rival streamer Spotify never really attempted. As a result, the Sony executive says that "It’s the beginning of an amazing moment for our industry."
"What does Apple bring to this? Well, they’ve got $178 billion dollars in the bank. And they have 800 million credit cards in iTunes. Spotify has never really advertised because it’s never been profitable. My guess is that Apple will promote this like crazy and I think that will have a halo effect on the streaming business. A rising tide will lift all boats. It’s the beginning of an amazing moment for our industry."-Doug Morris, CEO, Sony Music
WWDC kicks off tomorrow at 1pm EDT (10am PDT). Keep checking in throughout the day for all of the news coming out of San Francisco!
Sony Music CEO Doug Morris (at right) confirms tomorrow's unveiling of Apple's new streaming music service
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Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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