News - 08/10/2015

Jimmy Iovine states freemium streaming services are “building an audience on the back of the artist”

Jimmy Iovine states freemium streaming services are “building an audience on the back of the artist”

Jimmy Iovine, producer-entrepreneur-turned-corporate-executive following the acquisition of Beats by Apple, stayed true to his usual outspoken self during a discussion at the New Establishment Summit put together by Vanity Fair in San Francisco. 

Iovine stated that freemium “is a shell game. These companies are building an audience on the back of the artist.” This is a pretty cutting accusation aimed directly at Apple Music’s biggest competitor: Spotify.

However, his strongest remark was aimed at YouTube, as he stated: "They have 40 percent of music listening and 4 percent of the revenue. That's bullshit! Do they care? I don't know!"

Apple may be on a high horse now, however it’s important to bear in mind that the company - before Taylor Swift caused a policy u-turn - had tried to strong-arm the music industry into accepting zero royalties during Apple Music’s three-month trial period. Iovine does mention that episode during the talk, stating that it happened on Father's Day and that he was really impressed by the speed of Apple's reaction.

Iovine stated that he likes Apple because they are trying to keep the crossover of technology and liberal arts going. This was the foundation of Steve Jobs’ success and it’s great to hear that that attitude is still alive and well at the company.

The executive stated that Apple Music is doing well however he stopped short of giving any numbers. Industry press is currently extremely curious as to Apple Music's retention rates, after the company stated in August (before any of the free trials had ended), that it had ammassed 11 million users. 

 

(Andrea Leonelli) 

 

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