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Fri, Mar

Apple Music Executive Jimmy Iovine Hints The Company Could Kill iTunes Downloads

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There is a hugely popular Apple feature that could soon be killed off by the tech giant, despite being a move the company has long denied.

According to Apple Music executive Jimmy Iovine, Apple could soon be doing away with iTunes downloads.

While he didn’t confirm an imminent shutdown of the iTunes download store, the exec who has been promoting the Netflix/HBO documentary The Defiant Ones suggested it’s “inevitable” that the service will soon be gone forever.

“If I’m honest, it’s when people stop buying. It’s very simple,” he told the BBC.

Iovine also suggested streaming services are too similar, with Apple Music needing to diversify in order to survive.

“The streaming services are all charging $9.99 and everyone has the same music,” he said.

“And it’s really nice. You get whatever song you want, you get your playlists - but there’s got to be more interaction between the artist and the audience.

“Sooner or later, something’s got to give.”

The industry legend expressed Apple’s desire for more original content on its service, so that is can have a point of difference because as it stands currently, “the labels want you to have the same music”.

Apple has had some success with exclusives in the past, scoring big hits with Dr Dre’s Compton, Drake’s Views and Frank Ocean’s Blonde, but Iovine said there is still work to be done.

“[Streaming services are] not enough as just a utility where you go there and you get the music. They have to move you, bring culture to you,” he said.

“I don’t think any of the services are there yet. They need to be cultural hangars for people to go to, where artists communicate with their audience.

“I’m very dedicated to that.”

The move comes as Apple set aside $A1.2 billion to spend on original programming for its own streaming service.

While the amount falls short of the $A7.5 billion Netflix spent last year and is about half of what HBO spent during the same period, Apple is confident it can still rock the boat.

As part of this push, the company has given a straight-to-series order for a psychological thriller series developed by M. Night Shyamalan, a morning show drama from Jennifer Aniston and Reese Witherspoon, and has also poached two long-time Sony Pictures Television executives responsible for some of the most widely acclaimed programming of the past decade.

Apple hopes that by 2020, the inclusion of original programming will more than double its $A30 billion services revenue, which includes App Store sales, Apple Pay and Apple Music.

While the company did not elaborate on its strategy, it hinted that it will be looking to increase its original content from the karaoke shows and app development-based TV already on its $10-a-month streaming service, Apple Music.

A late push into the competitive world of online streaming might have its challenges, but Apple has an advantage to help its cause — a wide distribution and advertising platform from the one billion iPhones, iPads and other devices that run the tech giant’s mobile operating system.

Moody’s analyst Gerald Granovsky said a ploy to create its own original content and secure licensing deals for an expansive library would be cheaper than to buy a pre-existing content company.

“From a credit perspective, we’d much rather see Apple overpay to deliver original content than pay $50 billion to buy Netflix and basically compete for the same content,” he told News Corp. “They’ll definitely get a better bang for their buck by focusing on their Apple TV product.”

news.com.au

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