Jimmy Iovine, a former Apple Music executive, says all streaming services face the same differentiation problem, but at the same time points out that now is a good time to be a musician, according tomedia reports. The record producer and co-founder of Apple Music, who has been away from Apple for nearly 14 months, spoke to The New York Times about the status of the streaming music service.
He says every streaming service faces the same difficulties and describes what he learned from Steve Jobs, Apple and Napster.
“It’s all a response to Napster. I saw how powerful this technology was, and I realized that we had to change direction. Without technology, record companies can’t survive. I started out in the music industry to connect with cool things. I realized, however, that the record industry’s reaction to Napster was not cool. “
Twenty years ago, the record industry built a moat and sued others to protect its own interests, Says Iovine.
Later, he met Apple’s Steve Jobs and Eddie Coy and started a new journey.
Iovine also wants to study how people listen to his music, saying he learned a lot from Dr Dre’s focus on “cheap, inefficient devices.” When he decided to set up Beats Music, he learned from Apple how complicated it was to build hardware.
“In this Greek restaurant, Steve Jobs used to sit with me and tell me what i needed to do to make hardware,” Explains Iovine. He would say, ‘Here’s the distribution, here it’s made,’ and he would draw with a marker pen on the paper. I’d say, ‘Oh, (dirty words). ‘”
Iovine says his move from record producer to Beats co-founder to later joining Apple is not an example of a jump from music to technology. Although he sees technology and music as part of the same thing, others don’t think so.
Later, Iovine points out, the problem with streaming is that margins and music services don’t really differentiate. “At Netflix, the more subscribers there are, the lower the cost. In streaming music, the cost follows you. Streaming music services are utilities — they’re all the same. See what’s in the video. Disney has only original things. Netflix also has a lot of original content. But music streaming services are the same, and that’s a problem. “
He also believes that there is no longer a direct relationship between record companies and music consumers. But again, it’s a big problem for musicians and performers.
“Music people now have something they’ve never had before, and that’s being able to communicate with their audience on a large scale, directly — from their houses, beds, cars, and so on. “That’s why everyone wants them. Spotify wants them, Apple Music wants them, Coca-Cola wants them, Pepsi wants them. So pay tribute to the musicians, because in the end they won. How streaming and record companies make money is not their problem. The question for streaming and record companies is how to make these musicians more valuable. “