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Apple's good week: Jobs says no iTunes subscriptions

While pressuring the major labels to drop their use of DRM (digital rights management), Apple Inc. (NASDAQ: AAPL) head Steve Jobs took some time to comment on the rumors about the iTunes Store switching to a subscription-based service. His response was that customers do not seem interested in the subscription model, because they want to own the music they purchase (at least from iTunes). At the same time Jobs told Reuters not to rule out the prospect entirely.

This is certainly good news for Apple, especially considering in the wake of these comments the stocks closed higher than they had been all week last week. The prices closed at less than $94 on Monday, reaching as high as $99.95, before closing .03 lower on Friday. The jump between Jobs's comments on Thursday and Friday was 1.08 as well, but the biggest gain was between Wednesday's closing and Thursday's, with over $3 gained.

These numbers may not be as high as Apple or consumers would like, but they represent strong growth for the company, especially as the summer music season arrives next month and the coming launch of the iPhone in June. If that product and Apple TV are a success, and Jobs can continue to pressure labels to drop DRM, Apple may be in sight of a nice summer.

Do consumers care if the album dies?

As I continuously ruminate about the state of music, album sales, and the growth of online digital markets, how much consumers care about these topics is something I have not strayed too close to. I think it is safe to say that consumers do care, but I cannot say if it is to the degree with which I am fascinated and write about it.

I was reminded by a mentor and colleague a few days ago how easy the use of Apple Inc.'s (NASDAQ: AAPL) iTunes Store and iPod are if you are hoping to listen to only one song or a few songs, but not an album. Of course, that very dynamic is what I so often write about in my blogs about the death of the album, but who exactly is decrying the death of the album? No matter how much I write about that death, it is very apparent that those who are worried about the death of such a money maker are the labels and the industry.

The nice thing about iTunes and other digital stores is that if you are just browsing you can listen to clips of the songs. This is not a method of shopping that you can easily acquire at stores like Best Buy (NYSE: BBY) or Target (NYSE: TGT), although Best Buy is beginning to incorporate computer stations where you can make test runs of programs like Rhapsody and Napster. They hope you will then sign up for a subscription to that service through Best Buy. Browsing at stores like these only ever really entails looking at the product. If you know nothing about it, then you cannot know if it will be something you are happy to spend your money on.

Continue reading Do consumers care if the album dies?

Will eBay justify Skype purchase through ringtones? No, says Fool, but take a look at songs

cell phone in the coffee shopThere's nothing like a ringtone to set a girl apart from the other hangers-out at the coffee shop. Ringtone sales have been huge, says the Motley Fool's Rick Aristotle Munarriz, for companies like Infospace. But when Skype started selling ringtones, it was to a big ol' yawn from users - who really needs to set his computer ringtone apart from the other computers in his home office?

Munarriz sees a lot of potential, however, in the music download market. His belief is that Skype's 100 million-plus registered users might finally be monetized through music (and, naturally, video downloads and concert tickets), at last justifying eBay's purchase.

I have a hard time seeing this as such a huge advantage, personally - I'm a faithful Skype user, but I've never spent a penny with them. And music won't be the place where I start.

I own a few shares of eBay and zero Skype ringtones.

Skype jumps on the music download bandwagon

Skype, long the darling of VOIP newbies like me, is nothing if not a bandwagon-jumper. The company, acquired by eBay last September, has never stayed true to its phone calling roots, dabbling in everything from instant messaging to voicemail to videocasting. And we know it: everybody's doing ring tones.

The latest bandwagon, straight from the playbooks of the rest of the phone calling world: music downloads. Today Skype signed agreements with a number of the music biggies, including Warner / Chappell Music, EMI Music Publishing, and Sony / ATV Music Publishing. These agreements will allow Skype to distribute many of its ringtones "lawfully" (was it unlawful before, I wonder?) from artists like Madonna, Depeche Mode, and the Red Hot Chili Peppers.

So I've got to know: how long before Skype launches a campaign where they play some hip-shaking song from the most commercially over-exposed group on television, the Black-eyed Peas? I predict it won't be long.

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Last updated: May 28, 2012: 06:16 PM

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