Sony Mulls Dropping Out Of iTunes...

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Digital Retail Rumbles: Sony Mulls Dropping Out Of iTunes, Apple Applies For Music Cloud Tech
February 10, 2011 at 11:43 AM (PT)

The volatile world of digital music could get even more tumultuous in the coming days and week. DIGITAL LIFE reports that SONY is seriously considering the removal of its artists from APPLE's iTUNES store, as well as withholding its games from the iPHONE. Meanwhile, APPLE has applied for a patent for a system that could implement a music cloud service.

SONY's move against APPLE would complement its plans to launch MUSIC UNLIMITED, a competitor to iTUNES, in AUSTRALIA soon. Also debuting in that Continent later this year is a service that would enable mobile phone users to pay and play first-generation PLAYSTATION games on their handsets. The head of SONY's games unit in AUSTRALIA said it was unlikely to be available on the iPHONE or through iTUNES.

Does Sony Music need to provide content to iTunes? ... Currently we do. We have to provide it to iTunes as that's the format right now ... Publishers are being held to ransom by Apple and they are looking for other delivery systems, and we are waiting to
The SONY/APPLE relationship soured two weeks ago, when APPLE blocked SONY's electronic book application from the iPHONE because it would have bypassed APPLE's system for buying content.

When discussing the viability of MUSIC UNLIMITED, SONY COMPUTER ENTERTAINMENT CEO MICHAEL EPHRAIM said, "If we do [get mass acceptance] then does SONY MUSIC need to provide content to iTUNES? ... Currently we do. We have to provide it to iTUNES as that's the format right now ... Publishers are being held to ransom by APPLE and they are looking for other delivery systems, and we are waiting to see what the next three to five years will hold."

Clouds On Apple's Horizon?

APPLE could blur the lines between locally saved media files and additional content streamed from the cloud, listing all files as if they are part of the same media library on a device like an iPHONE or a MAC.

Meanwhile, APPLEINSIDER found a new patent application from Apple entitled "Audio Clips for Announcing Remotely Accessed Media Items," which details a system that would include a centralized list of media files -- files that could be saved locally or remotely. This would enable users of a cloud-based iTUNES music streaming service "to seamlessly merge their locally saved media files with additional content available for streaming via the Internet. Rather than having a separate list of cloud-based content, all of the media would be listed in one location, and the Internet-connected device would play back the selected content from the appropriate location."

"The device can include an audio clip of an artist name, song title, and album name, for example generated using a text to speech engine, or pre-recorded by an actor," the application reads. "The electronic device, however, may only locally store audio clips for media items that the device knows will be played back, for example locally stored media items."

"The application describes media being identified by locally stored metadata, detailing the artist, song title or album title of a particular track, or other information for different types of media. By reviewing this metadata, a connected device like an iPHONE could then begin streaming the appropriate content from the cloud, if the file is not locally stored on the device. APPLE's filing notes that streamed media could be made available through the iTUNES Music Store, or via an alternate source."

Source

[Rodze]

Typical Sony. And by "typical Sony" I mean stupid.

[Spidey]

This would be a stupid idea to drop out of iTunes, the largest digital retailer in the world...

[Adonis the DemiGod!]

That's stupid. Apple didn't ban Sony's app. Apple said sony needs to include a way for people to make the purchase with Apple's API or do like Amazon does and it directs people to the website to download the stuff they want. Apple gave them two options one they could use if it didn't go through All they have to do is include an additional button allowing people to buy sony's books from Ibooks. I think that's pretty fair considering Sony is putting their app on Apple's platform. Sony wants to take all the profit from Apple's platform and not give anything back for Apple maintaining the platform.

If Sony drops Itunes it doesn't people people will start buying CDs from sony again. They'll just get the leaked versions of the Sony material for free.

[Peaches. [Ch, r. is]]

If this means competitive/lower pricing, I'm in.

I do feel like Sony is digging itself into a bigger grave. As overrated as Apple is, people seem pretty loyal, so Sony is really limiting their audience. After poor decisions & sales from it's music labels, it's not like they have a good enough reputation to compete with Apple.

[pnobelysk]

can anyone put a list of the more popular/mainstream sony artists that ll be missing from itunes if/when this happens

[out of reach]

It's definately not going to help the music business but the music download scene does need more third party competitors to itunes.

[Peaches. [Ch, r. is]]

Feb 10, 2011 19:30:13 GMT -5 pnobelysk said:

can anyone put a list of the more popular/mainstream sony artists that ll be missing from itunes if/when this happens

Errr.. most of the major American Idols (all the winners, Daughtry and a few runner ups) from season 1-9, Britney Spears, Christina AguileraKe$ha, Chris Brown, Leona Lewis, Avril Lavigne, Jesse McCartney... ummm. As big as the Sony umbrella is, there's not many relevant pop artist lol

[Rodze]

Feb 10, 2011 19:33:23 GMT -5 Peaches. [Ch, r. is] said:

As big as the Sony umbrella is, there's not many relevant pop artist lol

Britney Spears, Beyonce and Pink are pretty relevant.

All the Glee shenanigans are also currently published through a Sony label, a fact makes this proposition even more stupid than it already is.

[jj99$ - - LeLe]

Beyonce
Glee
Ke$ha
Pink
Shakira
Kings of Leon
Michael Jackson
Avril
Adele
Leona
Britney
Christina
Kelly
Carrie
Chris Breezy
Usher
Willow
The Fray
John Mayer
J.LO
Justin
J-Hud


For Starters

Plus they Distribute for Roc Nation

[pnobelysk]

^id be sad to lose almost all of those :O

[johnm1120]

This is about as good of an idea as when NBC canceled their top rated shows.

[out of reach]

Feb 10, 2011 22:49:09 GMT -5 @hanleyus said:

I'm not surprised. There's a book out called "Appetite for Self-Destruction" by Steve Knopper that talks about how downloading killed the CD, something that Sony invented and engineered. Since Sony created the CD, they also created the CD player, and for all the CD's and CD players that sold, Sony would receive money from those sales, which is why CD's used to cost up to $20! And Sony was still pushing the CD, even when downloading was very fast on the rise. Now that iTunes has taken over, Sony can't make a dime just because they didn't invent the downloading technology first. Seems like Sony is taking their artists off iTunes out of bitterness.

well, not exactly. Sony does want to own the delivery platform in order to make the most money. That's what they are attempting to do, it's not bitterness, it's business.

Apple right now has pretty much a monopoly and that's not good for anyone but Apple. Amazon has not made much ground on downloads but imo for a label to own a delivery platform is bad news.

[out of reach]

On another note, this may just be a ploy to get a better deal from Apple but this has got to unnerve Apple because if Sony pulls out, maybe Interscope may decide to do something similar and iTunes will be gone.

[jj99$ - - LeLe]

You guys do realize that Apple doesn't make much from Itunes right. they get 30% of whatever is sold on the store and that goes towards server costs and general costs of running the store. they use it as a feature to get people to buy their devices.

[spooky21]

Feb 10, 2011 23:06:00 GMT -5 out of reach said:

Feb 10, 2011 22:49:09 GMT -5 @hanleyus said:

I'm not surprised. There's a book out called "Appetite for Self-Destruction" by Steve Knopper that talks about how downloading killed the CD, something that Sony invented and engineered. Since Sony created the CD, they also created the CD player, and for all the CD's and CD players that sold, Sony would receive money from those sales, which is why CD's used to cost up to $20! And Sony was still pushing the CD, even when downloading was very fast on the rise. Now that iTunes has taken over, Sony can't make a dime just because they didn't invent the downloading technology first. Seems like Sony is taking their artists off iTunes out of bitterness.

well, not exactly. Sony does want to own the delivery platform in order to make the most money. That's what they are attempting to do, it's not bitterness, it's business.

Apple right now has pretty much a monopoly and that's not good for anyone but Apple. Amazon has not made much ground on downloads but imo for a label to own a delivery platform is bad news.

Agreed. Apple has too big a monopoly and has record labels by the balls when it comes to pricing and revenue setting.

The industry really needed to come together a few years ago to deliver a mutual service to compete with Apple, instead they decided to go after illegal downloading which was pretty much a waste of time since they didn't really recoup much and just scared people into becoming from discreet....i.e by "downloading" and not "sharing".

Sony would be stupid to go off on it's own like that though. They need to get with Universal who seems to have stronger clout with Apple.

[Peaches. [Ch, r. is]]

Feb 10, 2011 20:42:10 GMT -5 Rodze said:

Britney Spears, Beyonce and Pink are pretty relevant.

Well I said "not many" leaving room for a few, Britney and Ke$ha obviously. But I had no idea Beyonce was under the Sony Umbrella :o

[badrobot]

Feb 11, 2011 3:04:37 GMT -5 jj99$ - - LeLe said:

You guys do realize that Apple doesn't make much from Itunes right. they get 30% of whatever is sold on the store and that goes towards server costs and general costs of running the store. they use it as a feature to get people to buy their devices.

30% is *huge*.

In the average week there are about 20 million singles downloaded.

If iTunes covers 75% of the market, and gets 30 cents per single (it's actually more on average since singles are now $1.29, but we'll round down), that's $4.5 million per *week* just from single sales, which ends up being nearly a quarter of a billion dollars a year. "Server costs" are *not* that expensive.

[#LisaRinna]

Beyoncé :'( SONY is out of their minds. What is up with record labels these days? I thought IDJ/Jive were the only messes around..

[badrobot]

Feb 11, 2011 11:35:01 GMT -5 @deleted said:

Feb 11, 2011 10:38:34 GMT -5 badrobot said:

30% is *huge*.

In the average week there are about 20 million singles downloaded.

If iTunes covers 75% of the market, and gets 30 cents per single (it's actually more on average since singles are now $1.29, but we'll round down), that's $4.5 million per *week* just from single sales, which ends up being nearly a quarter of a billion dollars a year. "Server costs" are *not* that expensive.

U clearly have no idea of what u are talking about... jj99$ was absolutely right.

mediamemo.allthingsd.com/20100225/apple-billions-of-songs-billions-of-apps-not-much-profit/

From that same article, "An alternate theory, held by some of Apple’s media partners–the company was being overly modest about its success."

If Apple said they were rolling in dough from taking their 30% cut, they'd have content providers rebelling and saying that they were being taken advantage of. Of course they're going to understate how much they are making.

I do not dispute that Apple's main moneymaking scheme is from selling hardware. But to say that selling billions of songs earns them close to nothing is silly.

[out of reach]

Apple is making a lot of money, it's even in this paragraph from the same article.

"Apple doesn’t break out iTunes sales, but lumps them into a category called “Other music related products and services,” which generated net sales of $4 billion last year"

They are just trying to not anger the music labels so they are downplaying it.

[jj99$ - - LeLe]

that's sales not
profit.

[badrobot]

I shouldn't have jumped at jj-- your point is right.

But if iTunes was a standalone company without hardware, it would still be profitable, just not as profitable as Apple actually is. You only need to earn a few percentage points more than you spend to net out as being profitable.

[jj99$ - - LeLe]

thats fine badrobot. I get where your coming from.

[badrobot]

Feb 11, 2011 13:07:53 GMT -5 jj99$ - - LeLe said:

thats fine badrobot. I get where your coming from.

Hugs?