You'll See Apple Inc. Streaming More Music Soon

Falling interest in downloaded tracks has executives talking with labels about an Apple Inc. streaming service capable of rivaling Spotify.

Mar 27, 2014 at 9:25PM

Would you subscribe to an Apple (NASDAQ:AAPL) streaming music service? You may soon have the option, Billboard reports. Fool contributor Tim Beyers explains the implications of the proposed move in the following video.

We're still too early in the process to know exactly what's planned. But if Billboard's reporting is to be believed, Apple's streaming service would mirror Spotify by giving listeners the ability to find, play, and even purchase the music they want on demand.  The Mac maker is also toying with the idea of releasing an iTunes app for Android.

Investors should like the strategy. Billboard cites Nielsen Soundscan data that shows sales of digital albums and tracks falling by double-digits as streaming alternatives grow more popular. In fact, according to the International Federation of the Phonographic Industry (IFPI), Spotify and its peers were responsible for more than $1 billion in revenue last year -- a 51% year-over-year improvement. The download disruption is already well under way.

If Apple's music business hasn't taken a noticeable hit, it's because the iTunes Store is a more diversified enterprise than it used to be. Revenue zoomed 19% to $4.4 billion in the latest quarter from not only music, but also apps and, at last count, 800,000 TV episodes and 300,000 movies daily.

So what can investors expect from an Apple streaming music service? A fight for share that's likely to involve -- at least in the short term -- cheaper prices for premium versions of Spotify and Beats Music. Pandora Media (NYSE:P) isn't likely to be as affected, Tim says, if only because the company is targeting terrestrial radio as others focus on disrupting the album distribution business. Do you agree? Leave a comment below to let us know what you think of the prospects for an Apple streaming music service.

The shared elements that make Pandora special, and which have made so many investors rich
Did you know that Motley Fool co-founder David Gardner has been following Pandora in
Motley Fool Rule Breakers for a while now? He sees it as having several of six unique qualities that lead to outrageous returns for shareholders -- a template that's led him to pick stocks that have returned 926%, 2,239%, and 4,371%. Or, in one extreme case, a stock that recently returned 100 times the buy-in price at the time of David's recommendation. We've covered everything you need to know about his proven process in a new report that includes six more picks with as much potential as Google. Click here to get your copy now -- it's free.

Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends Apple and Pandora Media. The Motley Fool owns shares of Apple and Pandora Media. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers