Apple may change Beats brand as it spins up music service

Apple may change Beats brand as it spins up music service
There are conflicting reports about what exactly will happen with Beats Music. The $10-a-month subscription streaming music service was acquired when Apple bought Beats for $3 billion. The service could be scrapped entirely, according to TechCrunch. Or the service could continue with its name slowly phased out, according to Recode. An Apple spokesman told CNET that the TechCrunch report that Apple will be scrapping the Beats streaming music service is "absolutely not true."It's more likely, as Recode points out, that the streaming service could lose the Beats Music name, perhaps taking on the much more well-known iTunes brand and becoming integrated with Apple's overall iTunes package."I was going to be a bit surprised if they kept it and left it unchanged," said Jackdaw Research analyst Jan Dawson, who said he always assumed Beats Music would adopt the Apple and iTunes branding.That there's confusion about the ultimate fate of Beats Music underscores the questions and uncertainty raised when Apple first acquired the company. Beats Music is a paid service that is somewhat similar to Apple's own iTunes Radio streaming music service (which is free and ad-based). Beats' main business is its popular line of stereo headphones. The TechCrunch report notes that the new iPhones didn't ship with a Beats Music app pre-installed, but last week'supdate to Apple TV added a Beats Music app for the first time. Beats Music is a relative newcomer to the streaming music business, having launched in January with AT&T as its main carrier partner. Beyond iTunes Radio, which launched last year, it also faces entrenched players in Spotify, Pandora, and Rhapsody.See alsoApple taps Beats Music CEO as iTunes Radio's band leaderApple closes $3B Beats deal, welcomes the company 'to the family'iTunes head Cue and Beats' Iovine: Apple will put Beats on steroidsApple TV software update brings Beats Music, Family SharingWhen Apple closed its takeover of Beats in August, it also installed the head of Beats' music service -- Ian C. Rogers -- as the leader of iTunes Radio. At the time, a person familiar with the matter said the two services would pool expertise and resources but would remain separate services, at least for a short while.Apple also eliminated about 200 of Beats' 700 full-time positions, a person familiar with the matter said in August. The cuts largely come from human resources, finance, and other positions that overlap with current Apple workers, the person said. The people in eliminated positions have time to find other jobs within Apple, and some been given support for up to a year to find other jobs.Apple launched iTunes Radio with fanfare in September of last year as its arrival to the streaming-music scene. Streaming music, while still a small part of the bigger recorded music industry, is growing rapidly. Global revenue from subscription and streaming services increased 51 percent to top $1 billion for the first time last year.Though iTunes Radio notched 20 million users listening in to a billion songs in its first five weeks, the service has dropped off the radar since. Its prime competitor, Pandora, didn't see much difference in its audience growth in the months after Apple rolled out iTunes Radio. Other streaming services have also made splashy entrances to divert attention away, like Amazon Prime Music in June and, of course, Beats Music in January.The addition of Beats Music to the Apple family was an about face for a company that for years dismissed a subscription model of payment for entertainment. Beats Music provides all-you-can-eat access to a catalog of 20 million songs for about $10 a month.Dawson said there were likely parts of iTunes and Beats Music that were redundant, and that Apple could shut down elements of Beats Music without tampering with the core of the service. Apple could make a splash at its rumored October event, he said."That would be a good opportunity for them," he said. "There's no reason they couldn't resurrect that old theme of iTunes launches in the fall."Updated at 4:15 p.m. PT with comment from Apple and background information.


Lala chief could steer iTunes away from downloads_0

Lala chief could steer iTunes away from downloads
He is very close to Eddy Cue, the revered Apple exec who runs iTunes. What may be most important about Nguyen is that he has long had plans to take down the MP3 format. (In Apple's case, the company uses the unprotected AAC format) He has often said that MP3, the digital audio format embraced by so many music fans, is on its way out. He believes downloads have outlived their usefullnessand that in the future, consumers will store their music in the cloud instead of on their hard drives. "Will you ever (in the future) use an electronic device if it's not connected or doesn't have a browser?" Nguyen asked me a year ago. "You've got to face it, there's nothing you don't do in a browser."Palo Alto, Calif.-based Lala started as an online marketplace where users arranged to swap CDs with each other. Lala then began streaming music to Web-enabled devices. The company would scan a users' computer hard drive and then enable the person to access the same songs--provided Lala had the rights--via the Web. According to a report in The New York Times, Lala had concluded that it wouldn't reach profitability anytime soon and approached Apple in the hopes of making a deal. The end of iTunes downloads? The natural conclusion to make here is that by acquiring Lala, Apple may be laying the groundwork for a move away from the traditional song download. If this is correct, it would be stunning in that Apple has built a retail empire by selling downloads. If Apple is preparing such a plan, that would suit the music industry just fine. Plenty of people at the top four labels have long been uncomfortable with unprotected music files. The major recording companies favor formats that protect music from being copied and shared. Label executives have also said that selling individual songs isn't a good business as the profit margins are small and it's a not a modelthat can't grow. Nguyen's ideas appealed to many at the music labels, particularly those at Warner Music Group, which invested $20 million into the company. In May, Warner announced that it had to write down about $11 million of the Lala investment.Some of the music execs I've talked to say they see a world where music buyers will leap at the chance to buy a song for life. In a world where music is stored on the servers of big companies, a consumer never has to worry about losing a song library to a broken hard drive or lost music player. Of course, consumers would likely pay a premium for this life-time ownership and cloud-based service, but many in the industry feel that the public is ready for that kind of offer. By all appearances, Nguyen could be the architect of this vision at iTunes. Regardless of Lala's shortcomings, the company created something good enough to lure Google and Apple, two of technology's most successful companies. That alone isn't a bad resume. And when you look at the $85 million purchase price, Nguyen engineered by far the best exit in the the battered digital music sector in at least a year.There's something else to keep in mind about Nguyen; he recovers from spills quickly, usually in time to catch the next big wave. Hang 10, Bill.


Apple will replace your defective iPhone 5 battery for free

Apple will replace your defective iPhone 5 battery for free
If you find your iPhone 5 runs out of juice too quickly, Apple has a fix. The Cupertino, Calif., electronics giant said it has "determined that a very small percentage of iPhone 5 devices may suddenly experience shorter battery life or need to be charged more frequently." Apple will replace the batteries in those devices, sold between September 2012 and January 2013, for free. You can check to see if your phone is eligible by plugging your serial number into an Apple site. We've contacted Apple and will update the report when we have more information. See alsoiPhone 6: Sorting through fact and fiction around Apple's upcoming smartphoneWWDC set the stage. Now Apple needs to deliverApple sets Sept. 9 for new iPhone debut, report saysCNET's take on the iPhone 5The iPhone 5 battery replacement follows similar programs for other Apple devices. The company last year reached out to customers after discovering a manufacturing issue in a few thousand iPhone 5S devices that caused the batteries to take longer to charge or drain quicker. In 2005 and 2006, it recalled nearly 2 million laptop batteries for its PowerBooks and iBooks because of overheating. Apple also has recalled laptop flash drives and MacBook MagSafe power adapters that were prone to splitting. The iPhone 5 also has seen previous issues. The company in May started a replacement program for the sleep/wake button for the device. In that case, the button on iPhone 5 models manufactured through March 2013 sometimes stopped working or worked only intermittently. Apple fixed the issue for free for eligible customers. Unlike other models of its smartphone, Apple sold the iPhone 5 for only one year. It replaced the device with the premium iPhone 5S and the colorful, plastic-encased iPhone 5C in late 2013. The company plans to release its newest smartphone, dubbed the iPhone 6, next month. Apple likely will introduce bigger screens in its device -- possibly 4.7 inches and 5.5 inches versus 4 inches in the current models -- and that could help the company post its biggest launch ever. The iPhone accounts for more than half of Apple's sales and is key to its growth. Apple iPhone 5See full gallery1 - 4 / 10NextPrevThe iPhone 5 battery replacement process in the US and China began August 22. It will be available in other countries as of Friday. The battery can be replaced at an Apple authorized service provider, Apple retail store, or through Apple technical support. To prepare the phone for the battery replacement process, Apple recommends backing up data to iTunes or iCloud, turning off the "Find my iPhone" feature, and erasing all data and settings. If the iPhone 5 has any damage, such as a cracked screen, that impairs the replacement of the battery, that issue needs to be resolved prior to the battery replacement. The company said "in some cases, there may be a cost associated with the repair." It also said the battery replacement program doesn't extend the standard warranty coverage of the iPhone.The program covers defective iPhone 5 batteries for two years after purchase of the device or until March 1, whichever provides longer coverage. Users who already paid to replace their iPhone 5 batteries can contact the company about a refund.