In hopes to enhance their brand and create more competition, Apple Inc. (NASDAQ:AAPL) CEO Tim Cook met up with Beats Audio CEO Jimmy Iovine. In the meeting, they discussed something called “Project Daisy” which is reportedly a music streaming service.
Although Reuters’ sources say Cook is very interested in the project, no deals have been made yet. It was also reported that Eddy Cue (chief of media executive for Apple) was in on the meeting.
A few months ago, Jimmy Iovine shared the details regarding the upcoming music service and that he also planned on meeting up with Eddy Cue. Iovine also said that he previously pitched the music service idea to Steve Jobs when he was chief executive for Apple, but Jobs passed on the idea as he didn’t want to pay out that much money to record companies.
Iovine co-owns the Beats Audio brand but he’s also influential in Apple. He was one of the first music executives to sign the future iTunes deal. It’s also been rumoured that Apple Inc. (NASDAQ:AAPL) has plans to launch their own music subscription service that would be similar to Rhapsody and Spotify. Apple may launch a music service by the end of the year.
A music streaming service could possibly give Apple Inc. (NASDAQ:AAPL) a boost in profits but it could also hurt overall music sales for iTunes. On one hand, a music streaming service offers users access to an extensive music library for unlimited listening and many music streaming services start at $10 which makes it cost effective to the consumer. It might also be hard to break into the music streaming service business as they have a lot of competition from the likes of Rhapsody, which has been around for a long time. Hopefully, Apple Inc. (NASDAQ:AAPL) will make the right decision for the company.