Vinyl albums, eight-track tapes and cassettes are old school. But so are CDs now. Will digital downloads, like MP3s from iTunes, be next? Are we deep into a new revolution where we get most of our music from streaming services, like Spotify, Pandora and now Beats? And what’s the next big thing after that?
What can you predict about the future of the music industry?
In “Apple to Pay $3 Billion to Buy Beats,” Brian
X. Chen writes about Apple’s big bet on streaming music:
Apple, the company that turned digital music into a mainstream phenomenon, said on Wednesday that it was buying Beats Electronics, a rising music brand, for $3 billion, in a move that will help it play catch-up with rivals that offer subscription-based music services.
Apple and Beats executives said the companies would work together to give consumers around the world more options to listen to music. The Beats brand will remain separate from Apple’s, and Apple will offer both Beats’s streaming music service and premium headphones.
Apple said iTunes, which sells individual songs and albums and offers a streaming radio service, would be offered alongside the Beats music service. …
For Apple, the acquisition of Beats, expected for weeks, largely follows a familiar pattern. Apple has historically bought technology outfits that have resources and talent that it can blend into future devices and online services. Beats fits that criterion.
But the Beats deal is also different. Until now, Apple, the richest tech company in the world, has avoided billion-dollar takeovers in favor of smaller deals. The Beats deal is its largest ever.
Apple declined to disclose plans for products it will make with Beats, so it will take time to see how the acquisition materializes. In the meantime, it will raise questions about why Apple, the pioneer of digital music, is buying a music company instead of expanding its own products.
The growth of Apple’s iTunes Store is being hurt by companies like Spotify and Pandora, which allow people to stream music freely with ads or with a paid subscription.
Students: Read the entire article, then tell us …
— What can you predict about the future of the music industry?
— Will streaming services, like Spotify, Pandora and now Beats, be the way most of us listen to music? Which streaming service will beat out the competition? Why?
— Are digital downloads on their way out? Or will people always want to buy individual songs and albums?
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