Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL) Eyes Free, Unfettered Music Streaming

Apple Inc. (NASDAQ:AAPL) has not made much of a secret of its desire to improve its entertainment experience. With the company currently talking with cable providers about getting into live streaming video, Apple Inc. (NASDAQ:AAPL) is also taking a hard look at music and how it might develop a interactive streaming experience for users – one that might rival Pandora or Spotify but to a different level.

Apple Inc. (NASDAQ:AAPL)

And in order to do that, Apple Inc. (NASDAQ:AAPL) is having conversations with copyright and license holders for millions of songs, and is working to develop a free, ad-sponsored but unrestricted experience for users. In order to do that, to work around current copyright protections and be cost-effective, Apple Inc. (NASDAQ:AAPL) is working to achieve some direct licenses from many of the top record labels and distribution companies in the music business. If this work gets completed soon, then it’s possible that a music service from Apple Inc. (NASDAQ:AAPL) could be available sometime in the first half of 2013.

While Apple Inc. (NASDAQ:AAPL) could provide this service earlier – even next week if it wanted to – the direct-licensing approach is more cost-effective for Apple Inc. (NASDAQ:AAPL) and less restrictive for the company and users of the service. For example, direct licensing means that Apple Inc. (AAPL) could have music channels dedicated to a particular group (the AC/DC Channel) or it could have tribute shows where it plays all the songs from an album consecutively. Also, users of the service could be more interactive in terms of social media, and could treat the music service as its own mp3 player – where the user can rewind, play and pause a song or album as often as it wants, as many times as it wants. Yes, there are licensing restrictions that apply to these actions when a company does not do the direct licensing, which takes longer than simply doing a compulsory or statutory license. Also, direct licensing means Apple Inc. (NASDAQ:AAPL) can offer an up-front fee for the license to music, rather than paying more progressively as the service gains more users – something that can be very cost-prohibitive for Apple Inc. (NASDAQ:AAPL) in the long run.

Working directly with the labels is a longer, more arduous process for Apple Inc. (NASDAQ:AAPL), but if it makes for an easy, highly interactive, and free-of-charge service for users, then it would be worth it for the company – and may generate a stable cost basis and revenue stream (through advertising) for investors in Apple Inc. (AAPL) stock, like billionaire fund manager David Einhorn of Greenlight Capital.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!