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theGREATEST GIRAFFE FIGHT of ALL-TIMES!.For the tech giants, it’s worth taking this loss to be the ones doling music out.
But Apple and Google see their streaming music services much in the same way that Samsung sees its Jay-Z deal, says Evans. You don’t have to tell that to businesses like Pandora (P) and Spotify, which are bleeding cash and fighting tooth and nail to reduce their royalty payments. “It’s tough to make it work as a stand-alone business.” “Music, increasingly, has to be part of a broader strategy,” says Benedict Evans of Enders Analysis. Phone carriers are also looking to music as a way to promote their networks MetroPCS now offers to bundle subscriptions to Rhapsody, the streaming service, into customers’ monthly plans. This explains why Apple and Google (GOOG) have been keen to get into the distinctly non-lucrative world of streaming music. But distributing digital content isn’t about making money. (Microsoft (MSFT) is paying developers directly to make apps for its platform in an attempt to catch up.) Apps have the advantage of being a profitable business, because the companies that run the platforms take a cut of the revenue from sales. The richness of Apple’s (AAPL) app store gave it a huge advantage over competing smartphone platforms in the early days of Android. (He wouldn’t have been Steve Jobs’s first choice, though.) Also, as we’ve pointed out in the past, Jay-Z and Samsung just seem like a good fit.Ĭompanies that peddle mobile devices are all after ways to offer exclusive content. But at this point there are few artists more iconic than Jay-Z. This isn’t the first time Samsung has attempted to lure people toward its phones with the promise of music. Instead, it’s hoping that the next time someone’s contract is up, she’ll remember that Jay-Z exclusives are the kind of thing she can expect to hold over her iPhone-toting friends if she buys a Galaxy phone. People primarily buy smartphones about once every two years on regimented schedules, so Samsung isn’t going to drive many sales from this specific promotion.