Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Fewer stores, more Bash: TFG's online pivot gathers pace

      Fewer stores, more Bash: TFG’s online pivot gathers pace

      6 November 2026
      Tesla pulls the plug on the Cybertruck

      Tesla pulls the plug on the Cybertruck

      6 November 2026
      AA boss gives South Africa's car industry five years - Bobby Ramagwede

      AA boss gives South Africa’s car industry five years

      6 November 2026
      AI's black box may not be so black after all

      AI’s black box may not be so black after all

      6 November 2026
      Big wind farms drive a surge in private power registrations

      Big wind farms drive a surge in private power registrations

      6 November 2026
    • World
      John Ternus faces first big test as Apple CEO - John Ternus

      John Ternus faces first big test as Apple CEO

      2 November 2026
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
    • In-depth
      Ducking hell: inside Apple's hidden list of words the iPhone won't suggest

      Ducking hell: inside Apple’s hidden list of words the iPhone won’t suggest

      6 November 2026
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
    • TCS
      TCS+ | Old Mutual's Celiwe Ross on leading people through AI - Old Mutual

      TCS+ | Old Mutual’s Celiwe Ross on leading people through AI

      6 November 2026
      TCS+ | How the Apple ecosystem drives productivity for SMEs - Sudesh Pillay iStore and Kevin McLennan

      TCS+ | How the Apple ecosystem drives productivity for SMEs

      6 November 2026
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
    • Opinion
      Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

      Icasa’s Sim rules need a privacy backstop

      5 November 2026
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Music labels need to fear Apple’s love for Jay Z

    Music labels need to fear Apple’s love for Jay Z

    By Agency Staff1 July 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    apple-music-640

    The different factions of the music industry — artists, labels, agents and publishers — rarely agree on anything. But on one thing they are united: streaming services are the future.

    Apple Music, Spotify and their rivals allow users to listen to everything from Kanye West to Mozart at a click of a button — all for free, if they agree to advertising breaks, or for a small monthly subscription.

    So a Wall Street Journal report on Thursday that Apple had held early talks to buy Tidal — the high-end streaming service started by rapper Jay Z — will send shivers through the industry.

    If the deal happens, it would allow Apple to juice its year-old music-streaming service with exclusive releases from stars like Beyonce and Rihanna. It would cement its place as the second-biggest player after Spotify, and help grow subscription revenue just as hardware sales are slowing.

    More importantly for the labels, it’s likely to trigger the long-expected consolidation of the smaller streaming services that have struggled to make the economics of the business work, leaving Spotify and Apple as the dominant forces.

    Such a shakeout would hurt companies like Vivendi’s Universal Music Group, Sony and Warner Music by reducing the number of customers to whom they can license their content. They need streaming to grow as demand for downloaded tracks dwindles. And two dominant customers will have greater negotiating power over the labels.

    It’s easy to make fun of Tidal — it started out charging $19,99, or more than twice its rivals — before introducing a cheaper service at $9,99. It’s burned through three CEOs since its “blingy” launch event 15 months ago. But it has shown the value of big-bang exclusives, and it offers high-resolution audio for music purists, too.

    Nevertheless, a purchase by Apple shouldn’t be taken as a sign that Tidal or rivals such as Germany’s Soundcloud and France’s Deezer are in rude health.

    The licensing fees streamers have to pay are high — and not enough people are moving from the free to paid services. Spotify pays out some 70% of revenue in licensing fees to labels and Deezer pulled an initial public offering last year precisely because those fees spooked investors.

    Apple isn’t going to be the buyer of last resort for all the also-rans. Facebook and Twitter (which recently invested $70m in Soundcloud) could prove saviours to some, but others risk being left to wither.

    The music labels have a second reason to be wary of Apple’s ambitions. Lately the tech giant has been acting a lot like a content company and creeping into the labels’ turf. Stars like Drake and the Weeknd have recently had music videos financed by Apple, and it also paid for Taylor Swift’s tour movie. Traditionally, the labels would have led such projects, but they can no longer afford to make big-budget videos for top stars.

    And Apple isn’t just betting on established stars. It recently introduced the public to a little-known artist called Chance the Rapper, who surfed the streaming publicity blitz to hit the US Billboard charts without ever releasing an album.

    Even though it would never admit it, Apple’s frenzy of activity in this area could yet make it the great record label of the modern age.  — (c) 2016 Bloomberg LP

    • An earlier version omitted Tidal’s lower-priced service and mischaracterised the size of its catalogue
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Apple Apple Music Beyonce Deezer Facebook Jay-Z Sony SoundCloud Spotify Tidal Twitter Universal Universal Music Group Warner Music
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBMW self-driving car on the road in five years
    Next Article The real story behind Microsoft’s LinkedIn deal

    Related Posts

    Ducking hell: inside Apple's hidden list of words the iPhone won't suggest

    Ducking hell: inside Apple’s hidden list of words the iPhone won’t suggest

    6 November 2026
    The memory boom making Samsung rich is now squeezing Apple - John Ternus

    The memory boom making Samsung rich is now squeezing Apple

    3 November 2026
    John Ternus faces first big test as Apple CEO - John Ternus

    John Ternus faces first big test as Apple CEO

    2 November 2026
    Company News
    XLink brings dual-network resilience to eSim

    XLink brings dual-network resilience to eSim

    6 November 2026
    CambriLearn parents can now ask AI whether their child went to class

    CambriLearn parents can now ask AI whether their child went to class

    6 November 2026
    'There was hunger for alternatives': PSET launches at Purcon 2026 - Ebenezer Smith

    ‘There was hunger for alternatives’: PSET launches at Purcon 2026

    6 November 2026
    Opinion
    Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

    Icasa’s Sim rules need a privacy backstop

    5 November 2026
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Fewer stores, more Bash: TFG's online pivot gathers pace

    Fewer stores, more Bash: TFG’s online pivot gathers pace

    6 November 2026
    Tesla pulls the plug on the Cybertruck

    Tesla pulls the plug on the Cybertruck

    6 November 2026
    AA boss gives South Africa's car industry five years - Bobby Ramagwede

    AA boss gives South Africa’s car industry five years

    6 November 2026
    AI's black box may not be so black after all

    AI’s black box may not be so black after all

    6 November 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter