Whoops! Sony Music CEO confirms Apple's new music streaming service
Morris made the pre-announcement Sunday while speaking at the Midem music industry conference in Cannes, France. Morris didn't divulge any specifics on pricing and such, but VentureBeat notes that Morris "much prefers paid streaming services to ad-supported ones from a financial perspective."
Morris also says he considers Apple's entry into music streaming to be a seminal moment for streaming services, thanks in large part to Apple's vast financial resources and large existing customer base.
"Spotify has never really advertised because it's never been profitable," Morris said, as quoted by VentureBeat. "My guess is that Apple will promote this like crazy and I think that will have a halo effect on the streaming business."
Why this matters: Although Apple's iTunes Store was the first truly successful legal digital music marketplace, the company has lost its edge in recent years as music consumption patterns have changed and streaming services like Pandora and Spotify have gained popularity. As a result, Apple has been playing from behind for a number of years. For instance, Apple's iTunes Radio service launched in late 2013, years after Pandora achieved mainstream success.
Time will tell how well Apple's new service will perform, but as Morris notes, Apple has a huge financial leg up on the competition and a massive user base, both of which should help it firmly establish its new service.