An interesting report hit the Financial Times today, indicating that Apple is working with all of the major music labels on a way to boost album sales. But the report is confusing in a number of regards, and is propelling new rumors that Apple’s new large form iPod touch, or tablet (which itself is naturally still a rumor, though an increasingly likely one), could be rushed to be out in time for the holidays — this year.
But let’s take a step back for a second here. FT seems to go back and forth between tying this new Apple/music label effort, which is apparently code-named “Cocktail”, with this new device. At first, it indicates that it’s separate (emphasis mine):
The talks come as Apple is separately racing to offer a portable, full-featured, tablet-sized computer in time for the Christmas shopping season, in what the entertainment industry hopes will be a new revolution.
But it goes on to say (emphasis mine):
The device could be launched alongside the new content deals, including those aimed at stimulating sales of CD-length music, according to people briefed on the project.
Okay, except that it then goes on to say (emphasis mine):
The labels and Apple are working towards a September launch date for the project, which aims to boost interest in albums by bundling liner notes and video clips with the music.
So the Financial Times seems to be both suggesting that Apple’s tablet is closely tied to this new Cocktail project, which could launch in September. Or, the tablet is a separate project and will launch in time for the holiday shopping season (typically late November). Of course, reports last week had Apple working hard just to get the tablet device done for Q1 2010. So what gives?
Here’s what it sounds like is happening. The music industry people that FT talked to are excited about the prospects of their new project with Apple, but they’re even more excited about this new tablet device. As I’m reading it, project Cocktail sounds pretty ho-hum by itself (um, liner notes as an incentive, again, really?), but this is the key part:
Consumers would be able to play songs directly from the interactive book without clicking back into Apple’s iTunes software, executives said.
So it sounds like project Cocktail could offer special functionality that may be optimized for this tablet (and perhaps the iPhone and iPod touch). And so that’s why they’re probably talking up the new device, which they may or may not have even seen, as is indicated by the FT report still not knowing the actual screen size.
All of this is also interesting because it’s Apple apparently working closely with the record labels — two sides which have had plenty of disagreements in the past. And this seems to be all about album sales, something which you could easily argue that iTunes is responsible for hurting with its per-track structure.
But the labels just recently got their way and forced Apple to up the price of many songs on iTunes. At the same time, album prices largely stayed the same (though some went up). So now it appears that the labels also want to make more off of albums, by not only giving users a reason to buy them, but I would imagine also charging more for these special Cocktail albums.
But will it work? From the way this story reads, it seems like it may be contingent on this new Apple device. I don’t know about you, but I could care less about liner notes that the albums on iTunes already have. If anything, I’d prefer not to get them, as they just clutter up my music library. And iTunes already has plenty of “special” versions of albums that have bonus music videos and other goodies. So unless this story is about nothing, it would seem that FT just isn’t describing Cocktail very well for the most part, and instead we should look to the description of it as a highly interactive experience for music.
But then the report jumps back to being about the tablet — and it reads like the device will matter more for movies, than music:
The entertainment industry is hoping that Apple, which revolutionised the markets for music players and phones, can do it again with the new device.
“It’s going to be fabulous for watching movies,” said one entertainment executive.
Or maybe books:
Book publishers have been in talks with Apple and are optimistic about their services being offered with the new computer, which could provide an alternative to Amazon’s Kindle.
In all likelihood, Apple is probably targeting all three (music, movies and books) with the new device, but it’s hard to follow here.
Most importantly, how likely is it that we’re going to see such a device in just a couple of months? Probably not too likely.
[photos: flickr/ginsnob and TECHcocktail]
And what about streaming/RT content. Apple and the networks could clean up here!
Assuming the network could support that kind of bandwidth use on a wide scale. I think it’d be awesome if it did, but I’m kinda pessimistic about any carrier being able to keep up with millions of what sounds like it would basically amount to big-screen iPhones that have an increase in bandwidth use proportional to the increase in screen size. (In the near future anyway, if LTE turns out to be as fast as Verizon is promising (60Mbps?) the issue might melt away.)
Perhaps launching on multiple networks would make the most sense if bandwidth was the only consideration. Of course, that brings up the issue of multiple models with different network chips….
This tablet, is it really coming? Definitely not possible unless Apple has already done it and is keeping it in store. If it is going to be a bigger iPhone, it is never going to work. If it has to work and be a wow-product, think, Apple should do more groundwork. We do not want another iPhone in tablet form. Yes, bandwidth is also a thing of concern.
you just never know
Way to copy the Zune HD Apple!! Google it to see what I mean. Apple is always copying Microsoft and Zune. How else would you explain the integration of Windows in Apples nowadays?
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Archos 9 Tablet will be available within a couple months at $499 running Windows7 http://www.yout...h?v=6cTfXgbuenk , it’d be much better value than any apple tablet. So would a crunchpad.
Unless of course, Apple somehow managed to do a correct component choice, using for their 10″ touchscreens somehow the Pixel Qi’s 3Qi screens http://www.yout...Q5Kl6w#t=06m06s
But if the $800 rumors are right, that’s still ridiculously expensive. Just cause Apple manages to sell the iphone at $500 to carriers and make 300% profit per iphone, that should not let apple overprice any other thing that they do, even though that’s the core of how apple does business. Overpricing stuff.
Windows 7 is the grim reaper of whatever this tablet device Apple has going on. I think after people got duped with the iPhone (AT&T expensive poor services) they will not be so quick to jump on this $800 device outside of the core fanbase.
If tablets can be delivered such as the Archos at around $400 with Windows 7 playing HD video… Apple losses here.
Windows/Vista7 is the Grim reaper of what Apple has going on eh. Good luck with that one.
As for AT&T, my service is just great in Southern California.
I suspect just like the iPhone, a tablet from Apple will sell like hot cakes and not just as you say with the “core fanbase.”
Who got “duped” on the iPhone? It’s customer satisfaction rate the highest in the phone industry!
AT&T != iPhone.
well said
I can’t remember the quote, but someone (maybe Kevin Smith) once talked about the importance of color packaging. One of the reasons we buy DVDs is for that glossy cover.
I think Apple is smart to try to replicate that user experience in a newer way. I still won’t use iTunes, but it gives an added value to those users.
I never understood why Apple hasn’t made iTunes support pushing voluminous album art (think old LP’s) and the deep box sets aimed at collectors and fans that want more — digitally.
It’s the extras on artist DVD’s that draw people to spend more to have it vs. a mere CD. It’s the gorgeous art that draws a lot of folks to make a connection to the music as a total package.
Maybe it goes back to the David Lynch iPhone dilemma of movies:
http://www.yout...h?v=wKiIroiCvZ0
Perhaps you can’t truly enjoy an album if you can’t feel the LP cover in your hands and flip through gorgeous art and (possibly) interactive easter eggs meant for the fan’s fan.
“It’s such a sadness” — DL
yeah have to embed that one, such a classic.
David Lynch says “get real”?
Haha, great clip.
People are dismissing this, but I agree that old LPs are a great example of visual art enhancing the listening experience that was lost in the age of cassettes and CDs and forgotten in the mp3 era (although music videos picked up some of the slack for a time). We shouldn’t dismiss the power of adding another sensory element – doesn’t the smell of popcorn add to the movie experience in some strange way, great music add to “video” games?
I don’t know that it will translate into sales, but there’s still opportunity to enrich the music experience. Interactive CD-ROMs and DVD-pack-ins were utter flops for the industry, but custom iTouch/iPhone album interfaces with interactive elements (e.g. animated album art, quick links to music videos and interactive art/games), if done unobtrusively, could make listening more interesting.
And then there’s the bottom line – if this is a proprietary Apple format (i.e. a “cocktail” of a lot of custom OSX APIs), this could be another lucrative hook into their ecosystem.
i still dont understand twin peaks.
Ok, so when is the music industry going to finally realize that music is becoming a public good? Patterns of consumption seem to suggest that people do not want to pay for it, and will do whatever it takes to not pay for it.
Why not build a model based on that? Live Nation 360 deals? Instead of having people pay for the songs (albums) have them pay for access the artists. Songs, t-shirts, exclusive streaming video / dvd’s, concerts, ringtones, instrumentals… Bundle it up!!
A public good?
I’m so sick of this “I deserve” attitude. Just because you don’t WANT to pay for something doesn’t mean you should have the RIGHT not to have it for free.
T-shirts sales, ringtones etc is all well and good for the latest teenage sensation but it won’t work for everyone. Stop being cheap and stop being a prick and stop being a thief.
I will say that a product has to have a perceived value. NIN Ghosts was interesting with the imagery and PDF booklet. Having such products could boost this value. Making it easy for people to buy music is also important.
This can be accomplished on other platforms too. Sadly, nobody but Apple has stepped into this space and offered compelling products. It looks as though Android may be our next step. Unfortunately, our model was similar, but Apple would not approve the applications. I believe that music will be sold as media products rather than as audio files in the future.
Seems that the music labels are missing the point! If music is spearheading towards becoming a public good, why not create models to capitalize on that?
what’s the point of this story?
Picking holes in an FT article; who cares?
If I want to read about business and finance I read the FT, if I want to read about technology I read other sources, including TC.
Who cares if the FT is confused and is reporting on confused music executives?
This story is on CNET, Engadget, and other sites. By tomorrow, it will undoubtedly be all over. Maybe you should just steer clear of tech sites.
MG, are you there?
I was wondering, a tablet for just playing music? For that format videos are not a better fit?
Here’s what Apple’s tablet computer could mean. http://bit.ly/AujCa
Maybe Apple will finally offer a subscription music/video/books option? Or, as said in the previous article on the “Apple Tablet”, maybe they’ll do something Amazon Kindle-esqe and build in special pricing into the device?
Apple is worried
Our model has been to embed video and art with music, and Apple shockingly will not approve the embedded music. But they will do so for their products! Lovely.
The ability to say push the music out of the album package and into the iTunes library would be a plus. But does music and art need iTunes. There may perhaps be another model here that is interesting.
Thanks for highlighting the contradictions in the FT report. Seems like most other sites are just repeating: “Apple tablet due in September!!!”
we need a subscription model such as 20 usd per month for any music /movie/ tv show streaming, download etc. That will attract people like me to sign up.
Apple is working on the Cocktail project w/ music labels in response to the ascendancy of streaming services such as Spotify, et al.
Speaking of which, their app is awaiting approval….
I you understand the release process at all in a hardware (or software) environment, you’d realize that a fall release is completely out of the question. The code would have to be gold, the h/w would have to be gold, the entire release package virtually complete and ready to ship. Someone would have leaked photos/specs of very advanced prototypes by now, and there would be folks in china (and quite a few in the US) with rtm versions of the box. There’s just no way, no how any of those milestones have been reached. They will be lucky to get it out in Q1.