Sanat, indeed, I fully agree. Than what material value does Apple Music on Echo offer Apple. It is a net loss and does not expand “services” value significantly and does not expand material hardware sales. There is ample free or less costly music on Echo. It all sounds the same.
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Replying to @BrianRoemmele @sanatpatel
I think the risk is to their incoming Video service. If people move away from Apple Music, they are much less likely to buy Apple Video.
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Replying to @jdanielcook @sanatpatel
Daniel, remember, just about all Echo users get free Prime music from Amazon. How much true value is Apple gaining for users, especially if every song they stream cost Apple. Thus it is a net loss not really a net gain.
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Replying to @BrianRoemmele @sanatpatel
Does Apple lose value if their customer cancels Music for another service? I think they are seeing more people move into Amazon's ecosystem for both Video and Music. The Prime selection isn't that large so some are probably switching.
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I don't think this will lead to any more users, and I agree Apple would lose money if it did. I think their hope is in the Video service covering that possible loss. For it to thrive it must be everywhere.
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Replying to @jdanielcook @sanatpatel
Daniel, indeed. I agree. Aquagmire that I think requires a much longer vision. If your content is not exclusive to your platform, even if Apple Acquires Disney, etc it would still require the loss. The reason for the movie and music is for hardware sales. Only way maths work here
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Replying to @BrianRoemmele @sanatpatel
Which hardware? IPhone and AirPods or specifically HomePod?
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Replying to @jdanielcook @sanatpatel
Daniel, all of the above. Services are ultimately a commodity. Ingenuity is a reality. Apple must not trade in a commodity space. There is no end win.
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Replying to @BrianRoemmele @sanatpatel
Video and Music are but not Voice or user data (email, calendar, etc.). I do question how Video will work out for them as it is a commodity that they cannot use to sell specific hardware. Their cost will be higher than competition. AWS & Google.
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Specifically because Music is a commodity it doesn't work to sell a device like the HomePod.
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Daniel, exactly, why if you and I were at Apple we would have body blocked the, from calling it a smart speaker or music device. We would have got a pirate flag and a few good folks and said, let’s make an Apple #VoiceFirst device.
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