Apple Is Buying Taylor Swift’s Record Label For $250M [Report], And It’s Not As Crazy As It Sounds
Apple is buying Taylor Swift's record label Big Machine for $250 million. At least that's the report that's surfaced from Hits Daily Double, an old school music industry site that still has connections inside the major labels. Apple has denied the report, which could mean anything. But the idea of Apple investing $250 million or more in a record label is not a far fetched as it might sound. Here are four reasons why:
1) Exclusives – If the only (or at least the first) place you can stream or buy music for your favorite artist is iTunes, Spotify and everyone else is instantly at a disadvantage. U2, The Beatles and Coldplay already have cosy relationships with Apple.
3) Executives – Before joining Apple's team, Jimmy Iovine was one of the most successful music executives in modern times; and new Cupertino staffers Dr. Dre, Ian Rogers and Trent Reznor each add to the mix.
4) Equity – Apple buying a record label would upset other labels, right? Actually, the major labels can't cry foul. After all, they've taken significant equity positions Apple's music streaming competitor Spotify, were much of the cash behind Vevo and continue to invest in other music tech companies.