“We are hearing some chatter this morning about Apple Computer (AAPL) that we can’t confirm, but found interesting nonetheless. The rumor is that Disney (DIS) could buy a stake in AAPL’s iTunes, which could then be a first step towards an iTunes IPO. This is a new one to us, and this type of AAPL/DIS rumor could be motivated by the fact that Steve Jobs will be on the DIS board following its acquisition of PIXR. Some of the initial feedback we heard on this was skeptical, so again, just passing this one along,” Briefing.com reports.
Full article (paid subscription required) here.
[Thanks to MacDailyNews reader “J Alex” for the heads up.]
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I wouldn’t have thought Steve Jobs would sell Pixar to Disney, so now I believe anything is possible.
http://musobs.blogspot.com/
I wonder how that would work…
I just want AAPL to go up!!
Next Disney buys Apple!!!!
because it would be STUPID. iTunes works because different content providers feel it is a neutral/fair platform for their sales. The moment it looks like iTunes is under the control of one of them, the others will pull their products. Why would Apple take that chance? What’s in it for Apple?
Jake
Yeah right! SJ would never do that!
…unless…
Mac Mini Mouse?
someone with a degree in business and stock market ology, could you please explain this in more detail? How does Disney buying iTunes give it an IPO? Disney buys a portion of Apple, is it just the iTunes music store, or it the music division? It seems stupid for apple to sell the whole music division, where iPods live but if that’s the way it’s divided up now does that mean that’s the way it has to stay divided if it goes to Disney? So then Disney owns the iTMS orthe music division previously known as Apple’s, so then they set it up as a subsidiary and sell off 49% of the stock because Apple and Disney don’t have enough cash? This isn’t making any sense to me.
It makes even less sense when one considers that no one can do as much with the content store as Apple can. I don’t think it is all worked out to point that they can just hand it over to a content provider to fill it up. Plus what happens to the content from other studios? Will they want to play ball with the Disney iTunes store or will this lock iPods into a store that Disney controls? That would be a worthwhile lawsuit. Would they have to open the iPod up by licensing Fairplay?
I see no benefit to Apple in in this, unless Disney pays far more than the division is currently worth or Disney is going to load it up with as much of their content as possible right away and still allow other content to get in easily and effectively, which seems like a lot to ask of a corporation that in some ways used to have a monopoly, and to a lesser extent still does.
There are just so many questions. Anyone have any answers? Anyone have any other questions?
Jay, the thing is that for Disney to purchase a stake in the iTunes store (and not simply the whole of Apple, which they can do at any time) Apple would need to incorporate the store as its own entity (even if it is still under the control of Apple). Incorporation is necessary for an IPO, so it could be seen as a first step. A public sale could also be a good way for the investors (Disney and Apple) to get a large return on their investment.
Maybe with a studio involved, it would let iTunes work around the whole Apple Records issue and start signing artists directly. Just a thought.
Wonder if their are investors other than Disney (like Universal or Warner)?
An IPO would mean Apple owns x% of iTunes and the public at large can buy shares in y% of it.
Now, put this rumor in the context of the Apple Corps lawsuit, ‘cuz that’s the only thing that makes this rumor make sense.
So much for the idea that DRM is in the music ONLY because the RIAA wanted it. No Steve Jobs has found out that DRM is not about protecting content, its about vendor lock-in.
I, for one, no longer purchase music through iTunes. I will not own any more DRM laced music. If CD’s go the way of the dodo bird, then I’ll just listen to what I already have.
Jeff, that attitude is just based on ignorance. Been buying iTunes since day one and never ran into and DRM limitations. I burn my disks, I can re-rip them if I choose. The DRM is there just to keep the casual bootlegger from sharing their files.
I admire the spirit, but listen to yourself. Besides, there are always ways around DRM if you set your mind to it.
Kate
I think, if this happens, it has something to do with Apple Records suing Apple computer for getting into the music business…. think, if Disney buys iTunes and spins it off from Apple, who do you think will run it? As far as I know there is nothing that says Mr. Jobs can’t run a music empire…
“[…] put this rumor in the context of the Apple Corps lawsuit, ‘cuz that’s the only thing that makes this rumor make sense.”
Agreed. Apple may have some inkling that they’re going to lose that one and are preparing for the post-lawsuit world…
The Beatles case comes to court at the end of next month. If things don’t go our way, our hand may be forced. Splitting the Mac and music businesses into two companies is one option; another is to sell the iTMS.
erm…NOOOOOOOOOOOO!
Macromancer,
Just because you haven’t run into any limitations with DRM doesn’t mean its ok. You probably run a Mac, don’t you? Well, if it wasn’t about vendor lock-in, you would be able to play your purchased music on any player on any OS. Just be glad they gave you the right to rip your purchased music to CD. What if they didn’t? Sort of like what they are doing with video. Its got the same DRM in it as the music. But they aren’t letting you copy it. So guess what? Vendor lock-in. Can you play that video on anything other than iTunes? Nope. Can’t burn it to a CD or DVD. Can’t play it on a Linux box. Can’t play it on a computer without iTunes. Thats the pure definition of vendor lock-in. Its not about protecting content. Wake up and smell the coffee.
If the RIAA had not insisted on DRM, then the music I purchased from iTunes would be able to play on any music player that supports AAC. And iTunes would then be on a level playing field with every other online music store. The quality of the store and its content would dictate who would be the best. It doesn’t matter that iTMS is the BEST store out there. What does matter is because of the Fairplay DRM, I’m locked into using it on only one device. Vendor lock-in. Why do you think Windows doesn’t make WMV3 available on the Mac. If the DRM is all about protecting content, don’t you think there would be a Windows Media Player capable of playing WMV3 on the Mac? The DRM isn’t about protecting the content, its about keeping it on Windows.
It’s probably just an “Exclusives” contract deal.
it indeed this is true, i see this as a precursor to true Open market and competion.
iTunes will have to cut the tie with Apple and make themselves more open to other vendors. Which means also they will have to license Fairplay.
They will compete against the likes of Google, Yahoo, MTV, Netflix not only for the music and video market but also for the content market. This could possibly even mean going after the wireless market.
lots of possibilities.
It would also open the door for one of those screwed up pricing structures.
There are plenty of upsides to this, but I think it will be more about the content providers and creaters being able to jack us around.
Variable pricing, transformation to subscription service, etc. Everything most of us don’t want to see.
mw: designed as in iTunes was designed with the user in mind, but if Disney buys a stake, no more.
Instead of the arguments for and against iTunes, DRM, whatever here, contact RIAA and bitch and threaten them. Put the blame and responsibility for the ways things where it really belongs; at their feet (or up their ass).
Disney owns ABC and ESPN, Miramax and Touchstone Films. I don’t see the problem there — do people refuse to watch ESPN because of Disney ownership?
Certainly I like the existing iTunes paradigm just the way it is, with limited spam, simple pricing and wonderful interface. Anything to undermine that is flawed, but this unsubstantiated rumor is not there yet.
NO WAY!
The other content creators and distibuters will jump ship in a heart beat.
Apple needs to keep the itunes>ipod>mac cycle going.
They don’t need cash.
This is a way for Apple to get out of the potential monopoly business, open up iTunes, Apple can license things to others, etc, etc, etc.
It´s a workable idea.
Steve seems to have decided to turn Apple into a gadget – media delivering company ala´ Sony.
It is not too far fetched to see Apple set up another spinoff business of iPods AND sell its computer business to Intel to compete against Microsoft, who is now in the hardware business. (Microsoft is also testing a cheap-o computer in Brazil for the masses.) Intel would then license OSX to Dell, Sony, etc.