Shark Tank’s O’Leary: Apple Music is a ‘giant nothing burger’

“‘Shark Tank’ investor Kevin O’Leary said on Tuesday that he wasn’t excited about Apple Music from an investor’s perspective,” Reem Nasr reports for CNBC.

Nasr reports, “‘To me the whole thing is a giant nothing burger. Who cares? Even if they owned all of the streaming companies with all the features, it wouldn’t make a difference to their income statement,’ he said in an interview on CNBC’s ‘Squawk Alley.'”

Nasr reports, “‘Show me moves that protect and grow my dividend in Apple,’ he said. ‘This is not going to be material while I’m alive.'”

Read more in the full article here.

MacDailyNews Take: “Oh, the myopicity!” we exclaim in a chorus of our best Herb Morrison impressions.

It’s the ecosystem, stupid.

The ecosystem sells the devices, stupid.

The device sales fuel your beloved dividends, stupid.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

SEE ALSO:

Something about Apple Music betraying Apple’s brilliance by ignoring ‘The Harry Potter Theory of Marketing’ or some such nonsense – June 9, 2015
Bob Lefsetz on Apple Music: What team is Jimmy Iovine on? – June 9, 2015
Apple Music’s huge advantage over Spotify – June 9, 2015
Apple Music is a major mess and it won’t beat Spotify or something – June 9, 2015
When Apple Music arrives, what happens to iTunes Match? – June 9, 2015
What Apple Music says about how Apple views musicians – June 8, 2015
Apple’s revolutionary Apple Music just might prove its skeptics wrong – June 8, 2015
Apple unveils revolutionary Apple Music service – June 8, 2015

46 Comments

    1. Why Android and Windows? How obvious does it have to be? They get the music, they start to like Apple, and like so many of us over the years, they are hooked. Their next purchase is Apple. MacDaily nailed this one.

      1. My nephew brought home an iPod at Christmas. I said what is that? I listen to one song and while listening to the second, I ordered one online. When my Razor phone broke, I knew the iPod worked well, so I got a 3G iPhone. That worked so well, on day one I got an iPad. Windows continually screwed up so when I saw Parallels doing 90% of what I needed, I bought an iMac. Now, I run one needed windows app in “coherence mode” and my windows exposure is minimal. I’ll NEVER spend another dime on a Microsoft product again. I’ll never have a phone that isn’t Apple. That’s dividends for you.
        Music? I spend $200 a year on iTunes. Haven’t bought a cd since the iPod. Never spent a dime on music anywhere else online.

      1. Yep, this is all about keeping the music companies happy and not giving any other company a big enough opportunity to challenge Apple as the hip company with kids.

        As long as Apple’s service is good enough to prevent someone else from being dominate in music, that’s enough for Apple. They don’t need to control that part of the market. But keeping the record companies happy is hard. I bet they forced Apple to make it available on Android to put pressure on Google to make a good deal.

        1. No doubt part of the early conversation was that Apple’s addressable market would always be smaller than Spotify’s and Pandora, which are on multiple platforms, so Apple had to fix that.

    2. Why Windows and Android versions, Fear of Law Suits.
      Plus, why not pickup and extra 10, before microsoft does.
      microsoft is deploying to linux, OS X, iOS, Android OS…
      “microsoft everywhere!”, seems to be new battle cry out of redmond.
      by the way:
      el capitan is not a cool os name, this is truly sad, rather call it eleven.

  1. I really hate that Greedy mentality – I love it when Apple does something that is good for the consumer rather than thinking about the bottom line. – I still think that they will make a tone of money off of this especially since people typically don’t buy music any more. I do hope that the artist are being paid fairly for this..

    1. These greedy investors are real pricks. Apple doesn’t really need these people at all. They’re like leeches. Apple never depended on these pricks to grow to the size it has. I honestly never knew companies were built for the sole reason to please investors. It used to be enough that a company was profitable to please investors. If these guys think Apple sucks then why does Amazon, a company that barely makes any profits at all please investors so much.

      Is Apple really only supposed to do things that improve the bottom line for just a few investors? I would think the millions of consumers they please would be far more important than just a few greedy pricks. That kind thinking is really too selfish. He’s only concerned about himself. Apple Music may not pull in a ton of revenue but it’s still filling in some empty spots. I wonder what O’Leary is expecting Apple to do to duplicate iPhone revenue. These investors that Apple attracts prove themselves to be real jackasses.

      1. You’re using the word ‘investors’, when what I think you should be saying is ‘speculators’. A speculator is pre-occupied with the short term and wants to see instant improvements, on the other hand an investor is looking longer term and understands that sometimes it’s necessary to do things that will be a slow burn initially, but will make a very positive contribution to the success of the business in the future.

  2. MacDailyNews Take: “Oh, the myopicity!” we exclaim in a chorus of our best Herb Morrison impressions.

    It’s the ecosystem, stupid.
    No, its the stupid music system

    The ecosystem sells the devices, stupid.
    The music system is still stupid.

    The device sales fuel your beloved dividends, stupid.
    So, stop wasting time with Iovine and the bullshyters and fuel device sales, numbskull

  3. O’Leary has a reputation for being shortsighted and greedy.
    This is going to have a giant Halo effect – yes, even with Android and Win people and will drive people to Apple. Sales will increase, user loyalty will increase. O’Leary will lose – and remain an egghole forever.

    1. Just remember O’Leary got rich selling crappy CD-Rom games for PCs at Staples in the 90s.

      Actually that didn’t make him rich. It barely generated any revenue at all. He got rich when a dumber company than his bought him out because “the future is all computers n stuff”.

  4. iTunes on Windows introduced me to Apple. Now I have 4 Macs, 4 Apple TVs, two iPads, an Apple Watch, an Airport Extreme an Airport Express

    Apple Music on Android is far overdue. But this fall, will be complaining about how dominant Apple is. Apple Music for Android plus the Move to iOS app is gonna KO Samsung

  5. I wonder if he would say the same thing about all of Google’s “free services”. Look there is always downward pressure on hardware margins, by cultivating services like this it helps to offset that pressure. Apple is going to be worth a trillion dollars soon, how much is this guy worth?

    1. I’m guessing it’s because there’s no money in trashing Google. The stock doesn’t react, and the media doesn’t care because there’s less click value.

  6. Hmmm I said the same thing when the iPod came out and look where it has taken Apple over the past 10+ years! I feel the same way about Apple Music so here’s to hoping I’m wrong again!

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.