Apple's iconic Fifth Avenue store in New York City will soon close for renovations and temporarily relocate to the soon-to-be-vacated FAO Schwarz toy store in the General Motors Building, according to the Associated Press. The report does not offer a timeline for the renovation plans.
Apple's iconic Fifth Avenue store, left, and nearby FAO Schwarz store, far right (Flickr)
FAO Schwarz, the oldest toy store in the United States, is set to vacate its ground-level store in the General Motors Building in July 2015 due to the rising cost of rent. The storefront is located just steps away from the current Apple Store at 58th Street and Fifth Avenue, so the temporary move should be rather seamless.
Apple reportedly plans to renovate about 20 existing retail stores in the United States to accommodate for increased foot traffic, with many stores set to double in size. Apple's flagship Regent Street store in United Kingdom is among the stores that will be renovated, while San Francisco's Union Square store will be relocated.
Apple manufacturing partner Foxconn plans to travel to India and explore possible locations to reopen production facilities in the country, in a move that could bring iPhone assembly and potentially lower prices to the emerging market. Reuters reports that Foxconn could benefit from lower production costs in India as wages continue to increase in China, where the majority of its operations are currently based.
"Foxconn is sending a delegation of their officers to scout for locations in a month's time," Subhash Desai, Industries Minister of India's western state Maharashtra, told Reuters. The report claims Foxconn plans to build 10-12 facilities in India, such as factories and data centers, by 2020, although the Taiwan-based company has not provided any further details about its plans.
The return of Foxconn would provide an economic boost for India, which continues to rival neighboring China in the technology sector. The manufacturing company was forced to close shop in India last year after losing client Nokia, but now eyes a return to the country with plans to manufacture iPhones, iPads and iPods.
"A return of Foxconn -- which was forced to shut up shop in India last year after client Nokia closed -- would be a major victory for India, which badly needs to turn its tech boom into a manufacturing and employment boost.
India, under Prime Minister Narendra Modi, has sought to reboot manufacturing, but the country is yet to rival China, particularly in technology where most factories will likely be assembly units to begin with."
Foxconn assembles iPhones, iPads and a number of other products for Apple, one of its main clients, and also serves as a manufacturing partner with other consumer electronics makers such as Xiaomi, Acer and Sony. Its main competitors include Taiwanese Semiconductor Manufacturing Company (TSMC) and Quanta Computer.
Apple Music will cost $9.99 per month in the United States after a three-month free trial period, but the service may have lower pricing elsewhere. A sign-up menu for Apple Music that started appearing yesterday for some developers and public beta testers on iOS 8.4 beta 4 reveals that the subscription-based streaming music service could cost as little as $2 to $3 per month in countries such as India and Russia.
A pair of separate reports by Technology Personalized and Russian-language tech blog TJournal share screenshots that suggest an Apple Music individual subscription could cost Rs 120 per month (~$2 USD) in India and 169 rubles per month (~$3 USD) in Russia. While the lower prices in these countries are not confirmed beyond these screenshots, they would be in line with similar pricing offered by rivals such as Rdio, Guvera and Gaana.
Apple Music was announced earlier this week as a streaming music service, live global radio station and social platform for artists to connect with fans. The subscription-based service will be available for a monthly fee after a three-month free trial for iPhone, iPad, iPod touch, Mac and PC. Apple TV and Android versions of the service will be available in the fall. Apple Music launches June 30 on iOS 8.4 and iTunes.
A few retail employees at Apple Store locations have complained directly to Apple CEO Tim Cook, saying the company's policy of checking its employees' bags for security reasons was "embarrassing and demeaning." The new record comes from a court filing and is part of a 2013 lawsuit claiming the Cupertino company should compensate its employees for the time the bag checks take (via Reuters).
One of the workers in the lawsuit sent an email to Cook back in 2012, claiming that Apple retail store managers "are required to treat 'valued' employees as criminals." In the filing it was said that Cook then forwarded the complaint to both top retail and human resources executives asking, "Is this true?" No responses to Cook's inquiry were documented within the filing made public this week.
In the original lawsuit, which is seeking class action status after being dismissed last year, Amanda Friekin and Dean Pelle claimed that these bag checks were mandatory every time a sales rep left the store and were meant to discourage theft. In one of the original emails sent to Cook in 2012, the employee simply claims Apple's strict policy breeds an environment of distrust amongst its otherwise loyal workers.
In the 2012 email to Cook, with a subject line "Fearless Feedback from Apple Retail Specialist," the employee said Apple's policy implies the company does not trust its workers.
"These procedures are often performed in front of gawking customers," the employee wrote, adding that workers deserve to be treated with the same respect that Apple shows customers.
As Reuters points out, in a Supreme Court ruling last December, Amazon won out over a group of its employees who sued the company for monetary compensation in the time they spent going through security checks at the end of their shifts. The Supreme Court's ruling erred on Amazon's side because it found these security checks were not a "principal activity" of the employees' job description.
A hearing in the lawsuit is set for a July 2 date in court.
Apple earlier this week announced that Toronto will be one of ten major cities in North America that will support Apple Maps transit directions on iOS 9 in the fall, but after early testing we can confirm that the new routing option for bus, subway, light rail, train and ferry directions will actually extend well beyond the city limits and TTC to cover much of the Greater Toronto Area and Southern Ontario.
Apple Maps transit directions on iOS 9 beta working in Waterloo and Barrie
A thread posted on Reddit first pointed towards the Apple Maps transit acknowledgments page, which has been updated with several Canadian transit operators outside of Toronto, but we dug further and found that Apple Maps transit directions work in even more cities. We were able to receive bus, subway, light rail or train directions between over a dozen Canadian cities and towns throughout Southern Ontario listed below.
List of Supported Cities:
Mississauga: MiWay bus directions where service is provided in Mississauga. GO Transit bus and train directions also available for traveling between Mississauga and other Apple Maps-supported cities within the Greater Toronto Area and Southern Ontario.
Oakville: Oakville Transit bus directions where service is provided in Oakville. GO Transit bus and train directions also available for traveling between Oakville and other Apple Maps-supported cities within the Greater Toronto Area and Southern Ontario.
Brampton: Brampton Transit bus directions where service is provided in Brampton. GO Transit bus and train directions also available for traveling between Brampton and other Apple Maps-supported cities within the Greater Toronto Area and Southern Ontario.
York Region: York Region Transit (YRT) bus directions and Viva rapid transit directions where service is provided in Aurora, Markham, Newmarket, Richmond Hill, Vaughan and other areas within York Region. GO Transit bus and train directions also available for traveling between York Region and other Apple Maps-supported cities within the Greater Toronto Area and Southern Ontario. There are also directions for TTC routes operating between York Region and subway stations in Toronto.
City of Hamilton: Hamilton Street Railway (HSR) bus directions where service is provided in Hamilton, Ancaster, Dundas and Stoney Creek. GO Transit bus and train directions also available for traveling between Hamilton and other Apple Maps-supported cities within the Greater Toronto Area and Southern Ontario.
Burlington: Burlington Transit bus directions where service is provided in Burlington. GO Transit bus and train directions also available for traveling between Burlington and other Apple Maps-supported cities within the Greater Toronto Area and Southern Ontario.
Kitchener-Waterloo-Cambridge: Grand River Transit (GRT) bus directions where service is provided in Kitchener, Waterloo and Cambridge. GO Transit bus and train directions where service is provided for traveling between Kitchener-Waterloo-Cambridge and other Apple Maps-supported cities within the Greater Toronto Area and Southern Ontario.
Guelph: Guelph Transit bus directions where service is provided in Guelph. GO Transit bus and train directions also available for traveling between Guelph and other Apple Maps-supported cities within the Greater Toronto Area and Southern Ontario.
Niagara Region: Niagara Falls Transit, St. Catharines Transit, Welland Transit, Niagara Region Transit and WEGO bus directions where service is provided in Niagara Falls, St. Catharines, Welland and Niagara Region. GO Transit bus and train (summer only) directions where service is provided for traveling between Niagara Falls and other Apple Maps-supported cities within the Greater Toronto Area and Southern Ontario.
As of this afternoon, many developers and public beta testers running the latest iOS 8.4 beta are seeing popups for Apple's upcoming Apple Music service within the Music app.
When opening the app, there's a popup for Apple Music that prompts users to start a three month free trial. Tapping on that option leads to another screen that lets users choose either an individual plan for $9.99 for a family plan for $14.99, but there's no way to actually sign up for a plan. Choosing a plan simply grays out the option and does not allow users to progress further in the signup process.
These options have been showing up for some users since the latest iOS 8.4 beta was seeded yesterday morning, but many more users are now seeing signs of the Apple Music service as Apple begins to implement backend tools to support subscription signups at launch.
Apple Music will launch on June 30 as part of iOS 8.4, and it will be built into the Music app. The full Apple Music experience includes an on-demand streaming music service, the Beats 1 radio station, and Apple Connect, a social networking service connecting fans and artists.
With iOS 8, Apple introduced Continuity, a set of features that allow iOS devices and Macs to interface in new ways. One of the Continuity features allows the iPad and the Mac to receive both text messages and phone calls, so long as your devices, including your iPhone, are all on the same Wi-Fi network.
In iOS 9, accepting phone calls or text messages on your iPad or Mac routed from your iPhone is getting even better, with the addition of cellular support. With iOS 9, your iPhone no longer needs to be on the same network as your iPad or Mac for call forwarding to work.
That means an iPhone can continue to forward calls to a Mac or an iPad even when it's in an entirely different physical location. So, for example, if you forget your iPhone at home, you can continue to receive incoming calls on your Mac while at work, so long as your Mac is connected to a Wi-Fi network.
The feature is tied to Wi-Fi calling, and as noted by The Verge, T-Mobile is the first U.S. carrier to support cellular Continuity. In iOS 9, T-Mobile devices have Phone settings that can be toggled on to allow calls on other devices.
"Wi-Fi calling for other devices allows other devices signed into your iCloud account to make and receive calls using your carrier account even when your iPhone is not nearby," reads the description of the feature.
On phones from other carriers, this setting reads differently: "Use your iPhone cellular connection to make and receive calls on devices signed into your iCloud account when they are nearby and on Wi-Fi."
Developers running iOS 9 who use T-Mobile can access this feature immediately, and beta testers will receive access in July, when iOS 9 is provided to public beta testers. It is not known if other carriers will implement support for cellular Continuity before iOS 9 launches in the fall.
Apple earlier this week announced a new consolidated Apple Developer Program for iPhone, iPad, Mac, Apple Watch and Safari, combining the previously separate iOS, OS X and Safari Dev Programs into one for a single $99 annual fee. The change should place more emphasis on and increase the security of Safari extensions, but somedevelopers have voiced their frustrations about the new fee.
In particular, developers will now be required to pay $99 per year to distribute Safari extensions through the new Safari Extensions Gallery. Comparatively, the old standalone Safari Dev Program was free and did not charge developers a fee to distribute Safari extensions within or outside of the Safari Extensions Gallery. Chrome and other browsers also do not charge a fee to distribute extensions.
Reddit user honestbleeps shared the email Apple sent to Safari developers:
"Dear Developer,
As a creator of Safari Extensions, you’ve helped enrich the browsing experience for Safari users by taking advantage of development resources through the Safari Developer Program. This program is now part of the new Apple Developer Program, which combines everything you need to develop, distribute, and manage your apps on all Apple platforms.
Your existing Safari Developer Program membership will remain active until July 8, 2015 and your Safari extensions will continue to work for existing users.
You can continue building Safari extensions and bring your creativity to other Apple platforms by joining the Apple Developer Program. Join today to provide updates to your current extensions, build new extensions, and submit your extensions to the new Safari Extensions Gallery for OS X El Capitan. You can also learn how to extend your coding skills to create innovative new apps for Apple customers around the world."
Apple aims to improve the security of Safari on OS X El Capitan by implementing Secure Extension Distribution, meaning that all extensions in the Safari Extensions Gallery will now be hosted and signed by Apple. Safari extensions installed from the Safari Extensions Gallery will be updated automatically, while those distributed outside of the Gallery are ineligible for automatic updating.
Apple has created a page for developers to submit Safari extensions for OS X El Capitan in the fall, and developers can read both the Safari Extensions Review Guidelines and Safari Extensions Development Guide to prepare. Safari extensions available now will continue working for current users, and existing Safari Developer Program memberships will remain active until July 8, 2015.
Safari 9.0 will also feature content blocking extensions for both iOS and OS X, providing users with a fast and efficient way to block cookies, images, resources, pop-ups and other content. Xcode includes a Content Blocker App Extension template that contains code for developers to send their JSON files to Safari that specifies which content should be blocked. A full Safari 9.0 changelog is in the Safari Developer Library.
While charging stands of various designs have proven to be popular accessories for Apple Watch users, a perhaps lesser known category of accessories revolves around protecting the Apple Watch while wearing it.
One of these accessories is Actionproof's "The Bumper," a tight-fitting silicone sleeve that promises to protect your new Apple wearable from all the trips and spills made in everyday life. The Bumper may also provide some protection in extreme environments, with the bumper itself offering high resistance to UV radiation, ozone, outdoor exposure, extreme cold (minimum -40°C) and hot (maximum 120°C) temperatures, and basic chemical and abrasion combatants.
Positives
The good thing about The Bumper is that it does what it sets out to do. When placed safely around the 42mm Apple Watch case, The Bumper doesn't move or jostle throughout the day. It's a perfect fit for the wearable, with cutouts for the Digital Crown, microphone, speaker, and heart rate sensor. One of the only protective cases to cover the Digital Crown, The Bumper does so with a bracketed slice of silicone that bisects over the Crown, leaving an open space for your finger to manipulate and scroll the knob regardless of which wrist and orientation the watch is worn on.
The small piece covering the Digital Crown makes it so pressing on the button is still manageable, though not quite as easy as without The Bumper. And although a few phone conversations had over the Watch with The Bumper went smoothly, I felt my Apple Watch needed a closer positioning to my face than usual to both hear the conversation and provide ample speaking volume for the person to whom I was speaking. They, on the other hand, remarked no noticeable dip in quality or volume throughout the call.
Code hidden within iOS 9 files hints at upcoming iPhone improvements, suggesting Apple could potentially be planning to introduce a front-facing camera with flash support, the ability to capture 1080p video, and several rear-facing camera capabilities, like Panorama and Slo-Mo modes.
"CAMCaptureCapabilities" files in iOS 9 discovered by developer Hamza Sood have file names like "[CAMCaptureCapabilities isFront1080p120Supported]," which seems to refer to the front-facing camera on the iPhone. At the current time, the front-facing "FaceTime" camera is able to capture 1.2-megapixel photos and record 720p HD video.
There's no indication that these particular file names reflect Apple's upcoming plans for the front-facing camera, but it's possible that these are improvements we may see in the future. The front-facing camera has always lagged behind the rear-facing camera in order to save space, but with the increasing popularity of "selfies," Apple may choose to introduce some major upgrades to the front-facing camera in the future.
Rumors have suggested that the rear-facing camera will be gaining some major improvements with the iPhone 6s and the iPhone 6s Plus, so it's a reasonable assumption that the front-facing camera may also see improvements at the same time. There have been hints suggesting the iPhone 6s and 6s Plus could see the biggest camera jump Apple's ever introduced, adopting near-DSLR image quality.
Apple did recently acquire a company that specializes in dual-sensor cameras that produce better images and are capable of capturing 3D imagery, but it is not known if that technology will make it into the new iPhones. Apple is expected to introduce the two new devices in the fall, perhaps in mid-September, based on past release timelines.
Apple has released an updated version of ResearchKit with iPad support and several other new features for developers. ResearchKit 1.1 includes improved slider support, new active tasks, bug fixes, style improvements and more, with some of the changes briefly discussed during Apple's recent What's New in Cocoa Touch session at WWDC this week. The full changelog is listed below.
Today we're happy to announce that we've tagged a new stable release of ResearchKit, version 1.1. This new version includes multiple significant contributions:
Audiometry active task (Shazino SAS)
Reaction time active task (James Cox)
Navigable Ordered Task (Ricardo Sánchez-Sáez)
iPad support (Ricardo Sánchez-Sáez, Bruce Duncan, and others)
Image Capture step (Bruce Duncan)
Improved slider support (various contributors)
Plus various bug fixes and style improvements
Over the past few weeks these changes have had additional review for accessibility, and have been localized to all the languages iOS supports.
ResearchKit is a software framework that enables researchers and developers to create apps for iOS users to participate in medical studies. Given that ResearchKit is open source, many of the changes made in the latest version were contributed by third-party developers not employed by Apple. A commit list for the ResearchKit 1.1 update is available for developers on GitHub.
Apple seeded the fourth beta of iOS 8.4 to developers yesterday with a fix for a messaging bug that causes an iPhone, iPad or iPod touch to crash after receiving a specific string of Unicode characters via iMessage or SMS (via HDBlog.it). The bug also affects the Mac and Apple Watch and extends to third-party messaging apps such as Snapchat, Twitter and WhatsApp, as the issue is tied to the way banner notifications process Unicode.
Sending the string of characters to an iPhone, iPad or iPod touch results in an immediate respring, causing the device to crash and quickly reboot. From there, if the Messages app was opened at a list view, the Messages app crashes automatically when you try to open it. If it was opened to the conversation where you received the message, the app will open, but attempting to go to another conversation causes Messages to crash.
Apple recently published a support document on its website with a temporary workaround for the problem, and ensured that a permanent fix would be issued in a future software update. That fix has arrived in the form of iOS 8.4, which will be released ahead of Apple Music's launch on June 30. In the meantime, affected users can ask Siri to "read unread messages" and use Siri to reply to the malicious message in order to regain access to the Messages app and delete the message.
A new bug facing the iOS Mail app was found recently by security specialist Jan Soucek (via The Register). The malicious bug is capable of delivering false iCloud log-in prompts by allowing remote HTML content to be loaded through an email message delivered to the intended victim. The bug then delivers a convincing iCloud log-in box for users to re-enter their Apple ID and password. Soucek says that Apple did not respond to his discovery of the bug when he stumbled across it back in January.
"Back in January 2015 I stumbled upon a bug in iOS's mail client, resulting in HTML tag in e-mail messages not being ignored. This bug allows remote HTML content to be loaded, replacing the content of the original e-mail message. JavaScript is disabled in this UIWebView, but it is still possible to build a functional password "collector" using simple HTML and CSS."
The bug isn't relegated to only iCloud phishing attacks, however, letting anyone with access to it customize the attack to ask for whichever username and password credentials they feel the need for. Soucek kept the details of the bug only between himself and Apple, letting the company have time to possibly fix the attack and inform him of its progress. Given the company's remaining quietness on the subject, he decided to publish the proof of concept - called the Mail.app inject kit - on GitHub in hopes of spreading its awareness.
"It was filed under Radar #19479280 back in January, but the fix was not delivered in any of the iOS updates following 8.1.2. Therefore I decided to publish the proof of concept code here."
While Soucek's actions bring the malicious bug to more people's attentions and can help stop it in due time, it also means there's a wider chance for phishers to deploy it on their own. Until Apple comments on the story and offers a fix for the bug, it'll be safest to take precaution when any password prompt emerges while browsing email in iOS.
Spotify today announced that it now has more than 75 million active users and 20 million paid subscribers worldwide as the Sweden-based streaming music service prepares to compete with Apple Music, available June 30 on iPhone, iPad, iPod touch, Mac and PC.
Spotify doubled the 10 million paid subscribers it had through May 2014 in just one year, and has now paid over $3 billion in royalties to artists, songwriters and rights holders, including more than $300 million in the first three months of 2015 alone.
The Wall Street Journal reports that Spotify has also raised $526 million in a funding round that values the company at $8.53 billion, giving it significantly more financial backing to take on Apple Music and other rivals in the increasingly competitive streaming music market. Spotify will reportedly invest the capital raised from investors in expansion and new forms of content to further differentiate itself.
Apple Music and Spotify Premium both cost $9.99 per month (Image: WSJ)
Spotify operates at a loss due to significant royalties and revenue sharing with music label partners, although the company aims to become profitable through continued subscriber growth. The company announced plans last month to add video programming and podcasts from partners such as ABC, BBC, ESPN, NBC, Comedy Central, Conde Nast, Maker Studios, Turner Broadcasting and Vice Media.
Apple Music was announced earlier this week as a streaming music service, live global radio station and social platform for artists to connect with fans. The subscription-based service costs $9.99 per month with a three-month free trial for iPhone, iPad, iPod touch, Mac and PC. Apple TV and Android versions of the service will be available in the fall. Apple Music launches June 30 on iOS 8.4 and iTunes.
Apple has published a support document on its website confirming that it has been using a fleet of vehicles to collect street-level imagery for Apple Maps. Apple outlines that it will blur faces and license plates on images, as Google Maps does for Street View, and lists where Apple Maps vehicles will be driving in the United States, England and Ireland between June 15 and June 30.
"Apple is driving vehicles around the world to collect data which will be used to improve Apple Maps. Some of this data will be published in future Apple Maps updates. We are committed to protecting your privacy while collecting this data. For example, we will blur faces and license plates on collected images prior to publication."
Apple has been driving around fifth-generation Dodge Caravans equipped with LiDAR camera equipment on the roof to collect street-level imagery in the United States, starting with major cities and metropolitan areas in the south, northeast and midwest regions of the country. The mapping vehicles have been spotted in at least a dozen states to date as they continue moving further inland.
Apple Map vehicle collecting street-level imagery in New Jersey in May 2015
MacRumors has been tracking Apple Maps vehicles in the United States for the past several months, with the first sightings occurring in New York City in August 2014. Since then, using verified photos with GPS metadata, we have confirmed Apple Maps vehicle sightings in Atlanta, Chicago, Dallas, Los Angeles, Phoenix, San Francisco and many other areas. Many of those locations are listed below.
Click on the map for an interactive view of Apple Maps vehicle sightings in the U.S.
Anaheim, California
Atlanta, Georgia
Chicago, Illinois
Dallas, Texas
Las Vegas, Nevada
Los Angeles, California
Maui, Hawaii
Miami, Florida
New York City, New York
Orlando, Florida
Palo Alto, California
Phoenix, Arizona
Salt Lake City, Utah
San Diego, California
San Francisco, California
Sunnyvale, California
Apple confirms many of these locations in the support document, while adding Oahu, Boston, Detroit, St. Louis, Seattle, Tucson and surrounding counties as additional U.S. regions it will be surveying in the second half of June. Apple Maps vehicles will also head overseas to collect street-level imagery in Birmingham, Dublin, Essex, Kent, London and several other cities and counties in England and Ireland.
The collection of street-level imagery is part of Apple's larger shift towards in-house mapping data, in order to reduce its reliance on third-party companies such as TomTom, which has provided data for Apple Maps since it launched. Apple is also allegedly taking photos of businesses, storefronts and other points of interest to replace photos currently provided by Yelp and other third parties.
Send your photos of Apple Maps vans to tips@macrumors.com.
A day after the WWDC keynote address, Apple SVP of Marketing Phil Schiller joined Daring Fireball's John Gruber on Gruber's podcast, The Talk Show. The episode has not yet been posted, but The Verge was on hand to document the interview. Schiller addressed concerns about 16 GB iPhones, the decision between thin devices and battery life and the single USB port on the MacBook.
Gruber suggested to Schiller that the Cupertino company's iOS devices should come with larger storage capacities on the low end, as the 16 GB of storage provided in the base iPhone 6 or 6 Plus is harder to live with with the current size of apps. Schiller countered that services like iCloud could make up the difference.
"The belief is more and more as we use iCloud services for documents and our photos and videos and music," he said, "that perhaps the most price-conscious customers are able to live in an environment where they don't need gobs of local storage because these services are lightening the load."
Schiller also said that using 16 GB storage for lower-end models allows Apple to save money for use on higher-end components in other parts of the device, like the camera.
When asked about the relationship between the thickness of a phone and battery life, and whether maintaining the thickness of its devices could lead to more power-efficient internals and bigger batteries, Schiller said that Apple has the right balance with its devices. He points out that a device with a larger battery and thickness becomes heavier and takes longer to charge. Schiller notes that Apple tries to figure out the tradeoffs with every device it makes, and he thinks the company has made "great choices" in those tradeoffs.
The Apple SVP also acknowledged that the new MacBook, with its one USB-C port and new keyboard, isn't for everyone. However, he said he believes that Apple is a company that needs to release forward-thinking products like the new MacBook, which is an effort to push the world into a place where users don't plug things into their laptops. Schiller said he wants an Apple that's "bold and taking risks and being aggressive."
Apple has faced criticism for its "bold decisions" in the past, with users unsure of whether a 16 GB device is enough for a daily driver, concern about whether new devices will have improved battery life with thinner designs and products with new technology that come with heavy initial limitations.
Update: Full video of the interview is now available. There is some profanity, primarily during the introductory section before Gruber and Schiller take the stage.
Government officials in New York and Connecticut are investigating the deals Apple and major record companies established for Apple Music to determine whether there were any antitrust violations, reports The New York Times. Eric T. Schneiderman and George Jepsen, attorneys general in the two states, are suspicious Apple tried to convince record labels to abandon free, ad-supported music services like those offered by Spotify and YouTube.
The attorneys general wanted to know whether Apple pressured the music labels -- or whether the labels conspired with Apple and one another -- to withdraw support for popular "freemium" services offered by companies like Spotify in favor of Apple's paid music subscriptions.
Spotify offers a freemium ad-supported music tier that lets listeners access music at no cost, provided they also listen to ads. Apple Music does not include a free tier for on-demand listening like Spotify, instead requiring all users to pay $9.99 per month for an individual plan or $14.99 per month for a family plan. Apple does, however, offer a separate radio service that can be accessed for free.
There have been rumors suggesting Apple asked record labels to discontinue allowing services like Spotify to offer music at no cost, which has led to scrutiny from the European Commission, the United States Department of Justice, and the United States Federal Trade Commission. Apple Music would, of course, be a much more appealing option should other services not be able to offer music for free, but it remains unclear whether Apple executives did indeed push labels to change their deals.
According to The New York Times, Universal Music Group is cooperating with the investigation and has told the attorneys general via letter that it has no agreements with Apple or other record labels that "impede the availability of free or ad-supported music streaming services" and it has no intention to enter any such agreements. UMG has also provided MacRumors with the following statement:
"UMG shares the Attorneys General's commitment to a robust and competitive market for music streaming services in the mutual best interest of consumers, artists, services and content companies alike – and we have a long track record to that effect. We are pleased to have provided the Attorneys General information demonstrating that conduct. It is our understanding that, given these representations, the Attorneys General have no present intention to make further inquiries of UMG in this regard."
In a statement, Connecticut attorney general George Jepsen said he was satisfied with the response he received from UMG. "We will continue to monitor that market to ensure that consumers and competition are protected," he said. Schneiderman's office made a similar statement, saying "It’s important to ensure that the market continues to develop free from collusion and other anticompetitive practices."
Jepsen and Schneiderman have been involved in Apple's affairs several times in the past. Jepsen led a lawsuit against Apple during the e-book price fixing scandal and has questioned Apple about Apple Watch privacy concerns. Schneiderman has been involved with smartphone anti-theft measures and was one of the main proponents of a "kill switch" for smartphones.
Update 6:42 PM PT: This article has been updated to include an official statement from Universal Music Group.
Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
Following yesterday's debut of Apple Music, Jimmy Iovine and iTunes Chief Eddy Cue sat down with Billboard to discuss the new service and app, which combine on-demand streaming music with 24/7 radio and a social networking platform where artists can interact with fans.
According to Cue, the $9.99 individual price point for Apple Music wasn't a sticking point for the company as some earlier reports suggested, but the company was invested in negotiating a reasonable family subscription price. Apple Music lets up to 6 family members share an account for $14.99, a price point that Cue says will get entire families on board with the service.
I think the cost of an album for a month of subscription is fair. Could you argue, $7.99 or $8.99? Who cares. I think where subscription is missing the boat is on the family -- you have a spouse, boyfriend, girlfriend kids ... the concept of signing up for these individual subscription plans multiple times is just not going to happen so we spent a lot of time with the labels to convince them that the real opportunity here is to get the whole family. With that, all boats rise.
On the subject of streaming music cannibalizing iTunes downloads, Cue says he expects some of the customer base to subscribe instead of buying music, but he believes downloads will "go on for a long, long time." "There are lots of people who are very happy downloading," he said. "And I think they'll continue to."
Explaining the reasoning behind a 24-hour human-curated radio station, Iovine explained that over the past 15 years, radio's become manufactured, something he'd like to change. "It's either genre-based or beat-driven or research-driven," he said. "So I said, let's build something that's got none of that that just plays music because it's great."
Cue and Iovine also did interviews with The Wall Street Journal and The Guardian, sharing much of the same information, but in the latter interview, the duo also spoke on Apple Connect, the social networking component of Apple Music. The point of Apple Connect and Apple Music in general, said Cue, was to give artists and labels control over content sharing.
"Our viewpoint was very simple: let the artist and label control it. They can put it up on Connect for free if they want to, or they can put it up behind the [subscription] paywall, or they can make it available on the iTunes Store for sale. They're in control of their music and how they want to distribute it," says Cue.
Iovine added commentary suggesting a music service needs to be "a win for everybody." "We wanted to give artists a place where there's a rhyme and a reason," he said. "Where there's a payoff! And not just a financial payoff, but an emotional payoff. A creative payoff."
Apple Music, with its on-demand streaming service, Beats 1 radio station, and Apple Connect platform, will officially launch on June 30, as part of the iOS 8.4 update. As previously mentioned, it will be priced at $9.99 for individuals and $14.99 for families. Existing Beats subscribers will be able to transition their subscriptions to Apple Music.