Can BeatsMusic Streaming Compete With Spotify?

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Jan. 21 (Bloomberg) -- Bloomberg News’ Cristina Alesci , examines the new streaming music service from Beats and how they’re looking to beat competitors with brand loyalty on Bloomberg Television’s “In The Loop.”

We could talk about the size of their music catalog, the fact that people carry their playlists versus computer algorithms, other selling points.

They have a very innovative strategy when it comes to pricing this and who they are partnering with.

They have corporate partners, at&t and target.

They may not mind subsidizing some of the data usage and some of the streaming services they are providing an exchange, they get customers and they get customers in the door and to be associated with a very cool brand.

It is a very innovative idea.

Keep in mind, they are not offering a premium model.

There is no free service, no free service to get people addicted.

This is what is burning pandora and spotify.

They cannot get people to transition from the free service to the premium service.

Eight dollars a month?

$9.99 a month per individual.

There is a family plan.

John borthwick, ceo of betaworks, why can't pandora and spotify do what beats has managed to do?

I think the corporate partnerships you are mentioning are really interesting, particularly with at&t. i searched yesterday, i was looking for the new beat service.

At&t was advertising on google for the service.

An ad came out, you could see they are matching services.

Wireless and data plans.

A bunch of implications that we don't want to go into now, from a policy perspective.

B's is trying to do something different.

Music apps are really important.

We did analysis of the last couple weeks of betaworks, looking at asked people have on their home screen.

The top screen of their phone.

Something that fascinates me and we are fascinated with at betaworks, we want to invest in apps.

Streaming music?

The top of the phone is valuable real estate.

Of the sample size that we pulled, 49% of people have music, the standard apple music app.

22% have spotify, 16% audio.

These are high numbers.

Then you think that the switching costs of the services is fairly low.

The playlists and the social aspects embedded.

If there is a good new service, people will jump over.

One thing i would say about it being a good service, one thing that will make the squad is i successful is the fact that they have launched the beats headphones.

People know the brand as a result as how popular the headphones are.

One thing that may hold them back, one criticism against the headphones has been it is all style no substance.

I am a music listener, i invest in headphones and have my own $300 headphones.

That's segment of the market is growing.

If you stack the beats headphones next to any other headphones in that price range, you are not going to get better sound quality or less coloration , an industry term, it means you are modifying the music quality.

It is about the brand.

If they can get conversion from the headphones to the music service, that is winning.

The question, is the music on a quality basis that much better than what you get with pandora

This text has been automatically generated. It may not be 100% accurate.

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