[OT] Apple at it again

Erik Schwartz eriks at sisyph.us
Fri Feb 25 10:54:36 EST 2011


The real purpose of this may be to chase products that are competitive
to Apple's offerings off the iOS platform.

Apple bought Lala last year. The companies most impacted by the new
subscription rules are subscription based streaming media products
(Pandora, Netflix, Rhapsody...). There simply is not 30% profit margin
in these business, they do not make enough money to cover their
expenses AND pay Apple. They cannot stay on iOS, the bigger they get
the greater their losses will be.

When Apple relaunches Lala it will compete directly with these media streamers.


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