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Wheelings & Dealings: Apple Gets a Taste for Talk Radio, Set to Buy Swell App

TMCnet Feature

July 28, 2014

Wheelings & Dealings: Apple Gets a Taste for Talk Radio, Set to Buy Swell App

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By Steve Anderson
Contributing TMCnet Writer

Apple (News - Alert)'s reputation in the music distribution field is well-known, thanks to its iTunes system and the role music plays in the development and operation of much of Apple's mobile device line. But Apple isn't just about music, as we've seen with all the video work being done in iTunes and the various apps, as well as gaming, done there as well. Now, Apple's looking to expand its offerings still further, and reports suggest it has its eye on the Swell app, which is a kind of Pandora (News - Alert)-style service for talk radio.


Reports suggest that Apple's planning to shell out $30 million for the app, which should sound good to investors as so far a variety of same—including Google (News - Alert) Ventures and InterWest Partners—have contributed to bring in around $7.2 million for the app so far at last report, implying a fairly impressive return on investment approaching. But what will Apple be getting for its $30 million?

The iOS version of Swell makes it fairly clear, as that version gathered up various podcasts and shows, and then combined same into personalized streams, making it not only easier to find that which people enjoyed, but putting it into one continuous session. This deal should actually work out well for all sides, as Swell was widely loved—it worked well for listening in the car, a key component for any radio analogue, as well as offering great fan engagement—but had a tough time finding new listeners, while Apple had a podcast app currently available, but one that most just didn't care for. The app itself had an average rating of 1.5 stars out of the standard five-star system. What's more, Swell had been working on an Android (News - Alert) version, but it was never actually released, and now likely won't be.

As part of the terms of sale, at last report, Swell itself will be shut down later this week, and most of the Swell team of developers will be joining up with Apple. It's also part of a series of purchases Apple has made in recent days, including the $3 billion purchase of Beats, and the much smaller purchase of book recommendation service BookLamp, showing Apple's eager to keep going in terms of building the brand.

This is a very smart idea for Apple overall. With questions enduring over Apple's ability to innovate much further in terms of hardware, there is certainly more than enough room for the company to innovate in terms of software. With augmentation to the listening systems, to finding a book, and now to stepping up the way users can find podcasts, the end result should help Apple at least hold onto its current market share, and not see a host of users jump ship for, say, new releases from Samsung (News - Alert) or the like. Plus, it's gained a critical advantage here that Android can't offer, at least, not as yet; the Swell app was mostly an iOS proposition anyway, but now, Apple has potentially ensured that that will always be the case.

With the smartphone market looking saturated, it's not hard to see how users might be getting a little bored with Apple's new releases. Purchases like Swell, meanwhile, may help keep Apple near the top of its game while it works to modify the hardware base and recapture a bit of that old magic.




Edited by Maurice Nagle


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