This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

If Only Beats Music Could Run a Streaming Service As Well As It Runs Its Mouth

NEW YORK (TheStreet) -- Given the underwhelming and downright embarrassing launch of Beats Music, I won't be writing about them much -- they will prove to be a non-factor that talked too big a game.

It's not easy to accomplish what Spotify (and Rdio) have accomplished on the subscription side of Internet radio or what Pandora (P) has pulled off on the pure-play personalized radio side. If you're going to come at these guys, you need to bring your A-game and bring it from day one.

As this understated and euphemistic memo to Beats users from its CEO, Ian Rogers, indicates, that simply did not happen:

Huge thanks to everyone for making our launch day yesterday so successful. We've been blown away by the love that made us the #1 Music App in the iTunes Store.
Due to the extremely high volume of interest in our service some users are experiencing issues. Most people are unaffected but our priority is to give everyone a great experience. We prepared for issues like these, have a plan, and are going to hold off on letting more people in while we put this plan in action.
For those of you that claimed your name in the lead up to launch, we still have your username reserved and we'll be in touch with your invite. We appreciate your support.
Everyone who registers this week will get an additional seven days added to their trial.
We're staying focused on bringing you the best music experience from the people who know what song comes next. Stay tuned, and thanks for being excited about Beats Music.

While the Beats app is as buggy as can be with a sloppy and wholly unintuitive user interface, one area where Beats doesn't lack is in misleading people sans context and pounding its chest inaccurately, prematurely and with downright false claims.

Yes, it is the #1 free music app in Apple's (AAPL) App Store, however, consistency is what counts.

Upon launch, tons of people are simultaneously downloading your app, which inflates what will end up being a temporary position on the App Store chart. Same thing happened when Songza debuted and triggered considerable media coverage. But it's the long haul that matters. The snapshot I published Tuesday provides a view of how things actually look in the App Store on an ongoing basis. I reckon Beats will fade down the charts the same way Songza did.  

Here's what Spotify CEO Daniel Ek told the Hollywood Reporter about Beats. And, by the way, he's 110% spot on:

It's a competitor, for sure, but my way of looking at it is, if it gets people to understand the value of streaming, it is ultimately good. Our way of doing this is not just slapping some celebrity brand on it and hoping it will be good. We are a social service; we are a product company. People have tried to put a brand on it and thought that's enough, and they have failed: Microsoft (MSFT), Nokia (NOK)  -- many big companies.

And his thoughts on Apple as a competitor ... also on the money:

iTunes is more of a competitor (than Pandora) because it is "your music" for a lot of people. But it is so obvious that Spotify is much better because you can put more than 20 million songs in your pocket and access at any moment. You just pay your $10 per month or even use it for free. The benefit of being on Spotify as opposed to iTunes is huge.

--Written by Rocco Pendola in Santa Monica, Calif.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks. Rocco Pendola is a columnist for TheStreet. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs