Home Uncategorized Apple iTunes Relaunch Could Add 75 Million Paying Streaming Music Subscribers

Apple iTunes Relaunch Could Add 75 Million Paying Streaming Music Subscribers [SURVEY]

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Beats apple
How strong a competitor will a
new iTunes streaming music service embedded
within Apple’s popular iOS operating system
be?  Very strong, according to a survey of 1000
consumers.

20% Of Consumers Say They’d Likely
Subscribe

To An Apple Music Service


Midia

20% of US consumers would pay $7.99 for an Apple music
subscription service, with the rate rising to 28% among iOS
users, according to a new survey conducted by the MIDiA Group.
If just 15% of Apple’s  500 million iTunes users adopted
the Beats-based streaming music service expected to launch this
June, the total number of paid streaming music subscribers
globally would grow by 75 million.

By contrast, as of early 2015, current global leader Spotify
had 15 million paid subscribers among 60 million
active users.

The survey does have a flaw.  It asked potential users
about a $7.99 monthly price point, which was the rumored fee
earlier this year. If it is the now more likely $9.99 a month,
how many will not sign up? Even at half of the estimated
75 million, Apple would have 2.5 times the paid subscribers as
Spotify currently, with no free tier.

Early Adopters & A Decline In
Downloads

“Interest levels are significantly lower for download buyers
than for subscribers,”  according to Mark Mulligan of
MIDiA. “However downloaders represent a bigger opportunity
because there are so many more of them…. So while Apple’s
first wave of adopters will likely over index towards existing
subscribers, they should be followed relatively swiftly by a
cohort of engaged download buyers.  Which of course means
mid term we will also see a significant downturn in download
sales.”

“Apple is entering the subscription market largely as a
defensive measure, to reclaim market leadership and to help
slow the leakage of some of its most valuable customers out of
the iTunes ecosystem,” continues Mulligan. “But if it can find
an elegant way to blend the best elements of iTunes Radio,
iTunes, Beats Music, Genius and the App Store, Apple could end
up with the most comprehensive music offer on the market.”

In other words, watch out Spotify.

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