Home Uncategorized Could Apple’s iTunes add 75m paying subscribers to music streaming market?

Could Apple’s iTunes add 75m paying subscribers to music streaming market?

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Could Apple's iTunes add 75m paying subscribers to music streaming market?

Apple could quickly become the biggest streaming music subscription service in the world after it relaunches its Beats Music service later this year, according to a survey conducted by music industry analyst Midia Research.

The company asked 1,000 Americans whether they would subscribe to an Apple music streaming service for $7.99 a month, and found 10% saying they’d be “very likely” to sign up, and another 10% saying they’d be “likely” to. When it came to iOS users only, 15% were in the “very likely” camp.

“Make no mistake, if 15% of Apple’s entire 500m or so iTunes users were to subscribe, the subscription market would be transformed, growing the total number of subscribers by 75 million,” wrote the report’s author, Mark Mulligan.

“Even a year one target of a quarter of that would be transformational to the subscription market, but both numbers are far short of the approximately 250 million iTunes users who regularly buy music downloads.”

There are important caveats that come with these claims, though.

First: since the survey was conducted in mid-February, reports have suggested that Apple has been haggled upwards by music labels to $9.99 a month for its streaming service – matching Spotify and other rivals.

Mulligan still believes that the $7.99 price “will happen eventually even if it does not in 2015”, but it’s fair to question whether those who ticked “likely” may have been fewer in number if the survey had presented them with the higher price.

 

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