Apple’s Streaming Service Takes aim at Spotify
Apple’s new music streaming service has the uber-popular Spotify squarely in its sights. Apple’s streaming service, tentatively dubbed “Apple Music”, is a complement to its current Apple iTunes music downloading service. Apple Music is the company’s attempt to grab a piece of the music streaming market that is currently dominated by Spotify.
According to popular media sources, Apple is responsible for a robust 85 percent of all music downloads around the world. That is an absolutely mind blowing number. Yet Apple has failed to gain any ground in the music streaming business where Spotify accounts for 86 percent of all music streams.
Apple’s current lack of market share in the music streaming space represents a nasty problem as music downloads are going the way of the Dodo bird. The industry and its customers are rapidly moving away from paid downloads and toward paid streams. Few people want to store music files on their computers or mobile devices. They would rather stream them and preserve their precious hard drive space for other important programs and files.
The Transition From iTunes Radio to Apple Music
The big wigs at Apple have recognized the worldwide movement toward music streams and created the Apple Music streaming service as a response. Before the debut of this service, Apple’s music streaming service was rather pathetic. While customers can rely on iTunes Radio to listen to music created with iTunes content, most are not satisfied with the experience. Very few Apple loyalists have taken to iTunes Radio. The company is banking on Apple Music to generate considerable inroads with those who desire to stream music from all of their devices regardless at all points on the globe. There is no doubt that the announcement of this new service is a metaphorical warning shot in the direction of Spotify.
Can Apple Steal Some of Spotify’s Market Share?
Anyone who has followed Apple’s remarkable progress over the years has no doubt that the company will steal a good portion of Spotify’s market share. Spotify currently has a near monopoly on the music streaming market. A powerful competitor like Apple has a decent chance to lessen Spotify’s market dominance. Apple’s new music streaming service will run a mere $10 per month. Industry experts anticipate that the service will begin with an initial trial period that will last for one and three months. Some news outlets have reported that Apple desired to roll out an $8 per month streaming service but the major record labels balked at such a low user fee. At only $10 per month, Apple Music should allow the company to attract at least a small portion of Spotify’s user base.
While Apple’s streaming service is not cheaper than others, the company sweetened the pot by allying with some of music’s top names. Hip hop artist Drake and producer/performer Pharrell Williams have hopped on board. They will lend their voices to Apple Music’s radio stations. While a roster of top notch artists hasn’t propelled Jay Z’s new music streaming service, Tidal, to success, this does not mean that the strategy will fail for a brand name company like Apple. Spotify, Pandora, Tidal and other music streaming competitors should not make the mistake of underestimating the loyalty of Apple’s customer base. Like most of the company’s creations, Apple Music will likely be a massive hit.