Hugh McIntyreContributor
I write about the music industry, from tech to charts and more.full bio →
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MEDIA & ENTERTAINMENT 1,541 views
Apple Music's Ambitions Of 100 Million Users Would Change The Industry Forever
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There is a big question about whether Apple AAPL -0.98%’s upcoming streaming service will be good or bad for individual labels and artists, but there is no uncertainty about the fact that Apple Music is poised and ready to be a major player in the space, and that it could easily bring in billions of much-needed revenue into the industry.
Earlier this year, Apple confirmed that it has now sold over 1 billion iPhones around the world, and come June 30, each one of those will have easy access to the company’s new music product. Apple’s fanbase is huge, and there are already millions of people all but foaming at the mouth to try anything the tech giant releases, including Apple Music. From day one, the service is sure to make a big splash, and depending on its reception by the public, it might only grow from there.
Because this is Apple we’re talking about, the company certainly isn’t looking to slowly acquire users and grow over time—that’s just not how it works. Instead, the company is looking to attract as many people as they can to Apple Music at first with their three free months, and then with what looks like an excellently-designed and useful product. Apparently the company is hoping to eventually convince 100 million people to pay $10 for their service, which is five times the size of Spotify’s current subscriber base.
SAN FRANCISCO, CA – JUNE 08: Apple’s senior vice president of Internet Software and Services Eddy Cue (R) greets Apple CEO Tim Cook (L) during the Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, iOS 9 and Apple Music during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
100 million people sure sounds like a lot, but if any company can make that happen, it’s Apple. To get to that benchmark would require just 10% of iPhone users to sign up. Many of those already using Apple’s phones likely have some form of music streaming service, so some of those millions may come from conversions, while others will accept Apple Music as their first real venture into the streaming world.
If Apple is successful in hitting that 100 million user mark, it would mean just about $1 billion in monthly revenue, and $12 billion a year. To put that into perspective, the entire global recorded music industry is worth just under $16 billion as of last year, so it’s not hard to see the impact that Apple’s service could have on an industry that is hurting.
Now, not all of this will be “new money” that’s coming to the music world. With so many people using Apple Music, sales of albums and songs on iTunes are sure to drop even faster than they already are. Some of that money is certainly going to be displaced (from sales to streaming subscription payments), but the two won’t likely be equal, at least not after some time has passed. Income from streaming is sure to surpass sales soon enough for everybody.
Whether the iPhone maker actually hits 100 million users or not isn’t really important right now. First, this launch has to go well, and then we can all talk about dropping our accounts elsewhere and flocking to Apple Music in droves.
Hugh McIntyreContributor
I write about the music industry, from tech to charts and more.full bio →
Opinions expressed by Forbes Contributors are their own.
MEDIA & ENTERTAINMENT 4,259 views
Apple Does More Following Than Leading With New Apple Music Streaming Service
Today at its annual Worldwide Developer’s Conference, Apple AAPL -0.98% finally announced its streaming service, which will follow the company’s naming trend and simply be known as “Apple Music”.
Coming to iOs users on June 30th (and Android users in the fall at an undetermined time), Apple Music is following in Tidal’s brave footsteps by only offering the service for free as a trial membership. After three months of using the updated app, users will either have to decide to look elsewhere for their streaming needs, or fork over $9.99 a month. Families can subscribe to six totally separate accounts for just $14.99 a month, saving them a bundle.
As it stands now, there isn’t a whole lot that makes Apple Music stand out from the crowd. The company is stressing its wonderful human curation, which others are also hard at work on, and which can never be fully perfected, no matter who is behind the music. Also mentioned was the beautiful look of the app, which is based on featuring high-quality images of artists when you look them up. This does make the service visually appealing, but it’s not an original idea either.
SAN FRANCISCO, CA – JUNE 08: Jimmy Iovine announces Apple Music during Apple WWDC on June 8, 2015 in San Francisco, California. Apple’s annual developers conference runs through June 12. (Photo by Justin Sullivan/Getty Images)
In the end, whether the service itself is better or worse than the others may not matter. When there are half a billion people who already have the app as it launches, it’s poised to become one of the most powerful services in no time.
The new streaming service has three sections to it, all of which are housed in one app under the new moniker: Apple Music, Beats 1, and Connect. Here’s a rundown on what each one does.
Apple Music
This is a neat mixing of your already-existing music collection and a traditional streaming site. Apple Music will put those songs and albums that you’ve purchased over the years—whether from iTunes or even from traditional CDs that were then ripped to your computer (remember having to do that?)—alongside the 30 million tracks available in their library. Now, that’s just the on-demand option available.
This is a neat mixing of your already-existing music collection and a traditional streaming site. Apple Music will put those songs and albums that you’ve purchased over the years—whether from iTunes or even from traditional CDs that were then ripped to your computer (remember having to do that?)—alongside the 30 million tracks available in their library. Now, that’s just the on-demand option available.
In addition to a massive catalog of songs and albums to choose from, the app will also feature playlists, both created by you and from some of the best talent available in the industry, which have all been brought on by Apple itself. Actual people will be creating playlists all the time, and the app will be able to suggest ones based on what music you own and what you’ve been streaming. For those playlists that you’ve made, you can add your own album art (a photo that seems to fit with the music, perhaps), or stick with the album art provided.
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