When the trending music industry emphasized that the most worthy and valuable brand of the world won’t be able to win listeners’ heart just because it was Apple. If talked about Internet Radio, iHeartRadio and Pandora has climbed high in its start; Spotify is also stepping to ascend in the subscriber’s list. Although, after 4 months, Apple is gaining growth gradually, it is making its way ahead firmly.
Tim Cook, CEO of Apple, unveiled that almost 6.5 million subscribers are paying $10/ month to stream music. The service seemed to be touted because of its free 3-months trial. Albeit, Apple is far enough to reach Spotify’s 20 million paid users, but it’s been perfect for them as they are not in any hurry but under slight pressure to exhibit quick returns. It is the overall value of the company, its resources and size, which will ultimately prove triumph in music.
Apple does not need to win the music race
There’s no doubt about Apple’s innovation and creation as it has been in the digital music business since the launch of iPod-first music streaming source/device. Apple never set to compete for anyone in the market but tries to gain the most out from users and subscribers. It believes in ‘defense’ more than ‘offence’ as they claim that they have got top-notch creative music team that lures a million subscribers to pay on their phones as well as in their cars-TVs.
According to The Evening Standard, Eddy Cue, the Sr. Apple Executive of Apple Music expressed
“Everybody gets repaired in little time but we’re in this for the long haul.”
Pandora, one of the biggest competitors of Apple Music, has almost six times the active listeners than Apple of around 15 million. But unlike Pandora who lost 1.3 million listeners in its 3rd quarter, Apple Music doesn’t have any such sharp drop in its subscriber base. Of course, the supply of music streaming is limitless as ‘YouTube Red’ with its video subscription service, Amazon Prime. Deezer, Rhapsody and Rdio are in the market to drastically face cut-throat rivalry.
Richard Greenfield, BTIG Research Media Analyst, says, “Though the video world is quite different in the current scenario as there’s barrier to entering ‘Game of Thrones’ content, unlike Music world where anyone can replicate everyone & aren’t totally exclusive. A billion dollar company, jumping in music space, is a logical and very obvious looking decision as people spending the time to listen music is far more than expected earlier. It’s a fact that the profit margin gets tighter as the competitors increase because online music hasn’t been so profitable but gains user’s reliability and trust.”
What Apple thinks?
Apple might not have gained the momentum in the launched service, but they confirm that they are playing long haul and so takes time. Followed by some mixed critic reviews and potential users’ complaints they are more careful to look after it and not immediate to be in the herd as they are focused into ‘Something Big’.
Hardware being the main business of Apple, it’s streaming music service looks tiny to grow substantially but more crucially they have the cash to keep the high profile artists to gain more paid subscriptions.
Moreover, Richard Windsor, an Edison Investment Research analyst, writes, “It is the radio that Apple is targeting on than recorded music streaming. Their music Industry is worth 16 million dollars and radio advertising of about 44 billion dollars per annum.” He added, “Beats 1 is available free of cost on every recent 400 million iOS devices.”Thus, as always, Apple is doing some antique preparation to lead them in the market as Apple is not at all dependent on Music to succeed. They are about to be more than Apple Music with iPhone, Siri, Apple TV and CarPlay, TV boxes to be invented in near future.
Article publié pour la première fois le 22/11/2015