Apple Targeting 100 Million Subscribers for Streaming Music Service

[rockosmodurnlif]

Why does it have to be better? It doesn't. Apple Music simply has to be 'good enough' to compete.

I bet within a month, more people will know what Apple Music is vs. Spotify or Rdio. Most people don't know what those are now. The only one that has made a name for itself, that most people know is Pandora.

(Most people still use real radios to 'stream' music - I bet Apple will change this with marketing)

It has to be good enough for people to spend $10/mo. Like you mentioned Pandora, it has to be better than that, $10/mo. better. I don't know that playing any song you want at any time is worth that when most people will just go to YouTube & have songs available there that aren't on any streaming platform (Beatles, Tool, etc.).

 

[dannyyankou]

Hope Apple Music has lossless audio. I've been considering signing up for Tidal and using the student discount.

 

[peterdevries]

(but, since it will be US only, that's only 1/3 people here. There's room for growth.)

They are targeting 100 million subscribers so this is global. But I guess it will be rolled out in a staggered fashion and will take a while to reach the second Tier countries.

 

[Benjamin Frost]

Ohhhhhhhhhh PHONOGRAHPIC. That's not what I read at first...

It's not? Try reading more carefully, then.

 

[Wreckus]

They are targeting 100 million subscribers so this is global. But I guess it will be rolled out in a staggered fashion and will take a while to reach the second Tier countries.

Don't think Apple has that luxury this time, doing staggered release that is. If they do that, Spotify, google music, etc will pounce at ones in those markets with advertising, etc to have you join their service. I can especially see MS do a special yearly price for Xbox music at E3 next week if it doesn't come to Canada & Europe next week.

IMO,  needs to go global from day 1.

 

[e93to]

I think it's difficult for Apple to achieve 100 million subscribers after trial period... How many people keep annual subscription on Sirius on their cars..? I have not come across any except for some people on car forums.

Furthermore, another monthly payment? We already deal with a lot of monthly payments, so adding another to the list can be redundant for many people.

However, a lot of people around me (anywhere between ages 20 ~ 30) are not familiar with music streaming service. If Apple does their marketing magic, and makes big deal out of it, people might, well literally, tune in for subscription.

 

[peterdevries]

What do you think it will do that is so much better than the competition?

They will win by convenience. The app will be on all devices by default which more or less guarantees that everyone will at least try it. An analogy: there are far superior camera apps in the itunes store, but the overwhelming majority of photos are made wit Apple's native app. People like options, but faced with a satisfying default solution they are not likely to switch.

Combine that with convenient billing and a great existing library which is bigger than it's most significant competitors and there is not a lot that Apple could do to not become one of the major players very quickly. I just hope they can withstand the temptation to make it too social (Ping).

 

[SirLance99]

I fully expect Apple to deliver on these ambitious numbers. I've been saying for some time I'm expecting the likes of Spotify and Rdio to become also-rans in a relatively short space of time. They cannot compete with Apple.

I certainly hope not. I like having choice and competitive alternatives.

 

[keysofanxiety]

It's not? Try reading more carefully, then.

Don't be a rudey-dudey.

 

[JGIGS]

I got in at a $7.99 Canadian as the introductory price for google play music so I'll probably stick with that. I expect Apple will charge Canadians 20% for there exchange and unless they have a lossless option with smartlist no reason for me to change. If anything I would cancel my current subscription and use the free spotify service for how often I get around to listening to music.

 

[JeffyTheQuik]

They are targeting 100 million subscribers so this is global. But I guess it will be rolled out in a staggered fashion and will take a while to reach the second Tier countries.

I guess my humor was a little too dry on my post.

 

[Wreckus]

I got in at a $7.99 Canadian as the introductory price for google play music so I'll probably stick with that. I expect Apple will charge Canadians 20% for there exchange and unless they have a lossless option with smartlist no reason for me to change. If anything I would cancel my current subscription and use the free spotify service for how often I get around to listening to music.

I wouldn't be surprised if its 10 bucks regardless where you are. For example, it would be 10 bucks in the US, 10 bucks CAD, equivalent of 10 bucks in England, etc.

 

[SirLance99]

Good luck on that Apple. The only way this is going to happen is if you open this service up to other platforms like you did with iTunes

Exactly! No way Apple can get that number on iOS alone. They have to expand to Android for that number.

 

[bpeeps]

While Pandora is admittedly popular with many, broadcast radio is a joke. Nobody who enjoys listening to commercial radio can claim to have any appreciation for or taste in music.

It took 3 pages for this nonsense to be posted, thought it would have been much sooner. Please enlighten us with the oh so tasteful music you divine your ears with, music master.

 

[SirLance99]

100 Million times $10/month = $1 Billion per month. 3 months at $1 Billion/month = $3 Billion.

If this is going to be embedded in iOS 9, it seems very likely Apple will become King of the streaming space within hours after launch. This is just the Microsoft IE browser (vs. established Netscape) thing again.

And, since there is a 90-day free trial, Apple should be able to tout gigantic numbers of users pretty quickly. The key question will be monetizing free trials to stick around and start paying. The referenced rumor of 800 million iTunes accounts means about 1/8th of all iTunes users will need to not only partake in the free trial but convert to paying subscribers AND/OR that this will significantly draw more people into the iTunes total number of accounts pool.

One other interesting bit of (obvious) math: $1 Billion/month times 12 months = $12 Billion new dollars for AAPL's revenue line.

Except that non of that will happen. They'll never get to 100 million and the people that do the free trial will fall off instantly because they won't want to pay. This is not a $12B revenue line you're touting.

 

[Mjmar]

Siri integration is the killer feature for me

 

[0098386]

from my limited user terms and agreements understanding, anything digital is not owned. they can pluck it from you anytime. only physical media is owned. I am sure someone with more understanding can correct me.

Absolutely. I work in games and I've always thought (though not published) that should the platforms my games are currently on ever shut down, that I'd give customers DRM free versions so they can keep it forever. For music though, once it's on my HDD without DRM theres nothing they can do about it, and that's why I keep my files local rather than storing my music library in iTunes Cloud.

 

[SirLance99]

Things do NOT work that way here.

What happens is that Apple releases maps, it's buggy at first. Then gets better. Right now it's very good. Therefore, people like me use it.

It's just that people aren't allowed to say they like an Apple product or they're labeled as fanboys and their opinion is derided. It's really ridiculous. Google Maps 'must' be the choice for maps, or they're 'wrong'.

No, Apple Maps is still bad. Really bad.

 

[dampfnudel]

I'm up here in Albany and it is definitely the over 40 crowd that doesn't know about Spotify and still ramble on about Pandora.

A lot of people I've met/know over 40 here in NYC know about Spotify. Personally, I think the forecast/prediction of 100 million paid subscribers is too ambitious, even for Apple.

 

[deconstruct60]

I mean, they're practically killing off the iPod line and refusing to update them with any new hardware. I suppose if it's based around streaming then the need for iPods with large internal storage aren't required....

The iPod is being squeezed out by the other Apple products ( some not "new" ones ). The iPad mini is now $249 ( lower than a chunk of the iPod Touch line up) and there are a huge buckload of last gen iPhones out there which if turn off the cell service subscription make more than a decent iPod Touch.

iTunes music is DRM free so it plays just fine in most any very low cost music only player and in the much larger (at this point worldwide) Android phone space.

Apple is just milking what is left of the aging cash cow at this point with iPod hardware. If Apple Music means the defacto return of Apple DRM then perhaps their will be some iPod updates this Fall.

 

[ChazSch]

Ha he got Rock Rolled

 

[peterdevries]

No, Apple Maps is still bad. Really bad.

I use it as my main navigation application and as a consultant I need to drive to new locations very often. Apple maps has been extremely reliable to me. Although you might personally find it useless, it is very useful to many of us.

 

[ChinaRye]

Again, people are reading something into the Maps app reference that is not there. It's not about the quality of that or this app. I offered it to illustrate the concept of how easy embedding a default app into iOS can make Apple leapfrog existing Kings of any space. Relative to the claim of "100 million sign ups", all Apple has to do is to get people to use it ONCE (which, in a free trial seems pretty easy). One user one time will count as a sign up. It doesn't matter if the app itself is total crap for the purposes of achieving the PR spin claim of "100 million sign ups".

Or, more simply, did you ever try Apple Maps? Even one time? If so, you could conceptually count as an Apple Maps user for the purposes of spinning total Apple Maps users.

I've used Apple Maps. I really wanted to like it, but I found it to be inferior to Google Maps, which I use on a daily basis.

As for Apple Music, it looks great after seeing the keynote and I will definitely try it out for the free trial, but I think the actual measure of success in this case is converting from free users to pay users. I am a firm believer that streaming is the way to go, but I will not claim that because it's Apple they have hit a home run before they even enter the ballpark.

 

[Thunderhawks]

Am I the only one who really doesn't care about another steaming service even if it is from my favorite company?

And to add I went on record saying the new macrumors site was a better design but now I change my mind. It sucks

No, there are millions within the 100 millions they want, who say:

Streaming shmeaming!

From a teenager who anxiously taped new music every Wednesday from a special show and got annoyed that the DJs would talk into the music to becoming an Album buyer , replacing those into CDs , then replacing cds into mp3s, to be up with the latest music became less and less important as life piles other stuff onto you.
Used to know every title every band/singer, lyrics etc. label it appeared on, even song length.
Never forget The Box Tops: The Letter only 1:51 (in my memory umpteen years later).

Just don't need streaming and certainly wouldn't bother anybody telling them what I listen to.
Who really cares what other people listen to?

Following an artist, nope.

All for $ 9.99, nope.

Never heard of most of the top 10 titles. Getting older and whats important changes.
Have a Sirius subscription and can't even get to use all of what is on there.

My 85 year old mother always says if she doesn't like something: It's not for me!

I guess it's all by target group

As for MR: Redesign for redesign sake. It 's definitely not better.
Takes up too much space on the screen.

 

[Tech198]

content means all. Which means, signing more deals.

If the music i want to listen to isn't available on iTunes, why would it be on this streaming service ?