Apple To Launch A Spotify-Like Service this year?

Discussion in 'Apple, Inc and Tech Industry' started by EbookReader, Apr 15, 2012.

  1. EbookReader macrumors 65816

    Apr 3, 2012
    A few weeks ago, there were a rumor going around that Apple would launch a Spotify-like service. It turned out to be false alarm. But it's just a matter of WHEN not IF when Apple launch it (iStream perhap?).

    why is it likely?

    Spotify success: It grew from 1 million to 3 million paid subscribers in a space of ~10 months (March 2011 to Jan 2012). It is expected/projected to make $889 million in revenue in 2012. (2011 revenue was $249.1 million).

    January, 2010:------------ 250,000 paid subscribers
    March 17, 2010:----------- 320,000
    July 20, 2010: ---------------- 500,000
    December 8, 2010: ------ 750,000
    March 8, 2011:--------------- 1,000,000
    July 14, 2011: -----------------1,600,000
    Sept 21, 2011: ---------------- 2,000,000
    Nov 23, 2011: ------------------2,500,000
    Jan 26, 2012: -------------------3,000,000

    Revenues, 2011: $249.1 million
    Revenues, 2012 (projected): $889 million USD

    That's A LOT of growth right there.

    In addition,

    Spotify already overtook Itunes in Sweden (84% to 16%, (Norway too if I remember correctly) and Spain.

    It is on track to overtake Itunes in France within 18 months.

    All the more reasons why it's a safe bet that Apple is working on a Spotify-Like Service.

    What do you think of the name iStream?

    All of Spotify's $10 premium subscription memberships is done through smartphones. The iphone is Apple's gateway into the music subscription business, especially if the Big Carriers like Verizon, ATT, Sprint bundle the Apple music subscription service.

    That's why I put this topic in the iPhone Forum. It's the most appropriate I think.
  2. gdjsnyder macrumors 6502a


    Apr 19, 2010
    Swoyersville, PA
    While I think it would be a good move on Apple's part to do this, there have been countless rumors about them launching a Hulu+ competitor, as well as a Netflix competitor. Neither has happened, so while it may happen, I don't put too much stock into rumors like these.
  3. EbookReader thread starter macrumors 65816

    Apr 3, 2012
    But Itunes is the leader in music. That's the different. (Itunes wasn't #1 in the Netflix/Hulu+ for tv shows/movies).

    Subscription music has a very good chance of overtaking Itunes within a few years at the current growth rate.
  4. swingerofbirch macrumors 68040

    Oct 24, 2003
    The Amalgamated States of Central North America
    I like Spotify a lot, mainly because you can't lose your music. If I had something like Spotify back when I first started collecting music (back in middle school), I'd have an amazing library now. As it is, I've had so many different computers since then, and I'd like to think all of my music is somewhere (scattered across tens of hard drives), but it's a pain to find and amalgamate it all. It's not that I want those actual files—I'd like the playlists—a record of which music I enjoyed throughout the years. With Spotify, if a computer breaks down, you just install Spotify, sign in, and all your music is there.

    I know Apple is making inroads with allowing you to redownload your music, but Spotify has other advantages, in terms of allowing easy music discovery without having to buy something to see if you'll like it, and sharing playlists. I think it's a pretty good model because you don't lose anything even if you decide not to pay, you just have to listen to ads.

    I only use iTunes for movies and podcasts now, not music. In fact sometimes when I go into iTunes I forget you can't double-click on a playlist to start playing music because I've become so used to the Spotify way of doing things. I use Spotify every day, which I used to be able to say of iTunes.
  5. jeffe macrumors 6502a

    Feb 17, 2008
    I've been using subscription music for years starting with Yahoo Music when it still existed. Its starting to become mainstream which is great, however, the funny thing is music prices are starting to drop real quick with the new cloud music stores.

    For the first time in a long time, I'm having a hard time not purchasing albums as they go on sale for 2.99, 3.99 or 5.00...with songs as low as 20 cents. Pretty soon, I imagine my music collection will be equal to what I'm using through the subscription services...and at that point, I may just cancel my subscription and keep buying one or two albums each month to grow a collection I actually own.

    In the long run - I think its the right move b/c these services could quickly start raising rates as they become more popular. IIRC, spotify has yet to make a profit despite it's growth.
  6. EbookReader thread starter macrumors 65816

    Apr 3, 2012
    Wow. What stores sell "popular" albums at $2.99/$2.99 or $4.99?

    I would love to get in on that...
  7. jeffe, Apr 16, 2012
    Last edited: Apr 16, 2012

    jeffe macrumors 6502a

    Feb 17, 2008
    Google play is currently having a one day $2.99 sale.
  8. EbookReader thread starter macrumors 65816

    Apr 3, 2012
    So you have to wait and maybe get lucky that the album of the day at $2.99 is one you like?

    I'll stick with Spotify.
  9. EbookReader thread starter macrumors 65816

    Apr 3, 2012
    New “Listen” Button On Facebook Musician Pages Instantly Plays Their Songs



    And for most people, it will open Spotify when you click "LISTEN"

    The longer Itunes/Apple wait to launch iStream, the more Spotify will be entrenched.
  10. dontwalkhand macrumors 601


    Jul 5, 2007
    Phoenix, AZ
    Yay it may happen, but like A LOT of the other unannounced Apple services we won't see it for quite a long time...probably in 2020-2025
  11. EbookReader thread starter macrumors 65816

    Apr 3, 2012
    by 2020-2025, subscription music will have left legal download music in the dust.

    It is already happening. By then, it will be way to late.

    Sweden: Spotify 84% ---Itunes 16%
    Spain: subscription is already more than 50% (legal downloads less than 50%)
    France: subscription music is poised to overtake legal downloads in 18 months
  12. TwoBytes macrumors 68030


    Jun 2, 2008
    I would love apple to do this and subscribe instantly.
  13. Pheelyx macrumors regular


    Oct 22, 2007
    Brookland, AR
    I love my sub to Spotify. But I would subscribe to an Apple version in a heartbeat. But I suspect that Apple will not be allowed to offer subscription music until iTunes purchases drop substantially. The music labels won't allow it. They always let all the other companies do amazing things with music or movies but keep Apple locked into the same old way of doing things. Once subscription music overtakes individual purchases in the US, we might see this change.
  14. EbookReader thread starter macrumors 65816

    Apr 3, 2012
    got a source for this?

    All the music executives are excited about the potential of subscription music. It offers them much better revenue.

    $10 a month = $120 a year from each paid subscriber.

    They would love to see Apple join the fray.
  15. EbookReader, May 18, 2012
    Last edited: May 18, 2012

    EbookReader thread starter macrumors 65816

    Apr 3, 2012
    Spotify is valued at $4 billion

    I wonder what the value of Apple's iStream would be when it debuts...especially with Itunes having over 200 million customers.

    Potential names:

    iStream (my favorite)
    itunes Unlimited

    The sign-up in the first month would be massive. Will work with Iphone, Android, Ipod Touch, Ipad etc...
  16. anti-microsoft macrumors 68000

    Dec 15, 2006
    Edinburgh, Scotland
    I don't think Apple necessarily needs to offer a subscription model for iTunes, I think what they need to do is to embrace social networking. They need to make it easier for people to share links to songs, what they're currently listening to, integrate Genius in a social scene (friend recommendations, etc.)...

    iTunes could potentially become irrelevant with the rise of subscription services if it push itself to stay relevant. People use iTunes because of it's tie with iPods and iPhones, I think that's one of the reasons the majority of people use it. iTunes is a recognised and strong brand and household name. As I said, it needs to keep up with the "innovation" happening in the media app business.
  17. EbookReader thread starter macrumors 65816

    Apr 3, 2012
    As for royalties

    $0.00450 per stream ($3,376 for 750,000 total streams)
    $0.00579 per stream ($0.65412 for 113 total streams - August/Sept 2011)
    $0.00870 per stream ($0.3219 for 37 total streams - Sept 2011)
    $0.00726 per stream ($2.5549 for 352 total streams - July 2011)

    Assume $0.0055 payment per stream.

    $1.29 Itunes download x 70% = 164 Spotify streams x $0.0055
    $0.99 Itunes download x 70% = 126 Spotify streams x $0.0055
  18. adztaylor macrumors 68000

    Aug 20, 2009
    Preston, UK
    I love Spotify and I'm a premium member. But if Apple came out with their own version I would jump ship instantly.
  19. matttye macrumors 601

    Mar 25, 2009
    Lincoln, England
    It's clearly a brilliant idea, but Spotify appeals to so many because of its' value. £10 for unlimited music on up to five devices is incredibly good value. Apple probably won't be able to sell their service for a much higher price. Spotify already integrates well with ios devices so Apple can't use that to their advantage either.

    Even if Apple provided higher quality music, most people wouldn't notice the difference anyway! Especially with the "extreme" quality streaming on Spotify on iOS devices.
  20. EbookReader thread starter macrumors 65816

    Apr 3, 2012
    Spotify Revenue:

    2008: $0.612 million USD
    2009: $18.1 million USD
    2010: $99 million USD
    2011: $236.4 million USD
    2012: projected at $889 million USD

    Spotify Valuation:

    February 2011: $1 billion valuation
    May 2012: $4 billion valuation
  21. EbookReader thread starter macrumors 65816

    Apr 3, 2012
  22. nuckinfutz macrumors 603


    Jul 3, 2002
    Middle Earth
    I think Apple would be foolish not to deliver a streaming service.

    They just need to find out how to leverage their ecosystem to make this work for all parties involved.

    I like the flexibility of iTunes Match and adding a streaming service audio makes total sense.
  23. EbookReader thread starter macrumors 65816

    Apr 3, 2012

    spotify pays about $600 mil in 2012 (if it's $895 mil revenue projection is correct).

    Itunes is skill King by a long way at $3.2 billion.
  24. nuckinfutz macrumors 603


    Jul 3, 2002
    Middle Earth
    What took you so long? I was waiting for you to update this thread.

    Spotify is a ways away but they're closing in on a billion in revenue and I know of few publicly traded companies that don't want to add a billion in revenue to their bottom line.

    I still contend that Apple would be foolish not to get into streaming music. Steve Jobs was NOT correct. Not all people feel a desire to own music.
  25. EbookReader thread starter macrumors 65816

    Apr 3, 2012
    People don't own movies/tv shows with Netflix/Hulu but they both gain popularity.

    Look at Cricket's Muve Music. They offer something like $65 for unlimited talk, text, data AND unlimited music downloads on an Android phone. (I wonder if Muve Music will come to Cricket's iphone too).

    And Muve Music has over 600,000 paid subscribers in the USA in just 1 year. The company has about 6 million wireless subscribers so that's 10% of their installed base.

    Imagine ATT or Verizon doing their own "Muve Music."

    Between the two, they have something like 180 million subscribers. 10% of that would be 18 millions.

    To put things into perspective, Spotify currently has around 3.5-4 million paid subscribers.

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