Cricket Wireless did this to great success. Over 2 million subscribers to its Muve Music by bundling it to its Android Smartphone rate plan.Invites are out, and it’s official. Uncarrier 5.0 is coming in June. T-Mobile today sent out invites to select members of the press to join them in Los Angeles on June 18.
Muve Music Surpasses Two Million Subscribers in U.S.
The music labels are willing to give a BIG discount to carriers who bundle it (free) with their rate plan. Cricket Wireless paid the music labels approximately $2.50 per subscriber per month.
The answer is simple. Not all subscribers who have it use it (see the 55% number below). And by bundling, the music industry will have 30 million plus subscribers from T-Mobile.
But not all Muve Music subscribers actively use the service. As noted in a recent Billboard magazine article, just 55% of Muve Music subscribers used the service in May, the latest period for which Billboard was given a figure.
Imagine this scenario:
200 million paying subscribers because T-Mobile, AT&T, Verizon, Sprint all bundle music to their smartphone plans. Each subscribers will cost just $2 a month.
$2 x 200 million x 12 months = $4.8 billion trade revenue.
The trade recorded music revenue in the USA was $4 billion last year. This is downloads, CD, streaming. Trade revenue is the revenue the music labels get.
Look at AT&T $15 a month for 5 lines Beats Music plan. That's $3 per line. T-Mobile is taking it another step forward and following Cricket Wireless's Muve Music example. T-Mobile might pay as little as $2 per smartphone line. This is the holy grail for the music industry, having all the major carriers bundle music ($2 per smartphone line). T-Mobile success in this will force the other carriers to response.