Apple “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,” Hugh McIntyre writes for Forbes. “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.”
“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,” McIntyre writes. “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.”
Read more in the full article here.
MacDailyNews Take: Imagine how quickly iTunes Store download sales will drop when virtually all of the music becomes free for three months on June 30 in over 100 countries? Oh, there will be some who continue to buy, but nowhere near the numbers today. How many of Spotify’s 20 million paying users will cancel, at least for three months, with the world’s largest library available for free via Apple Music? Many.
iTunes Store currently dominates the paid download market with some 85% share. That market gets significantly smaller in eleven days. The Apple Music streaming service, especially with a three-month free trial, will radically disrupt the music industry virtually instantly. The revolution is only eleven days away! The entire music industry is holding its collective breath.
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