My Thoughts on Technology and Jamaica: @AppleMusic 11 Million Trial users means 100 million Subscribers by 2016 versus @Spotify and @TIDALHiFi

Thursday, August 6, 2015

@AppleMusic 11 Million Trial users means 100 million Subscribers by 2016 versus @Spotify and @TIDALHiFi

“For many people outside of the US (Apple Music launched in 100 countries), you still have to explain what it is and how it works. Beyond that, there's still the issue of winning over millennials, who never pay for music, by showing them you're offering something that will improve their lives. And finally, there are people out there who I think understand its value, but we still have to go out and get them”

Apple executive Jimmy Iovine in an interview with USA Today on Thursday August 6th 2015 on Apple’s 11 million Trial users.

It's only been a two months since the launch of Apple Music, the real highlight of Apple's WWDC (World Wide Developers Conference) held earlier on Thursday June 2nd 2015 as reported in my Geezam blog article entitled “Apple WWDC 2015 debuts OS X 10.11, Watch OS 2.0 and Apple Music”.

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Apple's Senior Vice President of Internet Software and Services Eddy Cue, made this known in an interview with USA Today as reported in the article “Apple Music hooks 11 million trial members, App Store has record July”, published August 6, 2015 by Marco della Cava, USA Today

Apple Music – The Spotify alternative that looks a lot like Spotify

Apple Music was launched on Tuesday June 30th 2015, but not without a little bad blood from Taylor Swift as reported in my blog article entitled “@TaylorSwift13 and Vinyl – Why Female Hipsters diggin’ her New Groove as Vinyl Sales Rise”. 

Those 11 million trial subscription aren't paying customers; they're just trying out the service, as they're not sure if they want to pay or not.

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Apple Music service charges aren't that different from Spotify, another Music Streaming service that Taylor Swift had a beef with back in November 2014 as reported in my blog article entitled “@TaylorSwift13 leaves Spotify – How Spotify’s continues to give 37.5 million users Globally Free Music who need to pay for Music Streaming”.

If you decide to jump onto the Apple bandwagon, the charges are as follows:

1.      US$9.99 per month for an Individual plan
2.      US$14.99 per month for a Shared Family Plan (6 people)
3.      24/7 radio station called Beats 1
4.      Connect Social Networking that allows musicians and their fans to meet

So with such a sweet deal, it explains the large number of trial users? But will they become dedicated users eventually?

Apple Music 11 Million Trial users – Spotify has Apple in their Rear View Mirror

Apple's Apple Music Manager Eddy Cue also was quick to point out it wasn't just freebies; some 2 million people have already subscribed to the US$14.99 Shared Family Plan.

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Apple has some 800 million iTunes subscribers. With more iOS devices being sold and so many loyal iTunes subscribers, it's hoped they'll just upgrade to Apple Music instead of jumping on the Spotify Bandwagon. 

Additionally, by offering Apple Music streaming, they also hope to attract more persons to buy Apple Products. This might not work out as planned, as Apple's Apple Music Manager Eddy Cue wasn't too clear on demographics i.e. Age, gender, location and whether they were mainly New Apple customer or iTunes converts. 

Still, these are impressive stats, when compared to Spotify, their closest rival who have been Growing Strong as reported in “Spotify gathers users, cash as battle with Apple Music looms”, published June 10, 2015 by Don Reisinger and Joan E. Solsman, CNET News.

According to the article, in May 2014 Spotify had:

1.      10 million paid subscribers
2.      40 million active users

By December 2014, Spotify had:

1.      15 million paid subscribers
2.      60 million active users

Currently Spotify now looms large as they have:

1.      20 million paid subscribers
2.      75 million active users

To put that in perspective, if Apple could convert their 11 million trial users into paid membership, they’d be 50% of the way to beating Spotify. Apple clearly has Spotify in their sights, and they’ve got come serious Ad campaigning ahead, with billboards, TV spots and Radio Ads.

Apple Music coming to Google Android – 100 million Subscribers by 2016

Their Apple Music for Google Android which they promised at Apple WWDC will be launched very soon, expanding their reach. 

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I’m a bit skeptical, though, that they can beat Jay Z’s Tidal Music Service which is basically an army of Music Celebrities pushing HD Audio Streaming as explained in my blog article entitled “Jay Z's US$19.99 Tidal HiFi launched with Artiste Backing - How HD Audio Quality Music selected by Artiste will turn the Tide”.
With that kind of marketing muscle, 100 million subscribers will be a tall order for the Cupertino Kids who like to Think Different. Most likely, that growth spurt will occur when Apple Music spreads to Google Android Land!!!

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