Apple Music is the company’s latest foray into a new market, combining music streaming (a la Spotify), music purchases, song recommendations and ‘traditional’ radio hosted by real-life DJ’s.
The results are yet to come in completely — Apple Music was only launched in June — but it is likely to be a very mixed bag and one that could damage the company’s reputation if it ends badly.
Apple announced earlier in August that 11 million people signed up for an Apple Music free trial, but a new analysis by MusicWatch, a consumer research company focused on the music industry, found that only 11% of Apple’s customers are using Apple Music despite almost three quarters being aware of its existence. The 11% figure remains unchanged when looking at users who previously made purchases on iTunes and only increases among those who used iTunes Radio, a feature that preceded Apple Music, to around 18%.
There is some good news, however. Almost 30% of those who pay for Spotify Premium (a service which costs £10 a month) use Apple Music and may, when their three month free trial expires, switch services (Apple Music also costs £10 a month). Additionally, of all Apple Music’s users, 64% said they would consider paying for the service after their trial expires, while 61% said they had turned off the automatic renewal process but would still consider paying after three months.
The data is worth taking with a pinch of salt as it will be at least another six months until we start to see who is using Apple Music and in what quantity people are doing so. Spotify has a fairly large hold on the streaming market at present but things could change as time goes on.
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