Since Apple Music burst onto the music streaming scene in June 2015, conversations about who would take the market share have been rife. Sweden-based streaming service Spotify launched nearly eight years ago and have had the benefit of time on their side. As of September 2016, they were reported to have 40 million paying subscribers worldwide. Pretty impressive right?
A little over a year after it’s launch, tech giant Apple have accumulated 17 million paying members. While this numerical comparison may appear to show a clear winner, it’s a little more complicated than just looking at paid subscriber numbers. Consider for a moment that it took six years or Spotify to report 10 million paid subscribers. Apple Music achieved that number in just six months! Spotify’s financials also show a slightly different perspective on things. While their 2015 revenues showed an impressive 81 percent growth to $2.2 billion, the company lost $193 million, an increase in losses of almost 7% percent. An article I read earlier this year summed this up by saying “No Seriously: Spotify are the best streaming service at losing money” ….Eeek, not looking good Spotify!
While these sorts of things don’t usually matter to the average consumer, there are a few other things that Apple are doing to take the market by storm.
Apple knows how to appeal to the young
They always have – just look at their product history and marketing campaigns. But more recently the company have made plans to make their music-streaming service more attractive to students, offering the subscription at half the price. So rather than the $10 / £10 per month standard customers pay, students will only have to pay $5/ £5 per month, automatically making it a much more attractive option compared to Spotify – I mean what student wants ads jumping in right when they’re getting into the pre-drinks party mood?!
Apple are always looking forward to the next big thing
For a while now rumours have come and gone about Apple leading the way into high-resolution audio. Now, while not everyone is loving the removal of the headphone jack on the new iPhone 7, there’s said to be good reason behind this. Not only does it enable a thinner, sleeker looking phone, music streamed via a headphone jack wouldn’t enable hi-res audio, whereas listening via the lightning connector would. If apple do go in the way of bringing hi-res music technology into the world, this will probably become yet another way of bringing new subscribers onboard.
Apple supports artists and secures exclusives
Despite the fact Apple and Spotify’s music catalogues are very similar in size with around 30 million
songs each, Apple seems to be paying higher royalties and taking continuous steps to secure more exclusive releases than the competition. Take for example, the highly anticipated Frank Ocean album ‘Blonde’, Drake’s album ‘Views” or Taylor Swift’s entire discography. On top of the exclusive album releases, Apple invests millions in well-thought out content-filled campaigns in which they collaborate on things like videos, interviews and ads. Frank Ocean’s album rollout included a film and live-stream, and Taylor’s 1975 album had a fully produced concert filmed on a rooftop in LA.
So if you’re undecided about which streaming service to join, I recommend enjoying the best and latest content out there on a platform that’s continuously developing. For now, that happens to come from Apple and I can happily say that I’m comfortable giving away £10 a month to a streaming service that achieves all of the above and has a history of leading the way in technology.
If you have a different opinion, I’d love to hear it! Let me know in the comments 🙂