Apple's move into the music subscription streaming scene will shake up the industry and make subscription streaming even more important for the music industry, according to new data from Futuresource Consulting.
Apple Music offers music lovers unlimited streaming of over 30 million songs for $9.99 per month, or $14.99 to allow six people to share the same account. With a long three-month trial available, Futuresource's entertainment analyst David Sidebottom will entice many users to at least try out the service, and that with so many options now available, more and more users will be flocking to one of these streaming services.
While subscription streaming only accounts for 16% of all music spending at the moment, Futuresource says that by 2016, this number may be as high as 33%.
On the Apple Music service itself, Futuresource's analysis shows that people are choosing it because of the ability to play music in offline mode, to discover new music and to listen to music on their smartphones.
"The Living with Digital report also demonstrates a wide variety of tastes and preferences across different regions. 45% of UK streaming subscribers cite being able to listen to tracks offline as a reason to subscribe, compared to only 21% in France. In the USA and UK, 45% would subscribe to discover new music, compared to just 26% in Germany. In the USA, 90% of 16-25 year old smartphone users use their smartphones to listen to music," the Futuresource report states.
"The launch of Apple music is another part of the audio renaissance we are currently witnessing," says Sidebottom. "It is unprecedented, making its success difficult to predict, however the service could potentially hit tens of millions of users almost instantly, and many users will likely be drawn by the three-month free trial period."
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