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Apple Music and the Crowded Music Streaming Arena

With Apple coming onto the music streaming scene at the end of June, it was hard to see them succeeding in such a crowded streaming market, as Spotify could already claim over 2o million paying users. Not to mention the many other services which already had a solid hold on their respective users, such as Pandora, Tidal, iHeartRadio, just to name a few. These services had a “serious head start” on Apple Music. Apple Music now (at the time of the article) 4 months later is not very close to catching Spotify with their 20 million subscribers, but the company has made a solid push with Apple claiming they now have 6.5 million subscribers, “not a bad start”. Many users who are paying users now, have just recently come off their 3 month free trial initially offered by Apple to get at least some users who were already invested in other music services to try Apple Music.

While Apple may not be reaching Spotify’s numbers anytime soon, it may not even matter for the tech giant. “Apple is under little pressure to show quick returns,” as its size, resources and overall success as a company may give the company an edge in the music streaming industry as well. As the article puts it “Apple doesn’t have to win right away-which is why it will ultimately win.” Thinking back to the beginning iPod days, it is obvious Apple knows music and it will have to develop a top notch music service, even if it doesn’t claim the entire streaming market right away. Apple has the resources and money to continue to negotiate deals with some of music’s top artists, as its already done with artists like Drake and Taylor Swift, while its number of paying subscribers continues to grow. Apple’s competitors seems to be a lot more afraid of Apple than Apple does of them. Apple Music’s future does not necessarily rest with the music itself, but rather with the success of Apple’s other products and services such as phones, tablets, and TV. The main point is: because Apple is not dependent on its music streaming service for its success as business, it makes Apple Music that more likely to succeed.

This article relates very nicely to our discussion on how products, decisions and information spread through social networks. Apple entered a market of music streaming that was not only crowded but dominated by Spotify. We discussed in class and in homework ways to get an initial group of followers (subscribers) for a new service or product. One of the strategies we discussed was initially offering the product for free. This is exactly what Apple did with their 3-month free trial, helping them to gain the 6.5 million subscribers that they reported having as of October. In addition to the free trial Apple also has Taylor Swift and Drake promoting their service, two very influential artists who are sure help them gain subscribers. This is another strategy we discussed in class: getting influential users (or in this case artists) to help spread your product and increase its popularity. It is yet to be seen whether Apple is the superior music streaming service, but with its free trial, influential artists and overall power as a company, it will be known soon enough whether Apple will take over the music streaming industry.

http://www.wired.com/2015/10/apple-doesnt-need-apple-music-to-win-which-is-why-it-will/

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