Subscription Streaming to Account for One-Third of Consumer Music Spend by 201630 Jun, 2015 By: Erik Gruenwedel
Apple Music projected to spike interest in music streaming
With the June 30 launch of Apple Music, subscription streaming services are projected to generate 33% of total consumer music spending by 2016 — up from 16% in 2014, according to new data from Futuresource Consulting.
Apple Music bowed offering access to 30 million songs for $9.99 a month. A $14.99 option enables up to six people to access a single account. The service is also offering a free three-month trial period, which is 30 days longer than Spotify and two months longer than Google Music.
Apple Music, which offers “Beats One” radio featuring a DJ instead of an automated playlist, enables subscribers to upload 25,000 of their own songs.
Futuresource said about 45% of music streaming subscribers in the United Kingdom cite being able to listen to tracks offline as a reason to subscribe, compared with only 21% in France. In the United States and U.K., 45% subscribe to discover new music, compared with just 26% in Germany. In the U.S., 90% of 16- to 25-year-old smartphone users use their smartphones to listen to music. Around 40% of tablet and smartphone users stream music from those devices to other audio hardware, such as wireless speakers.
“The launch of Apple music is another part of the audio renaissance we are currently witnessing” entertainment analyst David Sidebottom said in a statement. “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.”