Move over Pandora, Spotify and Tidal. Apple is ready to challenge you for a slice of the streaming music pie. Apple made the announcement yesterday at WWDC, reported The Verge. It will launch Apple Music on June 30 in 100 countries, first on Apple devices and on Android and Apple TV later this fall. The service will cost $9.99 a month for one person, or $14.99 for a family plan of up to six people.
“We’ve had a long relationship with music,” said Tim Cook, CEO of Apple. “And music had a rich history of change, some of which we’ve played a part in.”According to Apple’s June 8 press release, Apple Music will include a live, worldwide radio station – Beats 1 and Apple Music Radio – broadcasting around the clock, along with a diverse collection of music, curated playlists, and customized playlists created by Siri® for those using Apple devices. Subscribers will be able to combine all of their music in one place, including the new Apple Music service as well as music purchased from the iTunes Store and ripped CDs.”We love music, and the new Apple Music service puts an incredible experience at every fan’s fingertips,” said Eddy Cue, Apples senior VP of Internet Software and Services. “All the ways people love enjoying music come together in one app – a revolutionary streaming service, live worldwide radio and an exciting way for fans to connect with artists.”In addition to music and radio programming, Apple Music will include Apple Music Connect, a way for artists to share lyrics, backstage photos, videos, new releases and more. Fans can comment on artist posts and easily share via messages, Facebook, Twitter and email.At its launch, Apple Music will offer a three-month free membership. Membership will automatically renew at the end of three months, unless canceled, and automatically bill each month unless auto-renew is turned off in account settings.Insider Take:There have been rumors of what Apple’s new streaming music service would look like for months. We are impressed that Apple Music will offer members much more than a streaming music service. It will offer live radio programming as well as ways for artists and fans to connect – features that differentiate Apple Music from similar streaming music services. From a company perspective, this new offering will help Apple become less reliant on music downloads which have been less popular since so many listeners are now listening online.Understanding that some customers may be reluctant to leave competitors, offering a free three-month trial is a good way for Apple to test the market to see how the service will fare. Will Apple’s expansion into the online music marketplace hurt its competitors (see our May 18 post on Rdio)? Judging by its impact on Pandora stock yesterday, it is safe to say the new offering will hurt Apple’s competitors, but we don’t know how serious the impact will be until the service launches.Another key question will be market saturation. How many streaming music services can the market bear – and are there enough consumers willing to pay $4 to $20 a month for their favorite streaming music service? With so much competition for entertainment dollars via subscription services, consumers will have to choose where to spend their time and money.Based on past successes and sheer size, we expect that Apple will do well with its new venture. The question is who will be left in Apple’s wake.
