Tech giant Apple Inc. (NASDAQ:AAPL) is set to reveal its new music streaming service at a developer conference in a week’s time.
The move is fueled by the drop in its music download sales and the need to compete with the rival firm, Spotify. It is also a result of the shift to streaming services. Apple is trying a second go at the music business. In 2003, the company introduced its iTunes music store as a service where users could purchase music. The service enjoyed enormous success and was offered great benefits to the Music industry.
Apple will launch its new streaming service in a developer conference come next week. The introduction is designed as a turning point for the company’s music venture business that has not been doing so well.
Granted, the shift to a streaming service is quite late especially for Apple’s standards, but the company has always benefitted from a loyal following. It can use this to its advantage by pulling its iTunes subscribers over to the new streaming service.
Sources reveal that Apple’s streaming service will include $10 monthly subscriptions which will allow users to access a wide variety of music. Apple might also include live DJ hosted radio shows and will also target ads among other extra services.
Apple Inc. (NASDAQ:AAPL) has a long way to go if it plans on overtaking Spotify, but it is not entirely impossible. Sure Spotify has a massive following and is well established as a streaming service. Additionally the service has plans to include video streaming, but it does not have a solid business strategy compared to Apple’s upcoming service.
If Apple manages to attract its iTunes following into the new service, which might provide a reason for Spotify to be concerned. In April, Apple reported that 110 million individuals purchased music over iTunes. Signing up for the streaming service might be a cheaper alternative option because users will spend less for more music.
Average iTunes users spend more than $100 on music downloads. Apple plans to use the streaming service to complement iTunes and add to its revenues.
