Apple Music has a respectable 6.5 million subscribers right now, but respected music business analyst Mark Mulligan estimates that Apple’s streaming music service will come close to hitting 8 million subs by the end of this year — and a massive 20 million paying customers by the close of 2016.
In a new report with his predictions for next year, Mulligan observes how Apple Music, “went from zero to the No.2 streaming service in a matter of months in mid-2015.”
While Apple Music still won’t overtake Spotify if it hits the numbers Mulligan thinks it will, it will definitely widen the gulf between the top services available and the various also-rans out there. As I noted earlier today, it also stands to benefit from the increased royalty rates free ad-supported services will have to pay — which could make things tougher for companies without the deep pockets Apple has.
“The wildcards in the equation are whether Apple can do a better job of pushing users from iTunes Radio to Apple Music and what happens when Spotify restates its subscriber number to reflect the impact of $1 a month 3 month trials,” Mulligan continues.
Along with the fact that Apple Music has the advantage of coming preinstalled on the iPhones and iPads of all Apple customers, Cupertino’s streaming music service is also helping to set itself apart with the sheer number of exclusives it is making available. This week, Taylor Swift (yes, that Taylor Swift, who previously criticized Apple) announced that she is making her new concert movie, The 1989 World Tour Live, available exclusively on Apple Music.
Are you currently an Apple Music subscriber? What do you think the company needs to do to ensure it hits the 20 million subscriber figure by 2017? Leave your comments below.
Source: Music Business Worldwide