While Apple is preparing for the re-launch of its Beats acquired streaming service, a new survey by Midas has revealed just how ground-breaking the service could be for the music streaming industry.
The new service has been made possible by Apple’s acquisition of Dr Dre’s Beats Music business, which was announced in 2014; if the success of Apple’s music streaming goes as the survey indicates, then it is predicted it could become the largest service of its kind in the world in a relatively short period of time.
Midas interviewed 1,000 consumers; 39% of the participants stated they would be willing to pay $7.99 for the service and 10% stated they were likely to sign up. Midas states that if just 15% of Apple’s iTunes users subscribe, Apple would soon have a subscription base of 75 million.
However, Apple’s first challenge will be winning customers back to its music service. Many music fans have now headed to the likes of Spotify to get their music downloads; and as Mark Mulligan, who authored the report, stated:
“Apple has lost a lot of its most valuable download buyers to services like Spotify, Rdio and Rhapsody and it will expect to ‘win back’ the digital music spending of some of those consumers. It is no coincidence that this will likely be Apple’s first app developed for Android. Thus the near term impact of an Apple subscription service could be as much about switching existing subscribers as growing the market.”
As well as rival subscription channels, there is another factor that might stop Apple from dominating the music streaming market, at least to begin with. While consumers have indicated they are willing to pay $7.99, The New York Times reported a higher price point of $9.99 has already been suggested, and this extra cost might be off putting for some would-be subscribers.