Apple unveiled its music streaming service – Apple Music – a little over a month ago and claims to have already got 11 million trial users, 2 million of whom have opted for the company’s family plan.
The company unveiled Apple Music on June 30 with individual access costing $9.99 while the family plan for $14.99 gives six people access to the service. In India, the company has undercut the cost of the service which comes in at just Rs 120 and Rs 190 per month.
If Apple were to convert all its current trial users to paying customers at the end of the three-month trial period, the company will boast of almost half of rival Spotify’s paying user base.
The announcement comes on the back of Apple’s share price falling nearly 14% from its $134.54 high on April 28, causing the company’s value to fall by a massive $115 billion. Investors are concerned that sales of iPhones in the US have hit saturation point, while growth in China is being impacted by strong competition.
Apple’s revenues are driven by hardware sales, however, the company is working on ways to increase app store revenues, especially in developing countries. Not only is the company using Apple Music as a way to attract buyers, it has also dropped the minimum price of apps to just Rs 10.
The iTunes store is still an Apple financial powerhouse, however, with music streaming quickly gaining popularity, Apple Music is the definite way forward. Further, people are seen as willing to pay for music streaming services rather than opt for ad-based services as long as they’re easy to use and offer unique features.