Ap­ple Mu­sic hits a rough note as 48pc tune out of its ser­vice

The Pak Banker - - COMPANIES/BOSS -

DELHI: Looks like Ap­ple Mu­sic has hit a rough note. De­spite the fact that it is free of cost for the first three months, 48% of peo­ple who tried Ap­ple Mu­sic are not us­ing the ser­vice any­more, ac­cord­ing to the latest re­search con­ducted by Mu­sicWatch.

The com­pany that pro­vides an­a­lyt­ics data for the mu­sic in­dus­try re­vealed this in its Mu­sicWatch sec­ond-quar­ter re­port re­leased in Au­gust 2015. The study mea­sured trial, aware­ness and use of Ap­ple Mu­sic across a rep­re­sen­ta­tive sam­ple of US con­sumers. Ac­cord­ing to the re­port, nearly two-thirds (64%) of cur­rent users said that they were ex­tremely or very likely to pay to sub­scribe to Ap­ple Mu­sic af­ter their free tri­als end. On the other hand, 61% re­ported that they had al­ready turned off the auto-re­newal op­tion in their iTunes ac­count set­tings.

In other find­ings, 77% of Ap­ple's iOS users in the US are aware of Ap­ple Mu­sic, and 11% re­ported they are cur­rently us­ing Ap­ple Mu­sic. The us­age level is sim­i­lar among con­sumers who pur­chase mu­sic from iTunes or use iTunes to man­age their mu­sic col­lec­tions. Among users of iTunes Ra­dio, Ap­ple's ear­lier mu­sic stream­ing ser­vice, 18% were lis­ten­ing to Ap­ple Mu­sic. Launched on 30 June, Ap­ple Mu­sic was aimed at lur­ing away mu­sic lovers from com­peti­tors like Spo­tify and Pan­dora, but Mu­sicWatch's re­port shows that only 11% of Spo­tify free users and a mea­gre 6% of Pan­dora users have given Ap­ple Mu­sic a shot.

"In terms of bench­mark­ing Ap­ple Mu­sic, 40% of iOS users are buy­ing dig­i­tal down­loads from iTunes, sug­gest­ing trial of Ap­ple Mu­sic could be higher," said Russ Crup­nick, man­ag­ing part­ner of Mu­sicWatch, in the com­pany's press re­lease. "That's the disad­van­tage of not be­ing the first mover in a mar­ket where very good ser­vices cur­rently ex­ist." Out of those sur­veyed, only a small per­cent­age said they had stopped us­ing their online ra­dio, au­dio on-de­mand or video stream­ing ser­vices, as a re­sult of us­ing Ap­ple Mu­sic. The ser­vice is po­ten­tially hav­ing a pos­i­tive ef­fect on mu­sic sales, as one-third of cur­rent Ap­ple Mu­sic users said they had been en­cour­aged to start buy­ing dig­i­tal tracks and al­bums, or to buy more, as a re­sult of us­ing Ap­ple Mu­sic. Very few of the users sur­veyed claimed to have stopped buy­ing down­loads al­to­gether. Ap­ple Mu­sic's live ra­dio sta­tion Beats 1 is be­ing used by 30% of Ap­ple Mu­sic stream­ers, while Con­nect, which lets artists share news, songs, photos and videos with sub­scribed fans, has 27% us­age. The re­port couldn't have been more ill-timed, com­ing as it does close on the heels of Ap­ple's an­nounce­ment that the Mu­sic ser­vice now boasts of more than 11 mil­lion cus­tomers.

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