Apple Surpasses Streaming Giant Spotify

“The worlds most famous and popular language is music” – Psy

As of this week, Apple Music has surpassed Spotify’s paid subscriber count in the United States, making it the number one streaming service in the country. According to Digital Music News, Apple music, with a growth rate of 5% and over 20 million U.S. subscribers, is growing faster than Spotify. However, Spotify still holds the reign worldwide with over 70 million subscribers compared to Apples 45 million.

This is a big win for Apple, but it will be hard to get a global win on Spotify. The majority of iPhone users reside in the United States, so it is easier for them to use Apple Music since it is built into iOS. That being said, Spotify has an advantage on Apple due to it’s free streaming feature. Although they have to listen to ads, Spotify has 170 million users with the inclusion of those who stream for free.

(Source: Gear Patrol)

Apple does have an advantage over Spotify in a couple areas. For starters, Apple Music has 10 million more songs than Spotify. Also, being that Apple is such a giant company, it is easier for them to snatch exclusive albums. For example, Dr Dre’s highly anticipated album, Compton, was only available to be streamed on Apple Music upon release. As Apple releases more exclusive content, it will bring more Spotify users over. Also, with Apple’s upcoming video streaming service, there is rumored to be a package that combines both the music and video services, another source of new users.

To better compare the two, rap star Drake released an album on both streaming services. Spotify advertised the album like crazy, placing the rapper into virtually all their playlists. Unfortunately, their efforts did not pay off as Apple Music users streamed his album, Scorpion, 170 million times to Spotify’s 130 million in the first 24 hours of release. So, although Spotify has more subscribers, they seem to be less engaged with the content.

AAPL up past week, beating the DOW by 1%.

AAPL & DOW (Source: Yahoo Finance)

Apple Stock News: Apple’s HomePod to Rival Amazon’s Echo

Apple Stock News

For the latest Apple Stock News, AAPL closed at $144.09 on, July 7th, 2017. It had a gain of 0.99% from its previous close on July 6th, 2017, at $142.73 per share.

Apple Stock News

(Source: Apple)

Last month, Apple announced the launch of the HomePod. The HomePod is essentially both a state-of-the-art speaker and a smart assistant that is capable of answering user queries. Together with Apple Music, users will have instant access to one of the largest music catalogs in the world, 40 million songs to be exact. Perhaps most impressively, the device is able to sense the room and tune the music all by itself. The HomePod will be available for purchase in December and is accompanied by a $349 price tag.

According to new data from Raymond James, consumers have shown more interest in Apple’s siri-powered HomePod speaker than they did in the Apple Watch when that product was first released. Suggesting that the HomePod will be a bestseller this upcoming holiday season. 14 percent of iPhone owners plan to buy a HomePod according to a research note published by Raymond James. When the financial services firm conducted a similar survey prior to the launch of the Apple Watch, a mere 6 percent of iPhone owners were interested in buying the product. Apple’s “other products” category, which includes the Apple Watch, Beats Speakers, AirPods, and more, increased 31 percent year on year. Raymond James anticipates that not only will this growth continue but that the HomePod could help the category.

The bad news for Apple: the HomePod will compete against existing smart home products including the Amazon Echo. However, a combined 19 percent of iPhone owners plan to buy either a HomePod or a Beats product ahead of the 16 percent planning to buy an Echo. Meaning that Apple actually comes out ahead of the Amazon Echo in regards to consumer purchase intention.

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Apple Stock News: A Look at how Apple Music is Doing

Apple Stock News

Four months after Apple released “Apple Music”,  the silicon valley tech company has already begun to compete with the major music streaming services, Spotify and Pandora.

Apple Stock News

Earlier this week, CEO,  Tim Cook announced that Apple Music had already gotten 15 million subscribers, 6.5 million of which have already signed up to pay. This is particularly impressive when you compare Apple Music to Pandora and Spotify. Pandora has 78 million subscribers, however only around 4 million paying subscribers. Spotify has 20 million paying subscribers,  which makes Apple already one third of the way to being level with them.

Pandora has been  more impacted by the emergence of Apple Music. Pandora  lost 36% of its users in the last quarter alone. Spotify has remained stagnant as they, like Apple,  offer on-demand music, rather than just a radio service like Pandora.

While Apple music is off to a fast start, this doesn’t mean Spotify or even Pandora. When the music service first launched in June, users were offered a free 3 month trial. For many users their free trial will be ending soon, and some will cancel its subscription. There are also only 41 million people in the world who pay to subscribe to music. This means there is still more than enough room for all 3 companies to grow and thrive.

Apple Music is off to a fast start, but it’s goal of dominating the streaming music industry is far from a guarantee.

Apple Stock News: Apple Music Announce 15 Million Users

Apple Stock News

Apple launched its flagship music sharing service as little as three months ago, and with is offered every user a three-month trial period. Tim Cook’s promotional strategy has seemed to have paid off as the service now boats an impressive 15 million user base, out which 6.5 million are paying customer. Cook released this information at the WSJDLive, The Wall Street Journal’s global technology conference.

Apple Stock News

Eddy Cue, who is shadowing the roll-out of the project, said in August that 11 million people were on the trail version, thus according to the figures released, 60% have chosen to extend the trail period and sign up for the paid service. Apple Music still has a long road ahead if it plans to be a market leader in the field, in comparison Spotify, the current leading music streaming service, has 75 million active users and 20 million subscribers.

Cook also used this opportunity to announce that a new version of Apple TV will start shipping at the end of next week. He said that the new device lays the foundation to change the TV viewing experience—even though Apple hasn’t secured all the content deals necessary to match the offerings of cable and satellite providers.

Apple Stock News: Taylor Swift Shames Company Into Paying Artists

Apple Stock News

Apple changed plans on Sunday night not to pay artists during a three-month free trial period for its music streaming service that it would offer its loyal customers. This comes after Taylor Swift published a Tumblr post publicly shaming the company, claiming that artists would not ask for free iPhones so Apple shouldn’t ask for free music. The same day, Apple executives led by Eddy Cue announced that the company had changed their stance and would pay artists during the free trial.

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Swift had threatened to pull her album from Apple Music, the new streaming service, much like she did from Spotify’s streaming service. The incredibly popular artist has enough leverage to pull her music from such services, as her latest album 1989 went on to sell millions of copies. Spotify was fine as well, with its paid subscribers doubling over the last year. Apple Music is new to the streaming market, however, and needs all the goodwill it can get.

Entering into competition with Spotify, as well as other streaming services like Tidal and Pandora, Apple cannot afford the bad press that comes from being publicly shamed by artists like Swift. Her threats to pull her album, which were mirrored by smaller Indie artists, would have been an embarrassment ahead of the launch that the company could not afford. By changing its plans, Apple has shown its flexibility and capability to quickly change to position itself well in new markets.

AAPL News: Advantages Apple Has In Music Streaming

AAPL News

At the World Wide Developers Conference on Monday, Apple’s biggest reveal was saved for last. The music streaming service Apple Music was finally revealed, and it will be made available to customers on June 30th. So far, the service has been met with skepticism, as analysts are unsure of whether it will be able to overtake competitors and dominate the market. Apple has some advantages over the others, however, and should be able to succeed because of them.

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The first advantage is the overall size of Apple’s music library, which is much larger than that of its rivals in the market. Apple has approximately 37 million songs in its music library, while Spotify and Google Play only have 30 million songs. Other rivals Tidal and Pandora only have 25 million and 1.5 million songs, respectively. Apple’s customer base is also huge compared to rivals, and if it can get a single digit percentage to convert to streaming, it can double the streaming market.

This is where the company’s customer loyalty and brand image will play a part. Apple’s marketing to its core customers has been extremely effective in the past. Apple customers tend to have multiple devices, including Apple computers, mobile phones, tablets, etc. Getting them to adopt the music streaming service is well within reason. Apple also has introduced a family plan, where up to six members can share an account for only an extra $5.00.