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: Possible Acquisitions Pushing Apple Revenue Forward

Apple Stock News

For the latest Apple Stock News, AAPL closed at $116.02 on Wednesday, January 4, 2017 with a -0.11% loss, or -$0.13 from its previous close of $116.15 per share.

Apple Stock News

It’s no secret that Apple needs to break further into the software and services sector as described in this article. There has been talk about Apple doing just that and may purchase Sirius XM Holdings Inc. Sirius is also possibly going to buyout Pandora Media Inc. which Apple would inherit if the rumors are true. This would be an extremely beneficial move for the company as the subscription services on Spotify and Pandora would boost revenue as well as provide a steady stream for years to come.

The revenue from these possible buyouts would put Apple into a more secure position, being that iPhone sales have not been as exciting as it used to be. Service revenue generally doesn’t shift as much as hardware revenue. Sirius and Pandora were both very successful in Q3 as Sirius and Pandora earning $1.3 billion and $351.9 million respectively. If Apple were to acquire them before Q3 of 2016, the revenue would equate to a 25% increase in their quarterly revenue. If not for the increase in revenue, Apple would be able to dominate the music streaming sector, effectively engulfing two of their larger competitors. This buyout is a move Apple should seriously consider.

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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: Efforts To End Free Streaming

Apple Stock News

Apple has been using aggressive tactics to force rivals Spotify and YouTube to abandon their free streaming services, which has attracted interest from the Department of Justice, according to the Verge. Apple is attempting to get major music labels to force streaming services to force these streaming services to abandon their free tiers, as Apple prepares to release their own streaming service. An announcement of this service, which will be powered through the Beats by Dre acquisition and will remain under the iTunes name, could be announced as early as next month.

apple stock news

Apple was hoping to price its streaming service at $7.99, but that does not look possible as the music industry has balked at the lower price. Spotify, which is currently priced at $9.99 for the premium service, currently has 60 million users. However, only 15 million of them pay for the premium service, with the rest streaming for free. Apple has been using its considerable power in the music industry to stop music labels to not renew subscriptions allowing Spotify to stream through its free service, putting it in position to acquire a large amount of users when its service is launched.

The Verge also quoted sources saying that Apple offered to pay YouTube’s licensing fee to Universal Music Group if the group stopped allowing its songs on the video site. With its streaming service expected to debut at the World Wide Developers Conference in June, it could remove its main competition in the streaming world. This has attracted interest from the Department of Justice and the Federal Trade Commission, and the European Union’s Competition Commission is probing the company to find whether it is using its power in the music industry illegally.