Apple Music recently made its debut in the music streaming industry, amid heavy competition from long-standing firms like Spotify. The new music service from Apple Inc. (NASDAQ:AAPL) had a rather negative start as it faced criticism because of its free royalty rates. Regardless, the company’s new streaming service has been described as a possible game changer for the industry.
The multi-billion dollar music industry has been full of uncertainties, thus becoming increasingly difficult. The industry has also been slow towards change and adapting. Before the turn of the century, it was one of the most lucrative businesses. The new age technology particularly the internet is responsible for the massive decline that took place since then. The drop was particularly fueled by increased piracy over the internet.
Apple has always been keen to adapt to these changing conditions to reap profits from the music industry. A good example is the introduction of iTunes. After that came the lucrative deal with Beats. Therefore, it is expected that the strategy that Apple plans to use with Apple Music is cleverly thought out.
Chief Executive of Tommy Boy Entertainment, Tom Silverman, said that Apple Inc. (NASDAQ:AAPL) can multiply the potential of the new streaming service by converting the free sign ups into subscriptions. Mr. Silverman is also the founder of the New Music Seminar. He also said that his aim is to restore the music industry to its previously lucrative status that existed before the year 2000.
Apple Inc. (NASDAQ:AAPL)’s resolution to slash loyalties was met with a lot of austerities. However, the company plans to follow up with its strategy to give the new streaming service a profitable status. According to Silverman, Apple Music will need to accumulate more than 150 million subscribers each paying $60 on an annual basis to reach the intended goal. It will not be easy for the company to achieve the feat, but then again Apple has always been resilient and true to its goals. The new service will be launched on June 30 on the iOS platform and will be featured on other platforms by the end of the year.