Apple expands into music streaming market

Apple expands its services to music streaming, launching Apple Music

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

Apple launched its latest addition Apple Music on Monday, a $9.99 a month music streaming service massively different from other music streaming services, comes with the advantage of Apple’s Music roots, international reputation and hundreds of millions of iTunes customers.

Apple’s move into the new field of music follows a loss of customers downloading songs and change the dynamics of how the music-customer relationship is conventionally understood.

"The Apple brand speaks for itself and it will have an earthquake-like impact on the industry," said Daniel Ives, an analyst with FBR Markets.

"Given the gold standard brand, given Apple's breadth and awareness, it's more important what Apple is doing strategically than moving the needle financially," he added.

Apple Music’s launch came with surprises to the stock market, with Apple closing down less than 1 percent at $127.80.

"The only thing that is going to move Apple stock is iPhone sales and there wasn't enough news to be a mover in profitability," said Michael Yoshikami, CEO of Destination Wealth Management in Walnut Creek, California.

The new Apple service was unveiled at the Worldwide Developers Conference, where Apple also announced an upgrade for its operating system iOS which will speed the process of app development. Apple said its next operating system for Macs will be called “El Capitan.”

Apple was confidential about its next version of iOS’ features for iPhones and Ipads, called iOS 9, will be available for download in the fall and another expansion called Apple Pay will be ready for use in the United Kingdom next month.

Apple’s new Music services allow artists to share songs directly with fans and non-stop streaming of radio stations, and is similar to the likes of Spotify and Pandora.

Apples Music is offering three months of free subscription followed by a $9.99 a month price and also includes a "family plan" for $14.99 a month for up to six family members.

Apple CEO Tim Cook’s first successful product the Apple Watch will also get a new upgrade with a convincing app collection. Earlier apps were dependent on the iPhone limiting what developers could do.

"This will be a big deal in creating a much more useful set of apps for the Watch," said Jan Dawson, an analyst with Jackdaw Research,saying apps aren’t always efficient when dependent on the iPhone. "Watch apps could feel slow and unresponsive at times."

Apple has also said its other service nearing launch, Apple Pay is supported by more than 2,500 banks and will be surpassing 1 million locations by the next month.

Relatedly, Apple will also rebrand its Passbook, including credit and debit cards and boarding passes to Wallet.


TRTWorld and agencies