Apple Music Attracts 11 Million Users in Trial Period, Executive Says

6 Aug 2015 | Author: | No comments yet »

Apple Music actually has 11 million subscribers, Eddy Cue says.

Apple said it attracted 11 million users to its new streaming service in the first five weeks since its launch, but the question is whether those trial members can be converted to paying customers.

Apple’s iTunes Store helped revitalize the music industry a decade ago, but digital downloads have slumped in recent years amid a shift toward streaming. Cue announced the number in a USA Today interview, and even broke down the numbers by subscription type: 2 million have enrolled in the $14.99 family plan, while 9 million signed up for the $9.99 individual service.

The story behind the story: All of Apple Music’s subscribers are currently enrolled in a free three-month trial, but if Apple manages to convert all of them into paying customers at the end of September, the company will be well on its way to toppling Spotify—at least when it comes to streaming revenue. Eddy Cue, Apple’s senior vice president of Internet software and services, told USA Today that nearly 2 million opted for the more lucrative family plan. In the most recent quarter, Apple’s revenue rose 32.5 percent to $49.61 billion from a year earlier, beating Wall Street expectations of $49.43 billion. Unlike streaming leader Spotify and similar services, Apple doesn’t offer a free on-demand tier — bowing to pressure from the major records labels and reigning pop princess Taylor Swift.

The company is targeting people who don’t already use on-demand streaming services—people who buy music, use radio apps like Pandora, or torrent tracks. “There’s still the issue of winning over millennials, who never pay for music, by showing them you’re offering something that will improve their lives,” producer Jimmy Iovine, who founded Beats Electronics with Dr.

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