Apple Inc. (NASDAQ: AAPL) is only a few hours away from taking the center stage for the WWDC 2015 and introduce much-anticipated iOS 9 and Mac OS X along with the highly speculated Apple Beats Music streaming service. For the past few days, there have been so many speculations about the upcoming music service and just a day before the annual developer conference Sony Music EO Doug Morris confirmed the streaming service arrival.
There have been so rumors about the music service surfacing the Internet, and reports suggest that the company is going to run the service without any monthly charges. iOS 9 users are probably going to enjoy it, whereas Mac OS X users are least expected to get an application for the Apple Beats Music.
Flipping the coin, other services, including Spotify and Pandora, are highly expected to stall or at least suffer a significant cut in their annual profits and the user base. It is without a doubt that iOS users using Spotify, Pandora, or any other service for that matter, will move to Cupertino giant’s music streaming service for their music fix.
Looking at the past statistics, Pandora in the Q3 last year reported a growth of 5.6% with 75.6 million active listeners in United States, Australia, and New Zealand. Opposed to that, Spotify in the same quarter crossed the mark of 60 million by adding more than 10 million users in just two months. Pandora has been struggling to compete with the Spotify while dealing with its falling stock market.
However, both the companies are going to be in some trouble now. The majority of the premium users will move to the free Apple streaming service, and Spotify and Pandora both can expect a cut of nearly 50% in their user base.
Apple has always ruled the music industry, and iTunes is its sword generating a massive revenue, however, if Cupertino giant plans to launch the service with a paid subscription, then new launched music streaming will face some serious competition from the Spotify, which operates in more than 50 countries worldwide.
Apart from that Spotify has also introduced new services on its platform including videos, podcasts, and several other services. Making the platform more open towards the social activities, the music streaming service likely to retain its user base. Apple services are least expected to have any such features at the time of launch.