midemblog by Melina Druga
Apple Music

In this, the latest in a series of posts from Reportlinker, we review the latest music+tech news, with one big statistic per news item. All you need to know, in figures!


June 30, Apple will enter the streaming music market with Apple Music. How is the much-anticipated service stacking up? Here are some answers…

3 months
: The trial period during which new Apple Music subscribers will get free access to the service. During this time, Apple does not plan to pay labels for their music. This has generated a backlash from independent labels such as Beggars Group (home, amongst others, to Adele and The XX), who have yet to sign Apple Music contracts. “This is a major problem for any label that relies on new releases rather than deep catalogue”, said indie association AIM leader Alison Wenham, “as the potential for this free trial to cannabalize not only download sales, which remain a very important revenue stream, but also streaming income from other services, is enormous.” Source: Music Ally

UPDATE: Apple will pay artists and labels during this 3 month trial period after all. The confirmation came June 21, from Apple Music boss Eddy Cue, in response to Taylor Swift’s tumblr post complaining that “three months is a long time to go unpaid.” Apple’s volte face has satisified both Swift and indie labels, who, let us not forget, raised their concerns on this topic well before the pop star did…


71.5%: The share of US revenues Apple Music will pay to rightsholders (73% elsewhere in the world). Source: Re/code, via Music Ally


$3 billion: What Apple spent to purchase Beats Music and its parent company in 2014. The service will be re-launched as Apple Music. Unlike other streaming services, it is expectedApple will not have an ad-supported free service. Instead, the free tier will use DJs and streaming radio channels, previously part of iTunes Radio. Previously Apple had stayed away from streaming services, but as download sales have declined so has revenue from iTunes. Source: CNET


800 million: The number of people who have iTunes accounts, all of whom Apple is actively promoting its new music service. Apple also is considering allowing artists to upload their songs without a subscription. Source: Re/code


$19 million:  The amount Apple is rumoured to have offered rapper Drake. Apple also is reported to be in talks with DJ David Guetta and singer Pharrell Williams (UPDATE: Williams’ new track was confirmed as Apple Music’s first exclusive, June 24). All three are also being asked to be guest DJs on iTunes Radio. Big names like theirs will help Apple publicise Apple Music. In addition to music, Apple Music will feature a social network, called Connect, entirely dedicated to artists. Source: Business Insider


More than 400 million:  The number of people who use devices operated by Apple’s iOS operating system. It’s also the number of people Apple can market Apple Music to with a simple ad. This is just one of the reasons Sony Music CEO Doug Morris believes Apple will not only compete with but do better than rivals Pandora, Spotify and others.  Spotify has 60 million active users, but isn’t profitable enough to advertise, Morris said in an interview with VentureBeat. Apple, on the other hand, has a surplus of $178 billion. Source: Yahoo News


Melina Druga is an American writer and editor. She is the author of Enterprising Women: Practical Advice for First Time Entrepreneurs.

Top photo via Apple Music 


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