News: Press Clippings

Apple Music launches, and men are most likely to try it

Reposted from MarketWatch-logo-2014

Publication date 6/30/15

Apple Music has gone live in the U.S. on Tuesday amid signs of significant interest, especially from men.

The service is expected to draw in almost double the male subscribers as women, according to a recent survey compiled by digital marketing company Fluent Inc.

Of a survey among 3,500 U.S. adults, 8% of respondents said they plan to take advantage of Apple’s AAPL, +0.91% three-month free trial, while 6.2% said they planned to convert into subscribers.

Of those who said they would try it, 10.9% of men said they would try it, while 8.4% said they would pay the $9.99 monthly subscriber fee, versus 5.7% and 4.5%, respectively, for women. That translates into roughly 20 million Americans who say they will try the service and 15 million who will subscribe, according to Fusion.

That could quickly put it close to Spotify, which most recently reported 20 million U.S. subscribers, and well ahead of two other streaming services. Pandora Media Inc. P, +0.23% had 3.6 million subscribers at the end of 2014, and Tidal, which is backed by Jay-Z, had 770,000 at the end of April, according to a Jay-Z tweet.

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Apple’s “rabidly loyal and more affluent” customer base will help Apple Music succeed over rival streaming and radio services, including Spotify, Pandora and Tidal, said Matt Conlin, president and co-founder of Fluent.

“We expect Apple Music to be an instant hit with consumers and quickly leapfrog incumbents like Spotify and Pandora to become the world’s #1 streaming music service,” he said.

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Apple Music had a roller-coaster month of publicity in the month leading up to Tuesday’s launch. It initially faced push-back for not paying royalties during the three-month trial period. But it eventually backtracked and even won-over superstar Taylor Swift, who pulled her music from Spotify last year.

Shares of Apple climbed 0.9% to $125.52 just after the Apple Music launch on Tuesday. Its shares are up 13.7% year-to-date, outperforming the Dow Jones Industrial Average, down 1%.

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The official Apple Music Twitter account has 7.3 million followers.

The first Beats 1 show, Apple’s 24/7 global radio station, kicked off at noon:

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Fluent
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