“The subscription model,” the Journal explained, “offers the prospect of more revenue for both Apple and the biggest music labels.”Īpple’s default rule has kept me from purchasing hundreds of songs-not because I can’t afford the albums, but because I don’t want to give up the freedom to pick the playlist of my choosing, which has always been one of the key virtues of the download model. The Wall Street Journal noted Apple’s willingness to “ cannibalize its download business in favor of streaming,” especially since the company already holds millions of iTunes users’ credit cards for easy billing.
Why pay for downloads you may tire of and listen to occasionally when you can access most of Apple’s 37 million track catalogue for just $9.99 a month? Wireless connections have improved markedly in the last several years, allowing listeners to continue streaming on their phones and pads even at the beach or driving through back woods.
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Meanwhile, streaming subscription services Spotify and Pandora have seen revenues surge by double digits in the past year.Ĭonsumers should be receptive to Apple’s new music streaming service, Apple Music, when it goes live June 30 (a version for devices using Google’s Android operating system will be available later this year). The company has acknowledged the drop-off in iTunes purchases in recent securities filings.
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