Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Tuesday, April 17, 2018 10:10:02 AM
By: Motley Fool | April 17, 2018
Apple announces another milestone and assigns a new chief to head its fast-growing streaming music service.
It seems there's just no stopping Apple (NASDAQ:AAPL) Music. Just two months after revealing to The Wall Street Journal (paywall) that its streaming music service had topped 36 million paying subscribers, Variety is reporting that the number has grown to over 40 million, with another eight million on free trials.
If those number are accurate -- and Variety says it reviewed the memo -- that would represent more than 11% growth in just 65 days. Those figures also seem to confirm reports that Apple has been adding paid subscribers at rate of about 5% per month, compared to just 2% for Spotify (NYSE:SPOT), the current leader. If this pace holds, Apple will surpass Spotify's U.S. paid subscribers by later this year.
Apple has also charged Oliver Schusser with leading Apple Music going forward.
Not a household name
Schusser, who most recently headed Apple's music and content operation in Europe, has been given the reins of Apple Music Worldwide. The executive, who joined Apple in 2004, previously headed the launch of other Apple services in international markets including the App Store, iTunes Store, and iBooks. Schusser also worked with music labels, studios, and publishers outside the U.S.
Another telling revelation is that Schusser will be splitting his time between Apple's headquarters in Cupertino and its offices in Culver City, which houses the company's Apple Music and Beats Music office, as well as the headquarters for its growing content business.
Apple plans to spend more than $1 billion on streaming video this year and has repeatedly said that its programs are an added bonus for music subscribers. Many investors have wondered if this might eventually lead to a streaming video service to compete with the likes of Netflix and Amazon (NASDAQ:AMZN) Prime Video.
Schusser also played a major role in Apple's acquisition of Shazam. The app is used to identify songs, TV shows, movies, and commercials playing on a user's phone after reviewing a short audio clip. Shazam has been tightly integrated with Siri for years and has been one of the most popular apps on Apple's App Store.
Bring their "A" game
Competition has been ramping up in the streaming music space in recent months, and the largest players will have to up their game in order to remain competitive.
Spotify recently went public, having ended 2017 with 71 million "premium" or paying subscribers. The company is said to be overhauling its free service to make it more user friendly -- particularly for mobile customers. Listeners using the ad-supported model will now be able to more easily access playlists and have better control over the song selections. Spotify uses the free service as a funnel to market to prospective new members, and the company hopes that this upgrade will make its service more appealing.
The VP of Amazon Music recently told Billboard that paying subscribers to its Unlimited Music had more than doubled over the previous six months, boasting "tens of millions" of listeners.
Apple plays to win
Apple Music is one of the major contributors to the company's growing service business, which also includes the App Store, iTunes, Apple Pay, and iCloud. Apple CEO Tim Cook revealed early last year that Apple's goal was to double its services revenue by 2020. At the time, the segment had produced trailing 12-month revenue of just over $25 billion, meaning Apple is planning for just over $50 billion annually from the unit within the next two years. Over the past four quarters, services revenue has grown to $31.2 billion, an increase of 18.6%. At this rate, Apple will likely achieve that goal, especially if streaming music continues its rapid adoption.
Schusser's combination of international experience and work with content providers may prove to be key, as the company seeks to expand Apple Music outside its domestic roots and take the fight to Spotify on its home turf.
https://www.fool.com/investing/2018/04/17/apple-music-tops-40-million-subscribers.aspx
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
Recent AAPL News
- Visa Faces Monopoly Lawsuit; Meta Introduces Celebrity Voices for Chatbot; Stellantis on the Hunt for New CEO • IH Market News • 09/24/2024 10:15:50 AM
- Nike Shares Surge 7% Pre-Market as Elliott Hill Becomes CEO; FedEx Shares Tumble 13% After Profit Miss • IH Market News • 09/20/2024 10:02:58 AM
- Meta Strengthens Child Privacy on Instagram; Google Overturns $1.7 Billion Antitrust Fine; Snap Updates Spectacles • IH Market News • 09/18/2024 10:13:07 AM
- Microsoft Boosts Share Buyback, Raises Dividends by 10%, Intel Secures Chip Deal with Amazon • IH Market News • 09/17/2024 10:40:35 AM
- OpenAI Unveils Strawberry AI Model Series; Boeing Stock Falls 4% Amid Strike; HR Surges 20% on Growth Forecast • IH Market News • 09/13/2024 10:12:55 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/10/2024 01:06:34 PM
- Apple Loses EU Dispute; Google’s $2.7 Billion Fine Upheld; Oracle Shares Surge 9% • IH Market News • 09/10/2024 10:02:31 AM
- Apple introduces groundbreaking health features to support conditions impacting billions of people • Business Wire • 09/09/2024 06:41:00 PM
- Introducing Apple Watch Series 10 • Business Wire • 09/09/2024 06:36:00 PM
- Apple introduces iPhone 16 and iPhone 16 Plus • Business Wire • 09/09/2024 06:36:00 PM
- Apple introduces AirPods 4 and the world’s first all-in-one hearing health experience with AirPods Pro 2 • Business Wire • 09/09/2024 06:36:00 PM
- Apple Watch Ultra 2 now available in black titanium • Business Wire • 09/09/2024 06:36:00 PM
- Apple debuts iPhone 16 Pro and iPhone 16 Pro Max • Business Wire • 09/09/2024 06:36:00 PM
- Dell, Palantir, and Erie Will Be Added to the S&P 500; Boeing Avoids Strike; Apple Event Takes Place Today • IH Market News • 09/09/2024 10:05:35 AM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- Nvidia Subpoenaed by DOJ, Athira Pharma Shares Plunge 71% After Study Fails, Zscaler Falls 15% Post-Earnings • IH Market News • 09/04/2024 09:50:25 AM
- Big Lots Falls 27%, Considers Bankruptcy; DraftKings Acquires Simplebet, Berkshire Hits $1 Trillion • IH Market News • 08/29/2024 10:06:50 AM
- High Volatility Expected in Nvidia Report, Ambarella Soars 20%, Hertz Strengthens Board, Apple Cuts Jobs • IH Market News • 08/28/2024 09:50:36 AM
- Apple Names New CFO, Sony Hikes PS5 Price in Japan, Santander Launches Share Buyback • IH Market News • 08/27/2024 09:35:22 AM
- Stacks Prepares Nakamoto Upgrade, Record Bitcoin ETF Inflows, Semler Scientific Expands Bitcoin Reserves • IH Market News • 08/26/2024 10:35:56 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/26/2024 09:20:33 PM
- Apple announces Chief Financial Officer transition • Business Wire • 08/26/2024 08:30:00 PM
- IBM Closes China Research Division, Uber Fined $324M, Starliner to Return Without Astronauts • IH Market News • 08/26/2024 12:58:21 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/23/2024 08:30:44 PM
- Cruise and Uber Join Forces for Robotaxis, Alibaba Shifts Primary Listing to Hong Kong, Altria Hikes Dividend 4.1% • IH Market News • 08/23/2024 12:20:26 PM
FEATURED Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • Sep 24, 2024 8:50 AM
FEATURED Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM