Apple Inc said on Thursday its new music streaming service has attracted more than 11 million members during its free trial period, a response that music industry experts called respectable but not overwhelming
Apple Music
San Francisco: Apple Inc said on Thursday its new music streaming service has attracted more than 11 million members during its free trial period, a response that music industry experts called respectable but not overwhelming.
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Apple Music rolled out with a three-month free trial period on June 30. Nearly 2 million people opted for the free trial family plan, which will cost $14.99 a month for up to six family members, the company said. The service costs $9.99 a month for individuals.
Apple's iTunes Store helped revitalize the music industry a decade ago, but digital downloads have slumped in recent years amid a shift toward streaming. Unlike popular streaming services from rivals such as Spotify, Apple's offering does not include a free on-demand tier, a decision praised by some in the music industry.
One analyst said that although the service has found a following, he would have expected Apple to attract more trial members given the hundreds of millions of people who already have credit cards on file with the company through its iTunes service.
"It's respectable, but it would be more respectable if they were a new service that was just starting and people had to trust them," said Ted Cohen, a former music executive who is now managing partner of TAG Strategic, a digital entertainment consultancy.
Based on typical conversion rates in the industry, it would be impressive if Apple convinced 20 percent of the trial members to become paying subscribers after the free trial ends, he added. Spotify has more than 20 million paid subscribers worldwide, the company said.
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