Apple Music: the temptation to break prices

applemusic_600If subscriptions to music streaming offers explode, competition is tough even for Apple. If in mid-September Apple Music had 17 million paying subscribers (the only formula available), the industry leader, Swedish Spotify now boasts 40 million paying users worldwide.

Spotify continues to deliver growth, despite Apple’s entry into the market. Between March and September, Spotify gained 10 million additional subscribers. Between April and September, Apple Music had won 4 (13 to 17 million).

To reduce the gap, Apple could be tempted by a lever he knows little enough: promotion. The firm is seeking to move the lines in a market where the fixed fee to 10 euros per month is the rule. Apple is therefore looking at the ground by now offering a subscription at half price (4.99 euros per month) for students.

This offer is now available in many countries including France. There are, however, conditions: attend a university or higher education institution for a maximum of 4 years. It remains to be seen whether this price reduction will be generalized: enough to rapidly boost the user base while jeopardizing a sector that is still fragile.

In France, the digital transition is still underway as physical sales still account for more than 50% of the market (43% for digital). On the other hand, the switch from downloading to streaming is in advance.

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