The Wall Street Journal reported this month that Apple is working on veteran products. The rumors were that the company is collaborating with veteran producers to help create original content. It would include TV series and movies for an expanded service of Apple Music. Today the head of Apple Music Jimmy Lovine has given more insight about the expansion plan of Apple. This insight helps in clarifying the position of Apple in relation to its streaming competitors like Pandora and Spotify.
Firstly, the rumors of Apple Music expansion to video streaming is true. It was confirmed at the Television Critics Association press tour. He said that “Apple Music is trying to create a cultural, pop culture experience that includes audio and video”. Apple is considering other options in programming and not just the traditional video structures or definition that encompasses an entire musical genre like the James Corden “Carpool Karaoke” or Dr. Dre’s “Vital signs”.
Lovine added, “We’re not going to say no if South Park walks into my office.” He added, “We’re going to do whatever hits pop culture smack on the nose. We’re going to try.”
Apple Music executive also made comments on how they plan to position this product. In comparison to other streaming services, they have a well thought out positioning strategy. The business major focus is on converting free users to paid subscribers. Spotify offers a “freemium” tier as an entry to the service. This is that worked in converting 80 percent of its users to paid subscribers. Apple offers no free tier besides the free trial period.
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Apple does not plan to make Apple Music services free. It will also shut down other free streaming content like ad supported iTunes Radio service. The services are available to Apple Music subscribers only. The move is claimed by Apple to pay off. The music service in 2016 has 20 million paid subscribers. Roughly what Spotify has in terms of paying a customer base. Apple has the benefit of owning a platform where it promotes its own content and services through built-in apps on the hardware. Apple is not the only service making the move in the video domain. Spotify launched video last year. It later made expansion in original programming focused on a vast genre relating artists.
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