Will International Appeal Give Apple Music the Edge Over Spotify?

Apple Music launched last week with less fanfare than expected, perhaps a victim of early holiday travel ahead of U.S. Independence Day.

Regardless, it is the long haul that matters most to Apple, as the world’s most valuable brand attempts to claw back the early-mover advantage that Swedish rival Spotify has enjoyed – and exploited  – to date.

Part of that strategy is likely to be played out on the global stage, as Apple’s new streaming service is available in significantly more markets than its peers. 

 

For a quick comparison, Apple Music has launched in more than 100 countries, which is almost twice as many as Spotify currently operates in. Furthermore, there are a number of territories in which Apple has launched its service where neither Spotify nor any other notable competitors currently operate.

Perhaps most importantly of all, these are not all smaller territories with limited market potential.

Among the territories in which Apple Music will beat Spotify to the punch are India, Russia, Japan, and  Nigeria. Between these four alone, the number of potential consumers could stretch into the billions, although activating them inevitably poses a major challenge given prevailing levels of piracy and, with the exception of Japan, less mature streaming markets. This provides a stark contrast to the reverse situation for Spotify, wherein the only markets it will now operate without competition from Apple Music are Turkey, Taiwan and smaller European nations like Liechtenstein and Andorra.

The importance of this advantage cannot be overstated. For many consumers in these countries, which potentially hold the key to the global expansion of streaming music, Apple’s platform will be their first experience of the phenomenon. Given the game-changing nature of digital streaming, not to mention the fact that many hold it up as the long-term solution to piracy, the potential for Apple Music to take giant strides into these territories is just as crucial as its need to build a customer base in the United States, Europe, and Australia.

In June, Spotify announced that it has passed the 20 million mark in terms of paid subscribers, while its overall active user base now numbers more than 75 million globally. Although that growth rate is increasing quickly, Apple Music is not competing from a standing start. The hundreds of millions of active iTunes accounts the Cupertino company has on file provide a solid base to convert to its new service, in addition to the Beats Music users that it hopes to bring across from the service it purchased last year.

All of this sets the stage for an intriguing evolution of the streaming music space. The market, although relatively young, has been waiting for some time for Apple to enter the fray and challenge Spotify’s dominance. It is clearly a battle that Apple intends to win, if the brand’s commitment to pay artists for all streams during its three-month free trial period is anything to go by. That will cost Apple a pretty penny, but the company clearly believes the long-term pay off in terms of brand awareness and the associated loyalty will be worth it.

For artists, the hope has to be that Apple can use its extensive resources to raise awareness of streaming music services and increase . It this really is the piracy killer that many believe it to be, making streaming subscriptions a truly global trend will have everyone involved in the music business singing Apple’s praises.

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