After all the waiting, Apple finally launched Apple Music on Monday. The service will only cost $9.99-a-month, which is around the same amount the rivals have. The service is just one of the many out there but will bring the popularity of Apple and its millions of iTunes customers.
Apple’s venture into the streaming business will bring different options to consumers and bring something fresh to the industry. The company is looking for ways to get people to pay for music after the recent decline in downloaded songs. “The Apple brand speaks for itself and it will have an earthquake-like impact on the industry,” said Daniel Ives, an analyst with FBR Markets. “Given the gold standard brand, given Apple’s breadth and awareness, it’s more important what Apple is doing strategically than moving the needle financially.”
The service came without the surprise factor and did not influence the company’s shares, closing down less than 1 percent at $127.80. “The only thing that is going to move Apple stock is iPhone sales and there wasn’t enough news to be a mover in profitability,” said Michael Yoshikami, the chief executive officer of Destination Wealth Management in Walnut Creek, California.
The launch of the music streaming service is the start of the Worldwide Developers Conference in which many new things will be revealed. Among one of them is the upgraded operating system for Apple’s watch that will let developers create apps a little faster. The company has also confirmed that they will reveal the next version of OS X for its Macs called “El Capitan”.
Expansion and Apple Pay
They also revealed that the version of software that comes with the iPhones and iPads will get an expansion. It will focus mainly on Apple Pay, which will come to the UK next month.
Even with the ton of news, the music streaming service was the one that stole the show. Apple introduced the service with clips and live appearances from Drake and The Weeknd. Music industry figure Jimmy Lovine, who came over from Beats when Apple bought it, gave out all the details on the service.
The new service will allow artists to share their work directly with fans. It will also have a global 24/7 radio station named Beats 1 and music from iTunes. Apple Music is already being compared to Spotify, which streams music from the biggest record labels and media companies.
The $9.99 service will be free for the first three months and then the low price will come in. The company will also feature a $14.99 “family plan” for those who like sharing music. With this plan you can have up to six family members.
Apps For The Watch
The company will now focus on apps for the Watch, which have been coming out slowly because many of them are linked with the iPhone and they take time to develop. This will be a big deal in creating a much more useful set of apps for the Watch,” said Jan Dawson, an analyst with Jackdaw Research, explaining that apps did not always run smoothly when tethered to the iPhone. “Watch apps could feel slow and unresponsive at times.”
The company also gave more details on Apple Pay, saying it’s already recognized by more than 2,500 banks and will go over one million locations next month. They also renamed one of their credit and debit cards and boarding passes app, Passbook. The app is now called Wallet.