Drake’s recent hit, Hotline Bling, is exclusively available on Apple Music, but according to a recent study by Vennli, only 15 percent care if their service is championed by big-name celebrities. However, 96 percent of music streaming users strongly agree that it’s important for their services to have a large music selection, according to the SaaS (software as a service) growth strategy platform.
With artists voicing their allegiances to different streaming platforms, the market may become fragmented, and services could struggle to win over consumers if no one platform has every artist. What’s more, YouTube Red will launch tomorrow, joining a crowded market of paid, ad-free music streaming services.
However, new data from Vennli reveals that 22 percent of consumers currently using a free music streaming service plan to switch to a paid model, pointing to a substantial opportunity to snap up new premium members. But as new entrants to the market continue to gain steam, platforms may not be able to offer every artist or song.
This fragmentation could spell trouble. The same Vennli study indicates 96 percent of consumers believe it’s important for a music streaming platform to have a large music selection, and neither Apple Music nor YouTube nor Spotify have a reputation for meeting this demand, according to Gary Gigot, co-founder and CEO at Vennli.
“Apple Music’s biggest perceived strength is the fact that it integrates with consumers existing music library,” notes the Vennli blog post. “When it comes to competing against Pandora, consumers like how they can select specific tracks on demand. However, Spotify, Pandora and YouTube win over consumers with their freemium model.”
Not surprisingly, those respondents to the Vennli study who currently use other Apple products were a bit more likely to use Apple Music and prefer it, but this didn’t influence decisions too much. Similarly, those that listen to music primarily on their mobile phones were slightly more likely to prefer Apple Music, which is likely due to the fact that the app is automatically downloaded on Apple phones.
“To compete, Apple Music should focus on associating their brand with key ‘up-for-grabs’ customer unmet needs: commercial-free and offline listening capabilities,” says the Vennli blog post. “Even though a paid subscription for several of these services offers this functionality, consumers don’t recognize this, so Apple has the opportunity to capitalize on that and capture these features in the eyes of consumers.”