Apple Music’s big mistake: No free music streaming for subscribers

APPLE Music may not be the record industry’s saviour when it launches next week, with experts saying it misses one big feature that its rivals deliver.

TECHNOLOGY giant Apple will launch its music-streaming service in more than 100 countries next week, offering more than 30 million songs, around-the-clock streaming radio, and the support of streaming sceptics like Taylor Swift who said it was “the first time it felt right in my gut to stream my album”.

But Australian experts say the multi-billion company may not be the music industry’s saviour this time, with a major omission limiting its popularity and its late arrival on some devices delaying adoption.

STREAMING FAQ: If you have Apple Music, will you buy iTunes?

COST-CUTTING: Rdio halves the price of music-streaming offers

Despite modest predictions for Apple’s service, however, Australians are increasingly embracing music-streaming services, with its popularity already affecting digital song sales and reducing radio listeners.

Streaming at last .., Singer Taylor Swift confirmed her album 1989 would feature on Apple Music after earlier chastising the company for not paying artists during a three-month free trial. Picture: AP

Apple unveiled its much-rumoured streaming service at its annual developers conference early this month, with its worldwide launch due next Tuesday.

While recognising Apple would be a late entrant, Beats by Dre co-founder Jimmy Iovine said music-streaming was currently a “mess” for artists and listeners.

“Online music has become a complicated mess of apps, services and websites,” Mr Iovine said.

“Apple Music brings the best features together for an experience every music lover will appreciate.”

After its launch, Apple Music will let paid subscribers access a library of more than 30 million songs and curated playlists based on listening habits, a streamed Beats radio station, and a social network called Connect.

But unlike its competitors, including Spotify and Rdio, Apple Music will not deliver free, ad-supported access to its music library — an omission experts say will severely restrict its popularity.

Users will only be able to access Beats 1 streaming radio without charge.

Launch day ... Apple CEO Tim Cook, right, hugs Beats by Dre co-founder and Apple employee Jimmy Iovine at the Apple Worldwide Developers Conference. Picture: AP

By comparison, Spotify offers advertising-supported access to playlists on smartphones and, following Apple’s announcement, Google launched a new ad-supported playlist feature for US users.

Telsyte managing director Foad Fadaghi said Australians had embraced music-streaming, with research showing more than 2.4 million Australians, or about 15 per cent of smartphone users, used song-streaming services last year.

Despite a “rapid shift” to streaming offers, Mr Fadaghi said many listeners relied on free access to the providers and were not yet ready to invest money in the technology.

“There is a portion of the market that will always rely on free and ad-supported models,” he said.

“Apple is probably only going to address about a third of the market by having a paid-only option. It is limiting and they will only be targeting their service at a smaller audience.”

Song streaming on the go ... Spotify launched in Australia in 2012, and now offers free access to playlists on mobile phones.

Music-streaming giant Spotify, for example, this month revealed it had doubled its paying audience from 10 million subscribers last year to 20 million subscribers this year.

Those 20 million paying users were out of 75 million active Spotify users, however.

Fusion Strategy media analyst Steve Allen said rejecting an ad-supported service was a “typical Apple” move, but would limit its ability to lead the market when the “largest part of the market at the moment is free music streaming”.

Mr Allen said Apple would also have to overcome well-established music-streaming services in Australia, which were already having an effect on mainstream media, including reducing radio’s audience.

“We detect a bit of movement in radio surveys,” Mr Allen said. “The decline in listenership isn’t great — not like television at 10 per cent — but there is a distinct decline in radio listening, particularly in commercial radio.”

ARIA also reported a drop in digital song sales of 10.2 per cent last year, or $9.6 million, though digital album sales dropped by less than one per cent.

Google plays on ... Google launched free access to playlists curated by Songza music experts after the announcement of Apple Music.

Mr Fadaghi said just like Apple’s iTunes Store changed the record industry’s focus from albums to singles, streaming services could change its focus to playlists.

“It’s all about the playlist now — sharing playlists and curating playlists,” he said.

“Maybe that means we’re swinging back towards (music) albums or having access to entire artist catalogues.”

FIVE OF THE BIGGEST MUSIC STREAMING SERVICES

Apple Music

Price: $US9.99 per month, $US14.99 for six family members (Australian prices TBA)

Services: Music-streaming library of more than 30 million songs, free three-month trial, Beats 1 live streaming radio, social network Connect for listeners and artists.

Availability: Apple iOS devices from June 30. Apple TV, Google Android phones later this year.

Drawbacks: No free, ad-supported music streaming offer outside radio service, initial limited availability, lower music quality at 256kbps.

Competition ... Google Play’s All Access subscription service. (Picture: Supplied.)

Google Play

Price: $11.99 a month

Services: Music-streaming library of more than 30 million songs at 320kbps, free one-month trial, customised radio stations, free storage for 50,000 purchased tracks for mobile streaming, free ad-supported playlists in the US only.

Availability: Apple iOS and Google Android devices, web.

Drawbacks: No free, ad-supported music streaming outside the US.

Spotify

Price: Free tier, $11.99 per month, $35.99 for five people

Services: Music-streaming library of more than 30 million songs at 320kbps, free two-month trial, streaming radio stations, music timed to your running, free, ad-supported access to playlists on the go with six song skips per day.

Availability: Apple iOS, Google Android, Sony PlayStation, web.

Drawbacks: High-cost family tier is being reviewed.

Many venues ... Rdio is available on Apple iPads, iMacs, Google Android and Apple smartphones.

Rdio

Price: Free tier, $5.99 per month limited mobile plan, $11.99 per month, half price for family members

Services: Music-streaming library of more than 30 million songs at 320kbps, three-month free trial, personalised and genre-based radio stations, free, ad-supported tier offers radio stations, cheaper tier for 25-song mobile streaming.

Availability: Apple iOS, Google Android, Windows Phone, Windows desktop, Chromecast, web.

Drawbacks: No mobile playlists on the free tier, high price for family of six.

Tidal

Price: $11.99 per month, $23.99 per month for CD-quality audio

Services: Music-streaming library of more than 25 million songs at up to 1411 kbps, one-month free trial, curated playlists, behind-the-scenes videos from supporting artists.

Availability: Apple iOS, Google Android, web.

Drawbacks: High cost to access and download higher bit-rate tracks.