The music streaming market is dominated by a few large providers, most notably Spotify and Apple Music. While Spotify is currently planning a new, more expensive premium tier, Apple Music is sticking to its current model. According to reports, Apple is also considering a price or subscription adjustment, but whether this will actually happen remains questionable. Apple Music differs from its biggest competitor in several ways. The service already offers the audio quality that Spotify only wants to introduce in a new premium model and pays artists better. Despite these differences, the question remains whether Apple really needs to follow Spotify's strategy or whether the company is going its own way.
Spotify is under pressure. The company must find ways to become more profitable while Apple Music is on a more stable financial footing. In recent years, Spotify has tried several times to get EU regulators to take on Apple in order to get better contract terms. But at the same time, the Swedish provider is forced to find new sources of income. A new report A report from Bloomberg says Spotify will soon introduce a more expensive premium tier with better audio quality. Additionally, this subscription could include concert tickets or even tools for editing songs. But while Spotify is focusing on new offerings, the question is whether Apple Music will pursue a similar strategy.
Why Apple Music doesn't have to react to Spotify's strategy
Apple Music already offers high-quality audio
One of the main innovations of the upcoming Spotify subscription is the introduction of HiFi audio. This feature was announced by Spotify in 2021, but never implemented. Now it will apparently appear in a new premium category that will be more expensive than the current subscription. Apple Music, on the other hand, already offers lossless audio and spatial audio with Dolby Atmos at no extra charge. Users thus get better sound quality without having to take out a special, more expensive subscription.
Better pay for artists
Spotify has been criticized several times in the past for paying artists comparatively poorly. Despite high user numbers and growing revenues, musicians receive less per stream than they do with Apple Music, as has been reported time and again. While Spotify is now planning to generate additional revenue with new features such as song editing or concert ticket sales, Apple Music is sticking to its previous strategy. The company is focusing on higher remuneration for artists and is trying to establish itself as a fair partner for musicians in the long term.
Apple Music is financially more stable
A key difference between the two services is their economic basis. While Spotify has been making losses for many years, Apple Music is more financially stable. The streaming service may not be Apple's biggest source of income, but its integration into the Apple ecosystem means it can be operated profitably. Unlike Spotify, Apple Music does not urgently need to introduce new subscription models to remain profitable. Instead, Apple is concentrating on improving its existing offering.
Apple Music is constantly evolving
Although Apple Music does not necessarily need to introduce new pricing models, the service is still innovative. Current developments include:
- Apple Music Classical, a dedicated app for classical music
- Spatial Audio, which offers artists financial incentives for remixes
- Better integration into the Apple ecosystem, for example through Apple One
Apple could adjust its subscription model, but a completely new premium subscription just for Apple Music seems unlikely at the moment. If there is a change, it could affect the Apple One bundle, which includes Apple Music, iCloud storage and other Apple services.
Price changes are not excluded
Although Apple Music currently has no reason to introduce a new premium model, that doesn't mean that prices will remain stable in the long run. Apple has already increased prices in the past, including for Apple Music and Apple One. If a new price adjustment does come, however, it will likely be part of a larger strategy and not simply a copy of Spotify's model.
Apple Music stays on course
While Spotify is looking for new ways to increase its profits, Apple Music is sticking to its current approach. Users benefit from better audio quality at no extra cost while artists are fairly compensated. The possibility of a new, more expensive subscription tier for Apple Music currently seems unlikely. If Apple makes changes, they are more likely to affect the Apple One package. Price increases are possible, but Apple is unlikely to introduce them simply in response to Spotify's new strategy. Ultimately, Apple Music remains a stable and reliable streaming service that will continue to compete without drastic changes. (Photo by nikkimeel / Bigstockphoto)
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