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# Just 3% Of Apple Users Subscribe To Apple Music: Room For Growth or Failed Service?
- URL: https://www.hypebot.com/just-3-of-apple-users-subscribe-to-apple-music-room-for-growth-or-failed-service/
- Published: 2017-03-17T12:28:00.000Z
- Updated: 2017-03-17T12:28:00.000Z
- Description: A new analysis by Amit Daryanani of RBC Capital Markets looks at the revenue that Apple Music and iTunes returns to Apple. But tucked within the findings is a stat. Continue reading [https://www.hypebot.com/hypebot/2017/03/just-3-of-apple-users-subscribe-to-apple-music-room-for-growth-or-failed-serv
- Author: Bruce Houghton
- Tags: Music Business, Music Tech, App Store (iOS), Apple Inc., Apple Music, Business Insider, IOS, IPhone, iTunes, Jimmy Iovine, Television, The Late Late Show with James Corden, #wp, #wp-post, #Import 2026-01-21 10:13

[![Apple headphones](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b7c8e16711970b-200wi "Apple headphones")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b7c8e16711970b-popup?ref=hypebot.com)A new analysis by Amit Daryanani of RBC Capital Markets looks at the revenue that Apple Music and iTunes returns to Apple. But tucked within the findings is a stat that must make Apple wondered about the wisdom of putting their music plans in the hands of Jimmy Iovine and his $3 billion Beats/Apple Music team.

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[![image from photos5.appleinsidercdn.com](http://hypebot.typepad.com/.a/6a00d83451b36c69e201bb09849f17970d-450wi "image from photos5.appleinsidercdn.com")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201bb09849f17970d-popup?ref=hypebot.com)

Just 3% of Apple users (those that have installed an Apple iOS) have subscribed to Apple Music, according to a [new study](http://appleinsider.com/articles/17/03/15/services-growth-on-track-to-deliver-big-long-term-payout-for-apple-analyst-says?ref=hypebot.com) by analyst Amit Daryanani of RBC Capital Markets. Some would conclude that Apple Music was not resonating with Apple's customers; but Daryanani calls streaming a "very unpenetrated" sector in relation to the installed user base, and a "very attractive opportunity" for growth.

Even at its current levels Apple Music is contributing 12% of the revenue pouring into Apple's Services division (the App Stores, iTunes and Apple Music, AppleCare and Apple Upgrade Program, Licensing, and the Genius Bar). iTunes is still contributing 22%

[![image from photos5.appleinsidercdn.com](http://hypebot.typepad.com/.a/6a00d83451b36c69e201bb09849f54970d-450wi "image from photos5.appleinsidercdn.com")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201bb09849f54970d-popup?ref=hypebot.com)

But Apple Music contribution to the bottom line looks less rosy when considering the low gross margins that it delivers.

[![image from photos5.appleinsidercdn.com](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b8d26bc8a3970c-450wi "image from photos5.appleinsidercdn.com")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201b8d26bc8a3970c-popup?ref=hypebot.com)

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