Reports surfaced yesterday that Apple will relaunch Beats Music in March inside an updated version of its iOS operating system. But even placement within the core of Apple's eco-system does not mean Beats will become a music subscription market leader, according to a top anlayst. It could, however, be an important tool to help convert iTunes users to paid streamers.
"If Apple does embed the Beats music subscription service into upcoming iOS releases, it won't guarantee a leading share of the subscription market currently dominated by Spotify and Pandora," said Paul Verna, senior analyst, eMarketer. "But it is consistent with Apple's strategy of steering users toward its proprietary apps, and could be a key step in converting its user base from the iTunes download model to a paid-streaming model."
According to eMarketer, 83.8 million people will listen to music via streaming or direct download in 2014, accounting for just over half of US smartphone users.
Mobile radio continues to gain popularity. US adults spend an average of 32 minutes per day listening to radio/streaming services on mobile devices, according to eMarketer, up from 26 minutes in 2013. A majority of that time currently is spent on Pandora.
MORE: Apple To Relaunch Beats Music In March Inside iOS [REPORT]
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