I know that predicting the future from the Apple rumor mill is often a fruitless exercise but this iRadio or iTunes Streaming service rumor re-appeared in a major way over the weekend. Erika Morphy at eCommerce Times did a nice article on the topic highlighting the built in audience with 500 million iOS devices on the market.
Strategically, this offering would not be a stretch from Apple’s perspective. Apple has the relationships with the major labels and they could almost guarantee the labels stronger streaming revenues than the Pandoras and Spotifys of the world due to that huge built in audience. From the user perspective, music streaming is the dominant means consumers use to discover and listen to music these days – especially for younger demographics. If the app becomes a default on iOS devices, it might in fact be the killer music app.
Something to think about today…
Associate Professor of Marketing
Stillman School of Business
Seton Hall University