Can Apple Music Still Make a Comeback in a Slowing Streaming Market?

Can Apple Music Still Make a Comeback in a Slowing Streaming Market?The music streaming market is becoming increasingly competitive, but user growth is slowing down. According to Bloomberg, Universal Music Group recently highlighted the slowing growth rates for streaming services like Apple Music

Can Apple Music Still Make a Comeback in a Slowing Streaming Market?

The music streaming market is becoming increasingly competitive, but user growth is slowing down. According to Bloomberg, Universal Music Group recently highlighted the slowing growth rates for streaming services like Apple Music.

Boyd Muir, the CFO of Universal Music Group, pointed out that Apple hasn't disclosed any new user figures since Apple Music reached 60 million subscribers in 2019. This implies that even five years later, in 2024, the number may not have reached 70 million. This trend of slowing user growth isn't unique to Apple. Streaming platforms like Spotify and Amazon are also experiencing similar flat lines in their subscriber growth curves.

Muir believes that the slowdown is an "industry-wide phenomenon. The streaming market has transitioned from a high-growth phase, and platforms are seeing a gradual decrease in user acquisition rates. This challenge has led several companies to begin laying off employees. However, its unlikely that a single company can single-handedly reverse the slowing user growth trajectory.

• Despite the market slowdown, Apple remains confident in their Apple Music streaming service. Oliver Schusser, Apple's Vice President responsible for Apple Music, Apple TV+, Beats, and other services, stated in an interview with Wallpaper magazine in March this year that Apple is "constantly pushing out new features for Apple Music" while "most others in the industry are stopped in their tracks."

"We are focused on music while others are moving away from music to podcasts and audiobooks We've been pushing while most others in the market have stopped innovating," Schusser emphasized, highlighting Apple Musics recent roll-out of new features like karaoke mode, a dedicated classical app, spatial audio, and dynamic lyrics. He believes these features demonstrate Apple Music's commitment to excellence and innovation.

Will Apple Music's efforts be enough to turn the tide on the slowing user growth trend and achieve a comeback?

Factors behind the Industry Slowdown

Several factors contribute to the slowing user growth in the streaming market:

• Market Saturation: With the emergence of a growing number of streaming platforms, the market is approaching saturation. Users are increasingly inclined to stick with their preferred platforms and maintain long-term subscriptions.

• User Loyalty: User loyalty towards specific streaming platforms is on the rise. Users might have already found their preferred platform and adapted to its services and content, making them less likely to explore other options.

• Economic Uncertainty: Global economic uncertainty is creating a trend where users may opt to cut back on non-essential subscriptions, including music streaming services.

• Increased Competition: The rivalry among streaming platforms is intensifying, with players actively launching new features and content to attract and retain users. This leads to a redistribution of market share, but also exacerbates the slowing user growth trend.

Apple Music's Opportunities for a Comeback

Despite the industry's challenges, Apple Music has opportunities for a comeback:

• Powerful Ecosystem: Apple boasts a strong hardware and software ecosystem that can provide significant support for Apple Music. For instance, Apple Music integrates seamlessly with Apple devices like iPhones, iPads, Macs, and aligns with Siri voice assistant and other Apple services.

• High-Quality Audio: Apple Music emphasizes high-quality audio experiences, offering advanced technologies such as lossless audio and spatial audio, appealing to users who value sound quality.

• Exclusive Content: Apple Music actively seeks exclusive content, collaborating with artists like Taylor Swift and launching original content like Apple Music Radio, to draw in users.

• Continuous Innovation: Apple Music continuously introduces new features, like karaoke mode, a dedicated classical app, dynamic lyrics, and more, enhancing user experience and staying competitive.

Looking Ahead

The slowdown in streaming platform user growth doesn't necessarily signify a market decline. Instead, it could mark a new phase of development driven by user experience, content quality, and innovation prowess. As an integral part of Apple's ecosystem, Apple Music holds strong advantages. Through continuous innovation and user experience enhancements, it aims to gain an edge in the competitive landscape.

In the future, streaming platforms will continue to evolve in more personalized, intelligent, and interactive directions. Users will gain access to richer, more convenient, and customized musical experiences. Streaming platforms will also explore new development models to adapt to market demands and changing user habits.

In essence, the slowdown in streaming platform user growth poses an industry-wide challenge, but Apple Music still has a chance to make a comeback. Apple will continue to focus on music experience innovation to stand out in the competition and offer users a superior music service.