Holding onto users is key to Apple, which gets the lions’ share of its revenue from the sale of devices rather than the sale of digital content such as songs and TV shows.
The new ad-supported music service from Apple, which pioneered and now dominates music purchases through iTunes, is expected to be free to users. The other business model - adopted by rivals Google and Spotify - is an ad-free subscription model where consumers pay a flat fee for listening time.
These two business models aren’t mutually exclusive. The free version of Spotify is supported by ads. What’s to stop Apple doing the same?
I just pray they don’t call it iRadio, because that’s just silly.
Published on June 6th, 2013