Marco della Cava, writing for USA Today:
One month after unveiling its new streaming music service, Apple has locked in 11 million trial members, company executives tell USA TODAY.
“We’re thrilled with the numbers so far,” says Eddy Cue, Apple’s senior vice president of Internet software and services, adding that of that sum 2 million have opted for the more lucrative family plan at $14.99 a month for up to six people.
Note that these are unpaid subscribers, folks dipping their toes in the Apple Music water. But that said, a solid start. And 2M of the 11M, or 18%, are family plan members.
Reports in Digital Music News and other outlets that monitor streaming music have indicated Apple’s intent to dominate streaming music – with a goal of 100 million subscribers, or double the total of all current services combined – despite its late entry into the field. This fall, Apple will unveil Apple Music for Android users in beta, part of CEO Tim Cook’s pledge to be platform agnostic with the service.
100 million paying subscribers? Here’s some math (please correct me if I get this wrong):
(82% * $9.99) + (18% * $14.99) = $10.89
That’s the average price per user, given 2M of 11M sign up for the Family Plan.
$10.89 x $100M = $1.09 billion per month, which is $13.07 billion in annual revenue. Not too shabby for a startup business, if they can reach that goal.
Update: Fixed a typo and the math that went along with it.