Beats Music had 110K subscribers in March with impressive free-to-paid conversion

Posted:
in General Discussion edited May 2014
Just 0.17 percent of the 183 million tracks spun on Beats Music in March were attributed to non-paying customers, purportedly leaked data indicates, suggesting that the service is converting trial users to paid subscribers at an impressive clip.




The figures were revealed in a March 2014 royalty calculation document discovered by music industry website The Trichordist and first noticed by Business Insider. According to the document, "Nonsubscription/ad-supported" plays totaled 312,139 in the period compared to 182,366,328 for the "Standalone Portable Subscription Service."

The seemingly high ratio matches up with a report from earlier this week in which it was said that Apple's eye was drawn to the headphone maker in large part due to the rate at which Beats Music was converting trial users. New users are given a seven-day free trial of the service, after which a $9.99-per-month subscription is required.

The document also gave a glimpse into Beats Music's overall subscriber numbers, showing that 56 percent -- or 61,521 of the 110,992 paying customers -- were on the family plan offered in partnership with wireless carrier AT&T. Because each family plan can support up to five individual listeners, that could represent as many as 308,105 people.

Additionally, despite representing a smaller share of accounts, individual subscribers played nearly twice as many songs as their counterparts. The Trichordist also noted that Beats Music appears to have negotiated a low royalty rate for songwriters, but those rights are not generally transferable in the event of an acquisition and will likely need to be renegotiated.

Overall, the numbers paint a somewhat rosy picture for the future of the fledgling service, which many believe is the catalyst behind Apple's alleged $3.2 billion bid for Beats Electronics. Beats Music's design and functionality -- including the "sentence" recommendation algorithm and curated playlists -- have won rave reviews from customers and could themselves form the basis of a similar Apple-branded service.
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Comments

  • Reply 1 of 141
    solipsismxsolipsismx Posts: 19,566member
    This rumour is looking better and better everyday.
  • Reply 2 of 141
    ralphmouthralphmouth Posts: 192member
    Quote:
    Originally Posted by SolipsismX View Post



    This rumour is looking better and better everyday.

     

    I have to admit this as well. I was not happy at first after seeing Dr. Dre's profanity and n-word laced youtube video.  I do not want Apple associating with that type of culture. I feel the same way if it was Eminem so it isn't a Black/White thing. I am getting more intrigued as I read about this acquisition and the reasons for it.

  • Reply 3 of 141
    lannoclannoc Posts: 16member
    Without knowing the details, which are now coming to light, no one could say if this was a good deal or not.
    Cook and company aren't stupid or frivolous, so I'm sure they have made an informed decision before spending this kind of dough.
  • Reply 4 of 141
    rogifanrogifan Posts: 10,669member
    solipsismx wrote: »
    This rumour is looking better and better everyday.
    You mean it's being spun by certain Apple sites to look better and better every day. ;)
  • Reply 5 of 141
    rogifanrogifan Posts: 10,669member
    lannoc wrote: »
    Without knowing the details, which are now coming to light, no one could say if this was a good deal or not.
    Cook and company aren't stupid or frivolous, so I'm sure they have made an informed decision before spending this kind of dough.
    There are no details coming to light. All of it is rumors at this point.
  • Reply 6 of 141
    solipsismxsolipsismx Posts: 19,566member
    ralphmouth wrote: »
    I have to admit this as well. I was not happy at first after seeing Dr. Dre's profanity and n-word laced youtube video.  I do not want Apple associating with that type of culture. I feel the same way if it was Eminem so it isn't a Black/White thing. I am getting more intrigued as I read about this acquisition and the reasons for it.

    I'd say there is a difference between being at your house and being in an interview with 60 Minutes yet here is Steve Jobs dropping "F-Bombs."


    [VIDEO]
  • Reply 7 of 141
    solipsismxsolipsismx Posts: 19,566member
    rogifan wrote: »
    You mean it's being spun by certain Apple sites to look better and better every day. ;)

    Sure, but it's still looking better. However, I'm not sure how this article is the result of AI spinning a positive from a negative or that their sourcing of the 110k subscribers in March is unsubstantiated.
  • Reply 8 of 141
    apple ][apple ][ Posts: 8,360member

    Leaked data?

     

    And how exactly did that get leaked and who leaked it?

     

    If there's one thing that Apple already has enough of, it's security leaks. They can do without any more leaks and people who have big mouths.

     

    I also don't find 110,000 to be an impressive number. 

  • Reply 9 of 141
    quansterquanster Posts: 34member
    Articles after articles ask why Apple didn't go after other services like Spotify. I think Apple picked the right service to buy with Beats. They are looking for the service that will help them corner the market in the future not buying the current market leader. Spotify doesn't have anything innovative to offer except its user base. If Apple can convert even 10% of the itunes account into subscribers, it would dwarf Spotify. And Beats have the tools to make that happen. I think the Beats branding will remains and will be the apple brand for all things music - Apple Beats. The 1 billion dollar in sales headphone hardware is just cherry on top. It is almost a risk free venture because they will make back the purchase price in a few year.

    And the argument on why they didnt buy a better headphone company... There are many that make higher quality headphones but how come they can't monetize it for sh*t? They have no idea about fashion and culture that's why. Like Apple, Beats showed they the way and now they start paying more attention to the hardware design. Apple can easily improve the audio but it is harder to improve the branding.
  • Reply 10 of 141
    Quote:
    Originally Posted by SolipsismX View Post





    I'd say there is a difference between being at your house and being in an interview with 60 Minutes yet here is Steve Jobs dropping "F-Bombs."






    Exactly.. What's good for the gander is good for the goose. 

  • Reply 11 of 141
    rogifanrogifan Posts: 10,669member
    solipsismx wrote: »
    Sure, but it's still looking better. However, I'm not sure how this article is the result of AI spinning a positive from a negative or that their sourcing of the 110k subscribers in March is unsubstantiated.
    what I mean by spinning is only putting up articles that put this in a positive light. And since Beats is not a public company how can we know if any of these figures/claims are accurate?
  • Reply 12 of 141
    rogifanrogifan Posts: 10,669member
    apple ][ wrote: »
    Leaked data?

    And how exactly did that get leaked and who leaked it?

    If there's one thing that Apple already has enough of, it's security leaks. They can do without any more leaks and people who have big mouths.

    I also don't find 110,000 to be an impressive number. 
    somebody wants us to think it is, hence the leaks.
  • Reply 13 of 141
    andysolandysol Posts: 2,506member
    solipsismx wrote: »
    Sure, but it's still looking better. However, I'm not sure how this article is the result of AI spinning a positive from a negative or that their sourcing of the 110k subscribers in March is unsubstantiated.
    $12 million a year. Wow- earth shattering numbers.
  • Reply 14 of 141
    apple ][apple ][ Posts: 8,360member
    Quote:

    Originally Posted by Rogifan View Post



    somebody wants us to think it is, hence the leaks.

     

    Yeah, there seems to be a lot of spin for an idea that nobody had even mentioned before.

     

    I do have my doubts of course, but I won't pass any final judgement until we hear all of the facts, and as of now, there aren't any at all, because Apple hasn't said anything at all.

     

    Until Apple opens its mouth and we hear the details, I will remain doubtful about this deal.

  • Reply 15 of 141
    gatorguygatorguy Posts: 18,261member
    Soli, thanks for that video link especially since it led to this one. All I can say is you gotta see these guys "back in the day".
    [VIDEO]

    Yeah I know it's totally off-topic but shouldn't be missed.
  • Reply 16 of 141
    asdasdasdasd Posts: 4,950member
    Not impressive, most are there because of an AT&T pre-install, probably on Android only.
  • Reply 17 of 141
    solipsismxsolipsismx Posts: 19,566member
    rogifan wrote: »
    what I mean by spinning is only putting up articles that put this in a positive light. And since Beats is not a public company how can we know if any of these figures/claims are accurate?

    I don't think anyone reasonable is not taking these with a grain of salt until there is definitive proof but they are still looking better.

    andysol wrote: »
    $12 million a year. Wow- earth shattering numbers.

    Considering the last number was 300k subscribers in total adding 110k (over 35%) in a single month is an impressive stat. It seems unlikely, assuming the number are true, that the addition for this one month is an isolated anomaly without any growth.
  • Reply 18 of 141
    apple ][apple ][ Posts: 8,360member
    Quote:
    Originally Posted by asdasd View Post



    Not impressive, most are there because of an AT&T pre-install, probably on Android only.

    Yeah, if you go to AT&T's site, you can see that they advertise the Beats service with some kind of LG Android phone.

     

    http://www.att.com/shop/wireless/beats-music.html

  • Reply 19 of 141
    island hermitisland hermit Posts: 6,217member
    Quote:

    Originally Posted by SolipsismX View Post





    I don't think anyone reasonable is not taking these with a grain of salt until there is definitive proof but they are still looking better.

    Considering the last number was 300k subscribers in total adding 110k (over 35%) in a single month is an impressive stat. It seems unlikely, assuming the number are true, that the addition for this one month is an isolated anomaly without any growth.

     

    ... but $3.2 billion?

  • Reply 20 of 141
    quansterquanster Posts: 34member
    steelraven wrote: »
    Exactly.. What's good for the gander is good for the goose. 
    Yea really. There is that double standard again. White people can drop F bombs with no problem but if it is a black man then he is a thug and etc. If I just became a billionaire, I would drop a couple of F bombs myself.
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