Beats Music had 110K subscribers in March with impressive free-to-paid conversion
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.
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.
Comments
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.
Cook and company aren't stupid or frivolous, so I'm sure they have made an informed decision before spending this kind of dough.
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."
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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.
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.
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.
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.
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.
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Yeah I know it's totally off-topic but shouldn't be missed.
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.
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
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?