Project & Portfolio 2

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A Market Analysis for
Apple Music
Laura Hernandez Gil
Full Sail University
Project & Portfolio II: Business and Marketing
November 21, 2021

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EXECUTIVE SUMMARY
This report provides analysis and research for Apple Music and its features, financial
highlights, and market position. The analyzed data exposes both positive and negative feedback
and opinions about the platform's features and technological advancements. And, additionally,
the company's marketing and social involvement efforts.
The report finds the company is on a beneficial growth path, though it can still improve
in some areas to keep or increase its favorable position in the market. The recommendations
included at the end of this report include the implementation of new features, marketing
strategies according to the target audience, and active participation in ecological matters.

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OBJECTIVE
The central purpose of this analysis and research is to identify Apple Music's
differentiating factors against its competitors and suggest areas of improvement to keep or
increase its position in the music streaming industry.
RESEARCH METHODOLOGY
In this report, the information gathered was mainly found using external and secondary
research from the internet and a few online databases. It contains both quantitative and
qualitative data. All information was compiled during the last week of October and the third
week of November 2021. Most facts and metrics are from the past five years, and the oldest
source dates back to 2017.
RESEARCH AND KEY FINDINGS
Apple Music, introduced on June 30, 2015, is a subscription-based music streaming
service offering its consumers access to over 90 million songs and features to heighten the music
experience. Oliver Schusser became the head of the company worldwide, back in 2018, after
working with the parent company for over ten years. Today, the streaming service holds over 72
million subscribers worldwide and is available in over 167 countries.
Financially, the company is in exceptional and increasing shape. Apple Music has
become one of the lead competitors in the music streaming world against Spotify, Amazon
Music, and Deezer. With an approximate revenue of $4.1 billion in 2020, the company accounts
for 7.6 of the parent's company service revenue (Curry, 2021) and currently holds 16% of the

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music streaming market share (Statista,
2021). In fact, "Apple Music is the
second most popular music streamer in
the world" (Friedman, 2020). And,
from a music business point of view,
with a revenue of $0.00783 per stream,
it is the third highest paying platform
for artists, building a respectable
reputation amongst the industry.
With the launch of their new lossless audio and Spatial Audio features (with Dolby
Atmos) at no extra cost, the company upped the game and has everyone talking about these new
additions. According to Bowe (2021), this differentiating factor places Apple Music as one of the
music streaming services with the best lossless streaming deals. The Apple Music 1 Radio, voice
plan, and lyrics view are also some of the platform's favorites to the public (What Hi-Fi, 2021).
However, when it comes to more general
features adopted by competitors that make the
user experience more friendly (like
collaborative and sorted playlists), the
streaming service falls short according to the
audience. "But as good as Apple Music is – and, having tried the alternatives, we reckon it is
among the best music streaming services around – it falls short in key areas" (Grannell, 2021).
Apple Music's target audience ranges between today's young adults and early
professionals. According to Lovejoy (2017), "When you look at those who choose to pay for a
music streaming service... Apple is significantly more popular with both Millennials (25-34) and
Statista: Share of music streaming subscribers worldwide by
company, 2021
Image from Pisapapeles

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Gen Z (18-24)." Now, Apple Music has a very active presence and reach on most social media
platforms overall. But, the company has yet to build its image on TikTok. "TikTok is now a top
favorite platform not just among Gen Z teens, but among all age groups of young consumers"
(Gen Z & Millennials 5 Favorite Social Media Platforms Now, 2020). While the company does
have an account on the social media platform, the last time it showed to have a constant
appearance dates back to 2018. From that time, their TikTok videos show approximately 70,000
- 150,000 views on each, which is a powerful reach to the target audience.
Lastly, as mentioned above, the company has a solid general idea of its marketing efforts
across social media. Through its posts, it has shown support for inclusion and diversity and new
artist and songs releases. These posts have helped
to build a positive social and ethical image online
for the company. However, the company itself has
not shown much recognition about environmental
or ecological matters. This is different from its
parent company Apple, which is currently working
to become carbon neutral across its supply chain by 2030 and has urgently engaged in diverse
sustainability initiatives and projects (Business Wire, 2021). In the article titled "Why all
businesses should embrace sustainability" by Professor Knut Haanaes (2016), he explains how
several large companies started to implement forward-thinking sustainability plans. He also
mentions how these plans will help the earth while acting as a competitive strategy for many
businesses.
Image from Yahoo! News

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CONCLUSIONS
Apple Music has undoubtedly proven to be of the best music streaming services around.
Having Apple as their parent company and having a short time in the market, they have quickly
grown into the industry, reaching high numbers of users and followers. Financially, the company
appears to be in a great position with high annual revenue and market share. With the
implementation of new striking features that benefit both fans and artists, they are achieving the
goal of enhancing the music experience for everyone. However, the improvement journey that
Apple Music is in will continue to expand as they acquire more features and engage in more
social matters according to their values. While they have a working strategy to influence their
target, more initiatives could further expand their reach. Overall, Apple Music is on the right
track for further success and will continue to be a leader in the music streaming world.
RECOMMENDATIONS
Based on the research findings, Apple Music should prioritize developing some of the
more simple features (popular in music streaming services) before continuing to add their more
striking and innovative characteristics. These include, and are not limited to, collaborative
playlists, sorting options, and following bands and artists. While this strategy may delay the
launch of more significant ideas, it will improve the platform and its interface, making it
friendlier to users and enhancing the experience. Having these features will also help Apple
Music to be on the same foundation level against competitors and can then follow to continue
building its unique characteristics from there.
On the other hand, as shown in the research and findings area, the company should start a
new social media strategy specifically focused on Gen Z and Millennials. While they have done
a great job overall, Apple Music should be active on the most popular platforms for this audience

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in the next couple of years. Particularly TikTok, which has been proven to be a famous one
amongst the public. With further research, the specific type of content, time usage, and other
metrics regarding these target markets' relation to TikTok would help develop this idea. The
suggested implementation period is within or throughout the next 1-2 years maximum, as social
media moves quickly, and the company could profit from better marketing on TikTok and
similar platforms. Potentially, more users and enhanced reputation.
As another improvement strategy, Apple Music should get involved regarding
environmental and ecological concerns on social platforms and media. Being a part of different
campaigns and movements, or even just showing support through media, will build a positive
and more ethical and moral reputation. A quick and effective goal to achieve this would be to
research the next big environmental date or campaign to participate in actively, or another one
would be to join the parent company (Apple) on its environmental initiatives. Implementing this
as soon as possible will also improve the brand's image and reach and audience of environment
and ecology enthusiasts.

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REFERENCES
Apple Music review. (2021, June 23). What Hi-Fi?
https://www.whathifi.com/apple/music/review
Bowe, T. (2021, November 18). The Best Lossless Music Streaming Services in 2021. Gear
Patrol. https://www.gearpatrol.com/tech/audio/a35841419/best-lossless-streaming-
services/
Curry, D. (2021, November 11). Apple Music Revenue and Usage Statistics (2021). Business of
Apps. https://www.businessofapps.com/data/apple-music-statistics/
Friedman, A. (2020, April 4). Apple Music’s success is helping the company meet a long time
revenue goal. Phone Arena. https://www.phonearena.com/news/spotify-apple-music-had-
the-majority-of-music-streaming-subscribers-last-year_id123571
Gen Z & Millennials’ 5 Favorite Social Media Platforms Now. (2020, May 6). YPulse.
https://www.ypulse.com/article/2020/05/06/gen-z-millennials-5-favorite-social-media-
platforms-now/
Grannell, C. (2021, June 18). Improving Apple Music – 10 ways it could be better. TapSmart.
https://www.tapsmart.com/apps/improving-apple-music/
Haanaes, K. (2018, August 16). Why all businesses should embrace sustainability. IMD Business
School. https://www.imd.org/research-knowledge/articles/why-all-businesses-should-
embrace-sustainability/
Lovejoy, B. (2017, September 8). While Apple Music is the least popular streaming music
service, it’s #1 for younger listeners. 9to5Mac. https://9to5mac.com/2017/09/07/apple-
music-popularity-gen-z/
(October 27, 2021 Wednesday). Apple Charges Forward to 2030 Carbon Neutral Goal, Adding 9
Gigawatts of Clean Power and Doubling Supplier Commitments; Ahead of COP26,

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Apple launches 10 new initiatives to support communities around the world. Business
Wire. https://advance-lexis-
com.oclc.fullsail.edu/api/document?collection=news&id=urn:contentItem:63Y3-MYF1-
DXY3-0061-00000-00&context=1516831.
Statista. (2021, November 16). Subscriber share of music streaming services worldwide 2021.
https://www.statista.com/statistics/653926/music-streaming-service-subscriber-share/
Images:
Apple-Music-Spatial-Audio-Dolby-Atmos. (n.d.) Pisapapeles. https://pisapapeles.net/ya-esta-
disponible-apple-music-con-hi-res-lossless-y-dolby-atmos-en-la-beta-publica-para-
android/apple-music-spatial-audio-dolby-atmos/
Apple's rare earth recycling steps up environmental response. (2020, October 13). Yahoo! News.
https://news.yahoo.com/apples-rare-earth-recycling-steps-213334642.html