Analysts Look At Apple Music In A Positive Manner

The software giant has decided to launch a new music service and analysts are looking at it in a positive manner.

Apple has launched a new updated Apple Music service which has attracted quite a lot of attention of the analysts in the industry. This new video streaming service has been launched on Tuesday and analysts believe this is not going to work too much for the tech giant in the initial stages, if that is what the investors are expecting. The iPhone making firm has been working on this project for some time now and before the release, the analysts showed many bearish signs as to why they thoughts this service is not going to be very profitable for the company. However, a recent analysis has shown that this service might not turn out to be so bad after all and it is very much expected that in near future, the stock value of the company increases with the help of the popularity and usage of this streaming service.

Apple is clearly not the first company to be stepping into the video streaming business. Two main giants in the industry are none other than Pandora and Spotify who have been maintaining high position in the video viewing industry for quite some time now. These companies are no exactly similar as Pandora is famous for providing free radio services through the process of streaming to the users and the main source of income for the firm is through adverts while on the other hand, Spotify works through providing video streaming services but by following subscription plans.

Pandora currently has a user base of around 79.2 users as per the reports that emerged after the first financial quarter of the current year. It was seen through the reports that the firm managed to secure around 10 percent of the total radio listeners in the United States which was noted down as a huge achievement. As for Spotify, the same cannot be said it has around 75 million users and around 20 million of those users are paying $9.99 every month as subscription fees.

Analysts who have been comparing all the three companies for a better inside look on the kind of competition being stirred up are of the opinion that Apple Music going to turn out to be a dangerous threat Spotify as the software company has decided to offer its monthly subscription plan for a price tag of $9.99 too, just like its rival in the industry. The MAC producers will also be offering a huge number of 30 million tracks to the users which might take away much of the users from Spotify.