The first bigger steps in the music industry Apple started with iTunes. In 2000, Apple acquired SoundJam MP, a popular MP3 player software for Mac, developed by former Apple engineers. This acquisition was the strategic move by Apple to enter the digital music market. The SoundJam MP software was rebranded and further developed to become iTunes, which was officially launched in January 2001. iTunes revolutionized the way users managed and purchased music, offering a seamless integration with Apple’s hardware, particularly the iPod, which was introduced later that year.
The initial iTunes goal was to manage digital music and create custom CDs for Mac computer users. Later, iTunes Music Store introduced in 2003 had a profound impact on the music industry, fundamentally changing how music was distributed, purchased, and consumed. iTunes originated the concept of digital music stores, allowing users to buy individual songs or entire albums online. This shift significantly reduced the reliance on physical media like CDs and vinyl records. One of the most notable impacts was the initiated $0.99 per song pricing model, which made music more accessible and affordable. This model also helped to combat music piracy by providing a legal and convenient alternative to illegal downloads. Additionally, iTunes was a platform for independent artists to distribute their music without the need for a major record label and in this way democratized the music industry. Seamless integrations with iPod and later - with iPhone and iPad created a comprehensive ecosystem that enhanced user experience and loyalty.
iTunes Radio, announced in June 2013, was Apple’s foray into the streaming radio market, offering users a free, ad-supported service with the option for an ad-free experience through iTunes Match subscription. It was advertised as “an incredible way to listen to personalized radio stations which have been created just for you”. The radio featured curated stations based on genres, artists, and user preferences, leveraging Apple’s vast iTunes library to provide a personalized listening experience. One of its notable achievements was its seamless integration with Siri, allowing users to request specific songs or stations via voice commands.
The next Apple evolution step followed with the acquisition of Beats Electronics in 2014. Beats Electronics was renowned for its high-quality audio products, particularly its headphones, earbuds, and speakers. The flagship product line included popular models like the Beats Studio, Beats Solo, and Powerbeats. These products were celebrated for their stylish design, robust build quality, and powerful bass response, making them a favorite choice among music enthusiasts and professionals alike. Additionally, In 2012 Beats expanded its portfolio with the Beats Pill speakers, offering a portable high-fidelity audio solution. The same year the company acquired the online music service MOG which became the basis for the Beats Music launched at the beginning of 2014. Beats Music emphasized the combined algorithmic personalization with curated music suggestions by professionals. The Beats focus on combining cutting-edge technology and personalized music services had solidified its position as a leader in the premium audio market.
The acquisition of Beats Electronics by Apple in 2014 significantly enhanced Apple’s portfolio in several ways. Firstly, it provided Apple with a well-established brand in the audio market, allowing it to compete more effectively against other high-end audio manufacturers. The integration of Beats’ audio technology and expertise into Apple’s product lineup improved the sound quality of Apple’s devices, addressing previous criticisms of Apple’s EarPods. Moreover, the acquisition included Beats Music, a streaming service that bolstered Apple’s entry into the streaming music industry, eventually evolving into Apple Music.
Apple Music was officially announced on June 8, 2015. Its key features included
Human Curation and Algorithms - Apple emphasized the combination of human curation and algorithmic recommendations to create personalized playlists.
Beats 1 Radio - a 24/7 global radio station featuring live shows from renowned DJs and artists.
Apple Music Connect - a platform for artists to share exclusive content directly with fans.
Integration with Siri - users could ask Siri to play specific songs, albums, or playlists, enhancing the hands-free experience.
This move not only expanded Apple’s ecosystem but also attracted a broader audience, enhancing customer loyalty and driving revenue growth.
Media had mostly encouraging reviews even thought many commentators immediately saw possible Apple Music improvements. NYT wrote that “Apple Music, the company’s reboot of iTunes released Tuesday for Apple devices and personal computers (including Windows), sounds like a pizza straight out of Microsoft’s kitchen. Apple said “yes” to cramming every popular method of consuming music into one app: a streaming service similar to Spotify; radio features that compete with Internet and satellite services like Pandora and Sirius XM; and its old music player for listening to downloaded songs”. USA Today put straight - “listeners will agree to pay”. Spin noticed that Apple Music looked pretty familiar to anyone who used Beats Music. Mashable agreed that “much of the Apple Music experience really is Beats Music. And this is a good thing”. The Verge noted that Apple Music is “an impressive if slightly confusing first cut at a full-featured music streaming service”. Fortune reviewer wrote “my overall experience has been mixed: going from being utterly amazed by Siri’s suggestions to endlessly frustrated with how to add a song to my Up Next playlist”. Vulture concluded with “no streaming service has yet to solve the mystery of how to read the minds of its users - and neither has Apple”. RollingStone’s conclusion was very positive - “with its vast selection of music and smartly curated playlists and radio, Apple Music is robust enough to compete with, and possibly supplant, Spotify and Pandora as the go-to service for music fans”.
At the time of launch Apple Music had to compete primarily with streaming services like Spotify, known for its extensive music library and robust recommendation algorithms and Pandora, famous for personalized radio stations. Apple Music differentiated itself with exclusive releases, a strong emphasis on human curation, and seamless integration with Apple’s hardware-software ecosystem. The whole strategy worked - within six months Apple Music had garnered over 10 million subscribers, by the end of 2017, over 30 million subscribers, reflecting a steady increase in a user adoption.
Since its launch, Apple Music has undergone several updates and enhancements including Music Awards in 2019, Apple Music TV, a 24-hour music video channel in 2020 and the lossless audio, spatial audio support with Dolby Atmos in 2021. Apple Music continues to evolve, maintaining its strong position as a leading music streaming service by consistently adding new features and improving user experience.