The world’s largest music store is about to get some hefty competition. iTunes sells more music than all other mediums combined. The competition? How about Beats Music, the $3-billion investment Apple made to bring streaming music (and headphones) to the masses. Apple CEO Tim Cook two years ago:
Our core philosophy is to never fear cannibalization. If we don’t do it, someone else will. We know that iPhone has cannibalized some of our iPod business. That doesn’t worry us.
But isn’t Spotify leading the world into the age of streaming music and isn’t that putting a big hurt on Apple’s iTunes gravy train?
Spotify was launched in October 2008 by Swedish startup Spotify AB. As of 15 September 2010, the service had approximately 10 million users, including 2.5 million users with paid subscriptions. The service reached 20 million users (5 million paid) by December 2012, and 60 million users (15 million paid) by January 2015.
Apple has about 800-million iTunes users, accounts, and credit cards.