Apple Loses Millions of Users, But Converts 6.5 Million To Pay For Music

Late Monday, Apple CEO Tim Cook said that it has convinced 6.5 million people to pay for its Music service. USA Today said since its launch in June, Apple Music offers a monthly service that allows subscribers to have unlimited access to music for USD9.99. The introduction also signaled Apple’s aspirations to compete for the music streaming market share with Spotify and Rdio.

Investment firm FBR & Co said on Tuesday that Apple’s numbers were impressive when compared to Spotify. It has been noted that Apple converted a third of its 20 million users to pay for the service in under four months.

"We would characterize this initial stage of the launch as a 'triple' in the streaming ballgame," FBR & Co analyst Daniel Ives told Apple Insider.

On the other hand, USA Today said that while the conversion rate was impressive, the signups were just a slice of the users, who initially tried on the service for free.

Ives agrees, and suggests that Apple needs to rev up its efforts. He said, "Now the goal is for Apple to further spread the gospel to/convert more trial customers over the next three to six months while adding unique content and services."