Who Will Be the Apple of Streaming Music?
Since April, Rhapsody has gained over 100,000 net new subscribers. The total number is upwards of 750,000. The company estimates that there are around 1.5 million US music subscribers, which means that it has captured around half of the market. While mobile has helped fuel their growth, Rhapsody is also speaking with cable television companies.
They hope that by bundling the service with other amenities like cable TV and high-speed internet, fans will be more prone to accept an extra charge of $10 on their monthly bills for music, as opposed to paying for it separately.
To put Rhapsody’s subscriber numbers into context, it’s worth noting that Spotify is reported to have over 750,000 paying users too. If Spotify comes stateside in 2011, they will be a direct competitor to Rhapsody, as well as, everyone else.
"In 2011, someone will become the Apple of streaming — perhaps Apple itself. Consumers are getting closer and closer to accepting renting over owning content," Jason Feinberg writes. "Companies such as MOG, Rdio, Spotify, and Rhapsody are poised to capitalize on this. With good timing, savvy marketing, and clear messaging that succinctly communicates the benefits, a streaming music provider can easily take the leading role in this race."
It looks like Rhapsody has a running start, but Spotify or Apple could catch up.
Originally published at hypebot.com