China’s Response to Apple Music Launch in the Country08. December 2015
Millions of songs and access to iBooks and iTunes are offered by Apple to consumers, but it seems that the promotions are not appealing to China’s consumers. With the snazzy yet cheaper smartphones available in the country, consumers still prefer the existing technology. Moreover, according to an analyst, language barriers also contribute to the decline of sale in China.
According to Karissa Chua, the Euromonitor International Consumer Electronic Analyst, she considered China as a difficult market. Market penetration for apple music is tough because Chinese prefer local distributors. To draw back the concern, launching the service to Android and Apple iPhone is the smartest strategy to do.
Apple music service in China dives down to the lowest charge per subscription, which is 10 Yuan or $1.57 per month, compared to its fee in the U.S that costs $9.99 a month. Apple music service in Indonesia costs $5 while in India is $1.80. iTune high definition movie is available for 18 Yuan per month for new release. You can rent high- definition movies for 5 Yuan a month also.
Apple’s Senior Vice President of Internet Software and Services, Eddie Cue, said “Customers in China love the App Store and have made it our largest market in the world for app downloads. One of the top requests has been more great content."
Admittedly, Apple’s entry to China is overdue compared to Baidu Music and Tencent’s QQ, who have been actively working in the country for several months. These local players offer music streaming services free of charge, which is difficult to overhaul. According to Sandy Shen, Gartner’s Research Director for Mobile Devices and Consumer Services, the market will be too stiff for Apple if they have exclusive contents demanded by local consumers.
Consumers are price sensitive and they demand lower costs. They also practice illegal downloading of applications and subscriptions for free that’s why it requires effort from Apple for the consumers to subscribe to the online services.
Apple has a strong brand recognition that may contribute to a seamless launching of Apple music; however it doesn’t guarantee a boost in the subscriptions’ sale.
Streaming services quickly get popular and became the most preferred means of media consumption. Apple engages to the streaming business because of the larger opportunity it offers. Based from records of the Recording Industry Association of America on 2014, streaming services revenue jumped to $1.87 million or 29% while digital download’s sale goes down to $2.58 billion or 8.7%.
With the concerns faced by Apple on its launch in China, several users are still delightful of having Apple music in the country.
User "Hantaiketaodexiaohei" said: Apple Music finally! First thing I'll do is to follow Taylor [Swift]!"
User "nijiandanshu”. said: "Today I wake up to news that Apple Music is available in China! For just 10 yuan every month, I can watch movies on iTunes too! Though it doesn't seem like I can purchase music yet, but it's still awesome,"
It’s still too early to say what will be the Apple Music ‘s status quo in China. Let’s see what will happen next.
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