Apple Takes On Spotify, Expands Music Service To TuneIn's 75 Million Users: Report
News Summary
Apple Inc. reportedly plans to expand its music service by making its curated radio stations available worldwide through home speakers and connected cars, via an arrangement with TuneIn. This move aims to draw TuneIn's 75 million monthly active users into Apple's music ecosystem, converting radio listeners into paid subscribers. This strategic shift comes as Apple Music's U.S. market share of digital music subscribers has declined from 30% in 2020 to 25% by the end of last year, while Spotify's share increased from 31% to 37% over the same period. Globally, Apple's share also dropped from 16% to 12% since 2020. Apple's strategy leverages its curated radio stations, a feature not offered by Spotify, which relies on algorithmic music curation. Apple Music, lacking an ad-supported tier, focuses on converting free trial users into paid subscribers. Additionally, Apple opened iOS 26's lock screen animation to third-party music and audio apps in June 2025, ending its exclusive tie to Apple Music. Meanwhile, Spotify has been focusing on expanding its user base through price hikes and new features, including a messaging function for users over 16.
Background
Apple Music, launched in 2015, is Apple Inc.'s music and video streaming service designed to compete with market leader Spotify. The service offers access to millions of songs and is distinguished by its exclusive curated content and global live radio stations like Beats 1 (later renamed Apple Music 1). Despite Apple's vast device ecosystem, its music service has faced intense competition from Spotify in terms of market share in recent years. Spotify, with its freemium model, extensive podcast content, and robust algorithmic recommendations, has maintained a dominant position in the global digital music subscription market. Apple's previous market strategy primarily relied on free trial offers bundled with new device purchases and its ecosystem integration advantages.
In-Depth AI Insights
What is the strategic significance of Apple's move, and can it effectively reverse its declining market share? - Expanding radio access via TuneIn marks a significant shift in Apple Music's growth strategy, as it pushes core content beyond its own ecosystem for the first time. This indicates Apple's recognition that relying solely on device sales and ecosystem bundling is insufficient to counter Spotify's growth. - Apple's curated radio stations are a differentiating factor. Exposing them to TuneIn's 75 million users directly targets a large pool of potential subscribers, bypassing some users' dependence on Apple devices. - However, whether radio alone can effectively convert to paid subscribers remains questionable. TuneIn users may be accustomed to free content, and Apple Music's lack of an ad-supported tier might create resistance in the direct conversion path. How might this strategy reshape the competitive landscape in music streaming? - Apple's move directly encroaches on Spotify's user acquisition channels, particularly in key areas like home speakers and connected cars, which are significant daily listening environments for users. - Spotify's strength lies in its vast free user base and robust algorithmic recommendations. Apple's strategy offers a more