Inside the Music Streaming Battle: Insights from Industry Leaders on Apple Music

Competition is a powerful force in the music streaming world. Just hours before Apple Music's launch, the Russian service Zvooq announced a new feature for subscribers: streaming music in high-quality 320 kbps, compared to Apple Music’s 256 kbps bitrate, aiming to attract audiophiles seeking superior sound.

Last week, Google Play Music became free for U.S. users, with Vice President Zahavah Levine stating, “We want to expand our fan base by allowing more users to experience the benefits of our service.” This move highlights the intensifying battle for listeners in the streaming arena.

While media and users speculate about Apple Music’s potential, streaming professionals focus on Apple’s strategic moves beyond just entering the market. A key challenge for Apple Music is the lack of a freemium tier. Mikhail Ilyichev, CEO of Zvooq, points out, “Most people casually consume music, expecting it to be free. Apple’s absence of a freemium model suggests their main goal is to retain and shift existing iTunes paying customers rather than attract new ones.”

Sonya Sokolova, founder of Zvuki.ru, believes the increase in streaming platforms benefits the industry. Apple’s entry, competing with Spotify, Deezer, and Pandora, is significant due to Apple’s technological leadership and trendsetting. However, she notes that current streaming models offer minimal interaction and investment in musicians. “Apple’s payouts are insufficient for artists. The next evolution might be new digital labels acting as agents across all platforms,” she predicts.

Musicians offer diverse perspectives. Max Lakmus, bassist for Bi-2, supports all music services but doubts that royalties alone sustain artists: “Our income mainly comes from concerts. Waiting for royalties to feed musicians is unrealistic.”

Legendary artist Boris Grebenshchikov responded to questions about streaming royalties with, “I have no opinion,” while Vladimir Shakhrin of Chaif declined to comment on streaming altogether.

Users form the third crucial perspective. Only about 5% of consumers pay for music access, explains Zvooq’s Mikhail Ilyichev. “Around 95% of the general public will never pay for music access; the battle is fierce for the dedicated 5% of music lovers.”

Apple Music’s pricing varies globally. In Russia, the subscription costs 169 rubles, which Sonya Sokolova jokes is “a gift to Yandex.Music.” Advertising agency head Andrey Buzina finds this affordable compared to Spotify’s pricing.

Evgeny Kaznacheev from Ecwid notes, “It’s low, especially compared to the U.S. price of $9.99 (about $10). It’s interesting to imagine a future where app subscriptions work similarly—pay a monthly fee to access any app. It seemed crazy when iTunes Store launched 12 years ago to offer unlimited content for such a price.”

Apple may be the last major player entering the music streaming market. The question remains: will Apple revolutionize the streaming landscape as they did with the iPhone eight years ago, or will they integrate into the existing global ecosystem? Qiwi founder Andrey Romanenko believes Apple waited too long, allowing Spotify to dominate. “Within 3–6 months, we’ll see who truly wins.”

Teamo CEO Andrey Burin is optimistic: “Apple has the resources, experience, and market insight to deliver a top-tier product. Users won’t be disappointed, especially since they won’t lose access to their traditional music purchasing methods as the service rolls out.”

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