A few weeks ago, there were a rumor going around that Apple would launch a Spotify-like service. It turned out to be false alarm. But it's just a matter of WHEN not IF when Apple launch it (iStream perhap?).


At the SXSW Music show this year, [B]people are buzzing that Apple is getting close to launching a subscription music service to take on Spotify.

And of all the rumors floating around, this has to be the juiciest: executives keep pointing to a possible on-demand streaming service ahead from Apple, including a tight tie-in with iCloud and iMatch. That would present a huge problem to players like Rhapsody and Spotify, though Apple is playing it characteristically mum. "Apple doesn't like to lose in any category, they like to dominate," one executive noted.

why is it likely?

Spotify success: It grew from 1 million to 3 million paid subscribers in a space of ~10 months (March 2011 to Jan 2012). It is expected/projected to make $889 million in revenue in 2012. (2011 revenue was $249.1 million).

January, 2010:------------ 250,000 paid subscribers
March 17, 2010:----------- 320,000
July 20, 2010: ---------------- 500,000
December 8, 2010: ------ 750,000
March 8, 2011:--------------- 1,000,000
July 14, 2011: -----------------1,600,000
Sept 21, 2011: ---------------- 2,000,000
Nov 23, 2011: ------------------2,500,000
Jan 26, 2012: -------------------3,000,000


(Reuters) - Digital music streaming service Spotify may see revenues top 6 billion Swedish crowns ($889 million) this year as it pushes ahead with its rapid expansion on both sides of the Atlantic, founder Daniel Ek said in a newspaper interview on Friday.
Revenues, 2011: $249.1 million
Revenues, 2012 (projected): $889 million USD

That's A LOT of growth right there.

In addition,

Spotify already overtook Itunes in Sweden (84% to 16%, (Norway too if I remember correctly) and Spain.

It is on track to overtake Itunes in France within 18 months.

All the more reasons why it's a safe bet that Apple is working on a Spotify-Like Service.

What do you think of the name iStream?

All of Spotify's $10 premium subscription memberships is done through smartphones. The iphone is Apple's gateway into the music subscription business, especially if the Big Carriers like Verizon, ATT, Sprint bundle the Apple music subscription service.

That's why I put this topic in the iPhone Forum. It's the most appropriate I think.