In a significant move, two major car manufacturers, Fiat Chrysler Automobiles (FCA) and Volkswagen, have announced that they will begin offering free Apple Music subscriptions to customers purchasing new vehicles with CarPlay starting on May 1, 2018.
Boosting Apple Music Subscribers and Countering Spotify’s Filing
This move is aimed at boosting Apple Music subscribers, particularly in the wake of rival Spotify filing to go public. By partnering with FCA and Volkswagen, Apple aims to expand its user base and strengthen its position in the music streaming market.
FCA Offers: Up to Six Months Free Apple Music Subscription
In the U.S., FCA will offer customers up to six months free of Apple Music with the purchase of any new Chrysler, Dodge, FIAT, Jeep, or Ram vehicle with standard CarPlay support. New subscribers will receive the full six months free, while existing subscribers will get three months free. It’s worth noting that users will receive individual memberships, not family plans.
The offer is valid for a year, ending on April 30, 2019. FCA customers will then gain access to Apple Music’s vast library of 45 million songs and support for Beats Audio sound. With CarPlay, drivers can also make and receive calls and messages, listen to podcasts and audiobooks, get directions or updates on traffic conditions, and more.
European Deal: Volkswagen Partners with Apple
In Europe, Apple has teamed up with Volkswagen for a similar deal. Customers buying a new VW with CarPlay will also be given six months of Apple Music for free if they’re new to Apple Music, or three months if they’re existing subscribers.
A New Strategy: Acquiring Music Subscribers through Pre-Installed Services
This is the first time Apple Music has offered deals like this for auto customers. However, acquiring music subscribers with a pre-installed service is not something unique to Apple. Sirius XM regularly ships new cars with its services already switched on, enticing drivers to later convert to paying subscribers.
A Zero-Sum Game: Apple Music vs. Spotify
Both Apple Music and Spotify are targeting customers who prefer to pay for access to on-demand, streaming music rather than purchasing downloads. The competition is fierce, with a zero-sum game at play. If you choose to pay for Apple Music, you’re unlikely to also pay for Spotify – and vice versa.
Spotify’s Filing to Go Public: A Boost to Its User Base
Spotify is currently ahead of Apple Music in terms of paid subscriptions. Its free service has 159 million monthly active users, while its premium product boasts 71 million subscribers. In contrast, Apple Music has 36 million global users.
Apple’s Strength: CarPlay and Its Own Infotainment Platform
However, Apple has a significant advantage – its own in-vehicle infotainment platform, CarPlay. By leveraging this platform, Apple is clearly willing to partner with car manufacturers like FCA and Volkswagen to expand its user base.
Conclusion
The partnership between FCA, Volkswagen, and Apple Music marks a significant development in the music streaming market. As the competition between Apple Music and Spotify continues to intensify, it remains to be seen how this deal will impact the industry as a whole.
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Join the Conversation: Share Your Thoughts on Apple Music and Spotify
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