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Business Operations Business Models

How Does Apple Music Make Money (Business and Revenue Model)

The Apple Music business model

Apple Music logo
Here’s what you should know:
  • What is Apple Music, and how does Apple Music work?
  • How does Apple Music make money?
  • Subscription Revenue
  • Apple Music profit and revenue
  • What is the Apple Music business and revenue model?
  • Apple Music funding, net worth, and market cap
  • Apple Music subsidiaries, acquisitions, and exits

How does Apple Music make money? Here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the Apple Music business and revenue model, how much money Apple Music makes per year, and how Apple Music works.

What is Apple Music, and how does Apple Music work?

Apple Music is a music streaming platform developed by Apple Inc.

Launched in 2013 by Apple Inc., Apple Music now has more than 88 million monthly users and 90 million songs on its streaming platform.

So, how does Apple Music work? To listen to Apple Music, simply go open your Apple Music or iTunes app, or go to music.apple.com to subscribe.

Once open, go to the ‘Listen Now’ tab and tap on the trial offer available on the screen. You will then need to choose a subscription plan and use your Apple ID login to make the purchase.

You can then begin streaming from over 90+ million songs plus access to additional features depending on the plan you have.

Some of Apple Music’s competitors include Spotify, AudiomackPandoraSoundCloud, TIDAL, Deezer, and other music streaming platforms.

Apple Music App | Apple Music Business Model | How Does Apple Music Make Money? | How Does Apple Music Work?
Source: Apple Music

How does Apple Music make money?

According to Apple Music, Apple Music has more than 88 million monthly users on its streaming platform globally. So how does Apple Music make money off of all those users?

Below is a breakdown of how much money Apple Music makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how Apple Music makes money in 2022

Apple Music has a revenue model that makes money in just one (1) way; through its subscription revenue.

#1. Subscription Revenue

Apple Music makes all of its money through its paying users.

There is no free version of Apple Music. So after a 1 month free trial, all users are billed $4.99 to $14.99 per month depending on which plan they choose if they want to continue having access to Apple Music.

Apple Music offers four (4) tiers to choose from; Voice, Student, Individual, and Family. All of which offer access to Apple Music’s library of 90+ million songs, 30,000 curated playlists, and an ad-free experience.

Furthermore, each tier comes with additional features such as up to 6 users to an account, lyrics view, the ability to download songs, and more – depending on the chosen plan. Which you can see below.

How much does Apple Music cost?

  • $4.99 to $14.99 per month depending on the subscription tier

Note: Because Apple Music does not offer a freemium version, all 88 million of their users are paying users.

Apple Music profit and revenue

While Apple does not solo out Apple Music’s revenue on their Annual Report, we can estimate a median revenue of $879.1 million by taking the number of paying subscribers they have (88 million) and multiplying that by the median subscription plan ($9.99).

Note: Because Apple Inc. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Apple’s publicly released financial reports, including annual reports, through Apple’s investor section on their website.

What is the Apple Music business and revenue model?

Apple Music makes money through a few revenue models that they combine within their company, they are:

  • Subscription business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

Apple Music funding, net worth, and market cap

According to Apple’s Crunchbase profile, Apple, the developer of Apple Pay, has raised $6.2 billion over 7 rounds and has a market cap of $2.5 trillion as of September 2022.

Apple Music subsidiaries, acquisitions, and exits

To date, Apple Inc., the developer of Apple Music, has made a total of 127 acquisitions, 24 investments, 17 lead investments, and 12 successful exits.