Apple Music is winning over US 25-34s

For streaming services in the US, courting the 25-34 age cohort is important because they are overrepresented as both music streaming subscribers and music aficionados, spending the most time and money on music. However, 25-34s have a slightly tenuous relationship with streaming. Compared to all other cohorts under 44, they spend the least time streaming music, and would be most likely to cut their music streaming subscriptions in favour of TV and film, if forced to choose.

Nonetheless, Apple Music has won over 25-34s in the US, who comprise 37% of its userbase in the country. By contrast, 25-34s make up only 17% of Spotify’s US userbase. Apple Music’s dominance partly stems from the fact that US users overall comprise 45% of its total userbase. However, the platform also appeals directly to many of this cohort’s generational quirks. Mainly, US 25-34s are looking for a human touch. The majority of this cohort places importance on listening to music that is curated by humans rather than algorithms, and would like a more social streaming experience, with tools like profile pages and messaging. They are also more likely to listen to full albums, a vestige of having grown up buying CDs. 

Apple Music adds humanity with trademark brands, like the Apple Music 1 (formerly Beats 1) radio station and Zane Lowe interview series, as well as providing context around artists’ music via documentaries, music videos, and even artist-led radio shows. While Apple Music is surely losing out on some 25-34s because it does not have a free tier — and 56% of this cohort streams music free — the Apple One subscription should also appeal to the 43% of 25-34s who are considering cancelling some subscriptions in favour of bundles. Indeed, 7% of 25-34s are Apple One WAUs, compared to the 4% consumer average. The area where Apple Music falls short for this cohort is social, which could be helped by adding a few simple social features. Enhanced playlist tools, in the vein of Apple Music’s collaborative ‘Friends Mix’, could amplify human curation while simultaneously making the experience more social. 

Roles

This report is relevant to the following roles:

Product Strategy