The results of a new survey indicate that almost half of the subscribers who signed up for Apple's three-month free trial of its new Apple Music streaming service have already stopped listening. In addition, 61 percent of subscribers have turned off the auto renewal option for when the free trial ends.
Apple introduced its Apple Music streaming service six weeks ago with much fanfare and high expectations. The company hoped that consumers would be tempted to switch from rival streamers like Spotify and Pandora by offering a three-month free trial of the service, which included the much-hyped Beats 1 radio station.
On the surface, things have been looking good, as a reported 11 million customers have already signed up for the free trial. The real test, however, comes when the free trial ends and Apple looks to convert all those trial users into paying subscribers.
A new MusicWatch survey of 5,000 consumers 13 or older indicates reaction to Apple Music may not be so rosy. For one thing, considering the amount of iOS users downloading songs from iTunes, signup for the service is relatively low.
"In terms of benchmarking Apple Music, 40 percent of iOS users are buying digital downloads from iTunes, suggesting trial of Apple Music could be higher," said Russ Crupnick, a managing partner of MusicWatch. "That's the disadvantage of not being the first mover in a market where very good service currently exists."
Out of 77 percent of U.S. iOS users who said they were aware of Apple Music, just 11 percent were subscribers.
Perhaps more disturbingly, almost half the users surveyed, 48 percent, have already given up on the service and are no longer using it.
On the positive side, almost two-thirds of those still currently using Apple Music said they were likely to be willing to pay for the service after the expiration of their trial period. Once October hits, we'll see if that sentiment translates into the paying subscriber base, which Apple is seeking.