Apple (AAPL) has partnered with digital radio platform TuneIn through its audio streaming service, Apple Music, to expand its global reach, The Wall Street Journal reported. The deal makes its six live ad-free radio stations available to 75 million monthly listeners outside the tech giant’s ecosystem for the first time.
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Starting August 27, Apple Music’s radio stations, including Apple Music 1, Hits, Country, Club, Chill, and Música Uno, are now streaming on TuneIn’s platform.
A key part of this deal is that Apple Music will be promoted with a direct link on TuneIn’s platform. With this strategic move, AAPL aims to attract new listeners from TuneIn’s platform to buy its subscriptions, hoping to turn them into long-term, paying customers.
AAPL Aims to Regain Market Share
The move comes as Apple Music has been losing ground to Spotify (SPOT) in recent years. Recent data from MIDiA Research shows a decline in Apple Music’s subscriber market share. In the U.S., its share dropped from 30% in 2020 to 25% by the end of last year, while Spotify’s share grew from 31% to 37% over the same period. Globally, Apple’s share has also fallen from 16% to 12% since 2020.
One key reason for this drop could be that Spotify offers a free, ad-supported tier and uses it to encourage users to upgrade to a paid, ad-free plan. Meanwhile, Apple Music does not have a free tier. Instead, it relies on free trials bundled with new device purchases and its unique radio offerings.
By tapping into TuneIn’s massive user base, Apple aims to reach a wider audience, especially those who have never tried the service or switched to other platforms.
Is Apple a Buy, Sell, or Hold?
Turning to Wall Street, AAPL stock has a Moderate Buy consensus rating based on 15 Buys, 11 Holds, and one Sell assigned in the last three months. At $238.45, the average Apple stock price target implies a 3.81% upside potential.
