File this one under “Damn Millennials.”
If streaming music services are going to survive (or at least have some hope of turning a profit), they need to attract more paying subscribers. A lot more. But there’s a big, big problem.
Millennials and the generation behind them stream more music than anyone. However, most studies on music consumption say that people under the age of 25 spend no more than $40 a year on buying music. A year. They get everything they want from the free tiers of streaming music services and YouTube. That means asking them to spend $120 a year on a streaming music subscription is pretty much useless.
Apple’s Hail Mary plan is to offer students a steep discount. Instead of $9.99 a month, rumours are they plan to set a $4.99 price point for a new membership option. This offer is apparently coming to the US, Germany, Denmark, Ireland, Australia and New Zealand. (Sorry, Canada.)
The cost reduction will be available for up to four years following sign-up, and those years don’t have to be continuous. In other words, a student who takes breaks in between semesters can still sign up for a student membership when they return to school. In addition, those who are enrolled in Master’s programs are also able to sign up for a student membership, as it’s aimed at anyone attending college or university, regardless of degree.
Again, sorry Canada. I’d love to know why we’ve been left out.