It’s working, at least if you believe these numbers coming from Beats.
Beats Music launched on January 21st of this year. Just two months later, Beats already has 525,000 paying subscribers, according to details now being leaked by the company.
In fact, Beats was signing up 1,000 new paying subscribers every day in its first month, according to company data. “The company enrolled about 28,000 customers to the $9.99-a-month music service before free trials with AT&T,” Bloomberg just reported, citing insider sources who “requested anonymity because the information is private”.
But that was before a gigantic funnel began taking hold. According the the same sources, Beats started driving 750,000 free trials starting January 31st, with 30-day (and 90-day) windows being used.
Of that number, an astounding 70 percent are converting to paid subscriptions, at least according to Beats sources.
It’s unclear how many of those people are paying directly, and how many are subscribing through AT&T Family Plans (at $14.99 for up to 5 users). Either way, Bloomberg cited a study showing that Beats will become profitable after reaching 5 million paying subscribers. Moving forward, Beats is planning an aggressive campaign involving bundling through mega-partners like Target, AT&T, and others.
The news comes as Spotify appears to be slowing down, possibly in dramatic fashion. In early 2013, Spotify proudly announced its 6th millionth paying subscriber. Spotify has yet to announce another milestone.
Written while listening to Frozen (Original Motion Picture Soundtrack) on Rdio.