30% of iPhone Users Leaning Toward Using iTunes Match

RBC Capital Markets analyst Mike Abramsky today published a report sharing the results of a new survey of iPhone users, unsurprisingly revealing that 76% of surveyed users are planning to take advantage of Apple's free iCloud services. More significantly, the survey offers the first look at the popularity of iTunes Match, with 30% of respondents indicating that they are somewhat likely or very likely to utilize the $24.99/year service.

Extrapolating the survey results across Apple's iOS ecosystem, RBC notes that Apple could see 150 million users on its free iCloud services with 60 million of those also participating in iTunes Match, a figure that would see Apple pulling in an extra $1.5 billion per year in gross revenues. With Apple reportedly keeping 30% of iTunes Match revenue with the rest being passed on to music labels and publishers, Apple would see about $450 million in revenues from the program.


Those figures are likely on the optimistic side, however, as only 10% of surveyed iPhone users registered as "very likely" to sign up for iTunes Match, with the other 20% pegging their interest at a lower "somewhat likely" level. Approximately 15% offered no opinion on whether or not they would use the service.

The survey also finds that 73% of surveyed users are somewhat likely or very likely to use Apple's new iMessage service in iOS 5. Together, iCloud and iMessage are seen to "enhance loyalty and stickiness" for Apple's customers, potentially encouraging iPod touch users to stick with the iOS platform rather than defecting to Android or another platform when it comes time to purchase a smartphone.

RBC's data appears to come from a subset of approximately 450 iPhone users within a larger survey containing nearly 1,500 respondents.

Top Rated Comments

(View all)
Avatar
119 months ago
Count me in the 70% who does not plan to use it.
Score: 10 Votes (Like | Disagree)
Avatar
119 months ago
With iTunes match, do you actually get the replacement song files downloaded to your computer, or do you just get the matches "in the cloud?"

In other words, could I subscribe to iTunes match for one year and get all of my ripped songs from iTunes and then drop it a year later and continue to have my songs matched in the cloud since I now have "official" iTunes files on my computer?
Score: 4 Votes (Like | Disagree)
Avatar
119 months ago
I think its a little bit too early for anyone to make a definitive decision as to whether or not they will sign up for the iTunes Match service.

The $24.99/year service does look appealing to me, but the details surrounding the terms of service are still very scarce. I think a lot of the people who voted "Unlikely" either don't know much about iTunes Match or want to wait to see the details.
Score: 3 Votes (Like | Disagree)
Avatar
119 months ago
Since I don't use iTunes to buy my music but prefer to get CDs I will not be using this feature. Why should I pay twice? And "the cloud" sucks anyway.
Score: 2 Votes (Like | Disagree)
Avatar
119 months ago

With iTunes match, do you actually get the replacement song files downloaded to your computer, or do you just get the matches "in the cloud?"

In other words, could I subscribe to iTunes match for one year and get all of my ripped songs from iTunes and then drop it a year later and continue to have my songs matched in the cloud since I now have "official" iTunes files on my computer?

I *believe* that Apple is going to give you the actual file to store locally. However, whereas a normal iTunes purchase would be available via iCloud sync to all devices, the iTunes-matched music that you never actually purchased through iTunes would only be available if you have your current $25 per year subscription. Apple does have a record of every song you actually purchased from them through iTunes.

So the scenario would go like this....

1) Rip 100 CDs

2) Get iTunes Match and get iTunes digital files for everything ripped

3) Use iCloud to effortlessly move music between your devices whether bought on iTunes or matched by iTunes

4) iTunes Match subscription expires

5) All your iTunes Match music that has not been purchased can no longer be synced over iCloud, but you still have all the digital files so that you can sync them manually

Your alternative is to buy the music directly on iTunes to avoid the recurring fees. Basically, Apple is selling you the synching service and giving the music industry a cut. The music industry likes it because it creates a recurring revenue model for them on music they previously got nothing for, and if you don't like the recurring revenue, but like the iCloud service then maybe you will repurchase (or first-time purchase) the music that you ripped.

I imagine many folks actually purchased CDs as opposed to downloading bootlegged copies. But iTunes Match will treat those the same way.
Score: 2 Votes (Like | Disagree)
Avatar
119 months ago

I think you're kind of illustrating my point ... since when was iTunes Match a streaming service? Not sure if that was covered in detail during the keynote.

I think with the $24.99/year, you are basically paying for convenience rather than unlimited storage. If I download an album on my computer, I'll be able to access that album with my phone without any uploading. That, and you basically get the 256kbps version of the song, which alone I would gladly pay $25 for.


That's not how it works. You can rip a CD into iTunes on your computer. Then, with iTunes Match, that album is scanned automatically and matched in the cloud as part of your library. At that point, you then have the option to download that album onto any other device that shares the same iTunes account (another Mac or PC, iPad, iPhone, iPod Touch, etc.). If your device is set to automatically download new content, then the ripped album will show up automatically.
Score: 2 Votes (Like | Disagree)

Top Stories

Apple Confirms This Year's iPhone 12 Models Will Be a Little Bit Late

Thursday July 30, 2020 2:34 pm PDT by
During today's earnings call covering the third fiscal quarter of 2020 (second calendar quarter) Apple CFO Luca Maestri confirmed that Apple is expecting to release this year's iPhones later than usual. Maestri said that Apple last year started selling iPhones in late September, but this year, Apple projects supply will be "available a few weeks later." Multiple rumors have suggested that ...

Apple-Acquired Dark Sky Officially Shuts Down Android App

Saturday August 1, 2020 3:43 pm PDT by
Apple in March purchased weather app Dark Sky, and at that time, Dark Sky's developers said that the app's Android version would be discontinued on July 1, 2020. However, instead of shuttering the app on that date, the app's developers announced that the discontinuation would be delayed for another month. Now that it's August, Android users are no longer able to access the app, and...

Apple Watch Series 6 to Feature Blood Oxygen Monitoring Sensor

Friday July 31, 2020 1:56 am PDT by
The Apple Watch Series 6 will add blood oxygen monitoring to its features list when it's launched later this year, according to a new report from DigiTimes. Apple Watch 6 will feature biosensors that can monitor sleeping conditions, detect blood oxygen and measure pulse rates, heartbeats and atrial fibrillation, and will also incorporate MEMS-based accelerometer and gyroscope, all allowing the ...

Just How Small Will the 5.4-Inch iPhone 12 Screen Be? Try It Out for Yourself

Tuesday July 28, 2020 12:57 pm PDT by
As rumors of the iPhone 12 have continued to build over the past few months, the one model that has the most excitement around it is the smallest 5.4" model. The iPhone 12 is believed to be coming in 5.4", 6.7", and 6.1" sizes. Dummy models have shown how much smaller the 5.4" is compared to the rest of the iPhone lineup. The upcoming 5.4" iPhone falls in-between the size of the original...

Top Stories: Try the 5.4-Inch iPhone 12 Display Size, Blockbuster Earnings, Tim Cook at Antitrust Hearing

Saturday August 1, 2020 6:00 am PDT by
Another busy week of Apple news and rumors has wrapped up, with a lot of focus on Tim Cook's appearance at a Congressional antitrust hearing and a blockbuster earnings report. Subscribe to the MacRumors YouTube channel for more videos. We continued to hear rumors about the upcoming iPhone 12 lineup, including a rare admission from Apple that the lineup will launch "a few weeks later" than...

Emails Reveal Why Steve Jobs and Phil Schiller Blocked In-App Purchase of Kindle Books

Friday July 31, 2020 6:25 am PDT by
Internal Apple emails, made public by the House Judiciary Committee's antitrust inquiry, have revealed information about why Apple blocked in-app purchases of Kindle books on iOS devices, reports The Verge. Two sets of emails between Steve Jobs, Phil Schiller, Eddy Cue, and various other senior Apple executives, disclose the exact thinking behind how Apple approached Kindle on iOS. The...

Battery Likely for Upcoming Apple Watch Series 6 Filed in Certification Listings

Saturday August 1, 2020 5:46 am PDT by
A battery likely for the upcoming Apple Watch Series 6 has been filed at the Korea Testing and Research Institute and discovered by a Twitter user @yabhishekhd. Certification for a 1.17Wh battery with a capacity of 303.8mAh was issued on June 23 by the KTR, a Korean regulatory body that approves and tests new hardware ahead of public sale. The battery seems to be destined for a future...

Apple Marks Return of NHL With New 'Hockey Tape' Ad Shot on iPhone 11 Pro

Saturday August 1, 2020 2:33 am PDT by
Apple today marked the return of NHL hockey with a new "Shot on iPhone" ad on its YouTube channel in Canada. Titled "Hockey Tape," the 30-second video features Vegas Golden Knights players Marc-André Fleury and Mark Stone having some on-ice fun with the iPhone 11 Pro, which they attach to the boards, a hockey stick, and a skate with hockey tape. "See the game like never before with Ultra ...

Apple Launches New Gift Card for 'Everything Apple'

Friday July 31, 2020 3:45 am PDT by
Apple has introduced a new single gift card in the U.S. for all things Apple. First spotted by iCulture, the card can be used at the App Store and other online services, but you can also use it to buy products and accessories in the Apple Store. Previously, there were two separate Apple gift cards available: iTunes cards, which can be used for App Store, iTunes Store, and iCloud storage...

Leaker Jon Prosser Claims iPhone 12 and New iPads Will Launch in October

Wednesday July 29, 2020 4:15 pm PDT by
Leaker Jon Prosser, who has a somewhat mixed track record when it comes to predicting Apple's plans, today said that new iPhone 12 models and new iPads will launch in October. Multiple rumors have suggested that some or all of the iPhone 12 models coming this year will see a later than normal launch. Apple typically unveils and releases new iPhones in the month of September, but problems...