When Apple unveiled its new streaming service, candidly named #Apple #Music, Spotify's reaction was completely unimpressed. CEO Daniel Ek tweeted a very bored "Ah ok," which he promptly deleted, and not much has been said since Monday, the day of the unveiling.

Analysts and music fans alike have been saying that there is nothing very revolutionary in this service, which is comprised of a music streaming platform, an always-on radio station called Beats 1 and a place where artists can upload content and contact with their fans, Connect. Other than bearing the Apple brand, which goes a long way into attracting consumers, Apple Music is one more music streaming service, on a market that already has pretty good offerings.

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What it doesn't have is a lucrative one. Spotify, the most successful of all the services, not only is still losing money but almost tripled its losses in 2014. The industry is still trying to figure out how to reach a fair balance between paying artists and rights holders, satisfying labels, providing a high-tech, reliable service which is close to free and still make money. Zero companies are making money in this sector, which is why not even Spotify's success is a good assurance of the future. The Swedish company's model is to attract consumers with a free service and then slowly migrating them to the paid platform, which costs $9,99 - as will Apple Music.

The difference is that Apple Music does not have a free model. Users either get everything or nothing; it goes hand in hand with the notion that the free model Spotify offers is too good and actually erodes the value of music, which artists like Taylor Swift and competitors like Rdio have publicly complained about.

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Spotify has 60 million users worldwide, 15 million pay for the premium model. Altogether, there are around 30 million paying subscribers in all of the services – it is clearly not enough to sustain the industry, and advertising can't pay for it all. 

So how can Apple succeed, if there's a free streaming service already in place as the incumbent? Because it's Apple's service, connected to iTunes – which has around 500 million accounts on its database – and it will be free for the first three months. The real key, however, might be the family package: costing only $14,99 for six people, it is the most generous group pack available, and it makes a premium service cost only $2,5 per person. 

Apple Music will be launching on June 30th only for iOS users and will be free for the first three months. It will be available for Android "in the fall," CEO Tim Cook said. Could it change the way streaming is offered to consumers? It might.  #Smartphone