“Siri, play Beethoven’s 5th Symphony.” Apple (AAPL) has announced its acquisition of Primephonic — a classical music streaming service. From September 7, Primephonic will cease to exist and will be integrated into Apple Music’s regular streaming service. In 2022, Apple will launch its very own classical music app with some of Primephonic’s best features, such as browsing and searching by composer and by repertoire. To avoid losing any customers, Primephonic has offered its subscribers a six months free membership with Apple Music’s streaming service.
This is not the first time that Apple buys companies related to the music sector — in fact, some of its most significant acquisitions have been made in this industry. Back in 2014, Apple bought Beats for $3b, while in 2017, it bought Shazam for $400m. The latest acquisition was an artist discovery service called Platoon in 2018 for an undisclosed amount. Just like with Platoon, Apple has not disclosed how much it paid for Primephonic.
why it matters
Most of Primephonic's users are aged 55 plus, which prompts us to assume that with this move, Apple is attempting to attract an audience group that is not yet captured by competitors such as Spotify (SPOT).