Remember when Apple bought LaLa and the world went upside down over the possibility of a streaming version of iTunes? Well, it turns out all that hype is well grounded, people really do want their iTunes to be in the cloud.
New data has been released today that measures and captures potential user interest in free and paid iTunes streaming. It should be noted that most iTunes customers are not accustomed to such an offering, and while other companies have been experimenting in the space, it has been to little avail.
NPD did polling and found that 25% of iTunes users would be interested in an ‘anywhere’ streaming option for music that they already have. That works out to around 13 to 15 million people in the US. These people are more or less saying ‘yes’ to the question of whether they would like to be able to stream music they already own to other devices, a no brainer.
However, if you ask the same group how many would be willing to pay for a streaming services, say $10 a month for an unlimited streaming package, some 7 to 8 million people seem to be potential customers. That works out to $80 million a month in revenue, or about one billion dollars a year out of the gate.
The market potential here is gigantic, will Apple capitalize on it?