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Microsoft Giving Up on an Industry That’s Generating Billions for Apple
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Redmond is officially killing off Groove Music
Oct 3, 2017 12:57 GMT  ·  By Bogdan Popa ·  Share:      
Microsoft has announced that it’s giving up on its own music streaming service called Groove Music, with all subscriptions to be transferred to Spotify in the coming weeks.

With this decision, Groove basically becomes nothing more than just a music player available on Windows devices, despite the effort that the company has put into improving the service in the last months. Additionally, Microsoft will also remove the ability to purchase music from the Windows Store by the end of the year.

The decision comes as a big surprise for users who were committed to Groove Music, especially because Microsoft has pushed hard for the adoption of its service as part of an effort to convert the Windows Store to a unique destination for various types of content. Music has been an essential part of the Windows Store in the last 12 months, and Groove Music itself received several major updates to enhance music streaming on Windows devices.

Apple making billions off music streaming
By giving up on music streaming, Microsoft is actually abandoning a business that’s making billions for others, and the first name that comes to one’s mind is Apple.

Even though Apple Music has never been a top rival to leading services like Spotify, for instance, it’s still making billions for the parent company, helping boost the profit of the services division with a continuously growing number of subscribers.

Apple does not provide specifics on Apple Music, but earlier this year it was estimated that the service had 27 million paid subscribers. With a $10 per month subscription, these customers would generate up to $3.2 billion every year for Apple.

Groove Music, however, has never become as powerful as Apple Music, despite Microsoft aiming for the sky and hoping to overtake its Cupertino rivals. Groove has mostly been a second-tier service, appealing mostly to those who were fully committed to Windows.

Most likely, the lack of a powerful mobile platform affected the success of Groove Music, as Microsoft has given up on smartphones to concentrate instead on desktops and tablets. Music streaming, however, is particularly popular among mobile users, and this is one of the reasons Apple Music has been rather successful since its launch.

Ironically, moving customers to Spotify isn’t the most convenient solution for customers committed to Microsoft services, mostly because the dedicated app for Windows phones lacks the majority of the features that are available on rival platforms.
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