Apple's iTunes became the dominant music download store, and with the introduction of its new music service, analysts say it could do the same for music subscriptions.
Tuesday, the company launches Apple Music. After a free, three-month trial period, members will pay $9.99 a month, or $14.99 per family, for access to an on-demand streaming music service with more than 30 million songs; a 24-hour radio station boasting celebrity DJs such as Zane Lowe; and a new social service allowing artists to connect with their fans.
Eddy Cue, Apple's senior vice president of Internet software and services, refers to the new service as "revolutionary."
"We love music, and the new Apple Music service puts an incredible experience at every fan's fingertips," Cue said in a statement.
Apple is introducing a streaming service because that's where the growth is in this market. In 2014, according to the Recording Industry Association of America, revenue from streaming music services jumped 29 percent to $1.87 billion. Meanwhile, sales from digital downloads fell 8.7 percent to $2.58 billion.
The launch of Apple Music came with its own set of headline-making dust-ups. Pop superstar Taylor Swift publicly objected to Apple's decision not to pay artist royalties during the free trial period. The company then changed its policy.
How should investors think about this service?
Apple Music will not have a material financial impact for the company, at least in the near term. Piper Jaffray's Gene Munster notes that, even if Apple increases its subscriber base to match Spotify's, it would add less than 1 percent to Apple's revenue in 2016.
But Munster notes that the service is important for broader strategic reasons. Specifically, he points out that Apple Music, if successful, could be one more way to motivate consumers to buy iPhones, which still account for more than 55 percent of the company's total sales.
"Apple Music matters because music broadly is fundamental to the mobile phone experience," Munster said. "By having a compelling music experience, the hope is Apple will sell more iPhones."