​The music industry as we know it didn’t exist fifteen years ago. Back then if you wanted a song (legally), you’d have to buy the whole album. But then Apple (AAPL) launched iTunes and the iPod in 2001, and users could have “1,000 songs in [their] pocket.” They could buy songs individually rather than being forced to buy the whole album.

The music industry changed dramatically because of the innovation Apple brought to the table. Popular applications like Pandora and Spotify likely wouldn’t exist if it weren’t for Apple.

So now Apple is attempting to disrupt the music industry again. Many may think that Apple is too late to the game when it comes to the latest paradigm shift, but with its financial resources and current user base, it’s likely to be a boon for the company’s stock and future.

Introducing Apple Music

Anyone could have seen it coming when Apple acquired Beats Electronics in May 2014. Apple Music is a subscription-only service costing $9.99 per month for a single user or $14.99 a month for a family account for up to six people.

Unlike its competitors, Apple Music is very much sold on the human element of music. Instead of using algorithms to create playlists, executive Jimmy Lovine touts Apple Music as “a revolutionary music service curated by leading music experts” — in other words, actual people. Music fans can also follow their favorite artists, who can share things with their fans such as music clips, videos from the studio, etc.

Another feature included in the subscription is Beats 1, a 24/7 live radio broadcast from Los Angeles, New York and London. Run by a group of DJs and headed by world-famous DJ Zane Lowe, Beats 1 is likely to be a hit for music fans all over the world.

Strengths

The biggest reason why Apple Music will succeed is the sheer girth of Apple’s fan base. Hundreds of millions of people carry iPhones, and Apple has over 800 million credit cards on file. The potential here is huge. Compare that with Spotify’s 60 million active users and 15 million paying customers, or Pandora’s (P) 79.2 active users during Q1 2015.

The company is also doing something it’s never done before, something that will surely improve its chances for success: it’s releasing its first-ever Android app. That’s right. Starting this fall, Apple Music will be the first native Apple app to make its way onto another operating system. While Android users may not get the family plan (it requires iCloud), it will certainly give Apple the chance it needs to crush competitors.

Risks

Unlike competitors Spotify and Pandora, Apple Music doesn’t have a free, ad-supported tier. Many may see this as a barrier for new customers who may want to try the service before paying the subscription. However, the company is offering a three-month trial period, which it hopes will be enough for a hook, line and sinker.

It’s too soon to tell, though, if Apple Music will be as good as Spotify’s paid service, though. If it isn’t, it’s likely that users won’t want to pay for an inferior streaming service.

Like we mentioned before, Apple may also be too late to the party. It’s odd to say that, but it’s true. After Apple launched iTunes, it rested on its laurels far too long and music streaming took off without it. It made an attempt to compete with free services with its iTunes Radio, which prompted listeners to purchase the songs they liked through the iTunes Store, but that wasn’t enough.

Conclusion

Apple can succeed with Apple Music, but it has to do what it was able to do with the iPod. Make streaming better. The iPod, for example, wasn’t the first mp3 player. But it improved usability in a way that made it special. Apple already has an advantage over Spotify and Pandora because of its large footprint, but it can’t expect to succeed just because it’s Apple. It needs to give current Spotify and Pandora subscribers a reason to switch. As of right now, there might not be a big enough of a distinction between the services to be convincing. But over time, it’s likely that Apple will find a way to make it happen.