Spotify growing even faster thanks to launch of Apple Music, VP says

AppleInsider

Spotify has actually seen its business accelerate since Apple Music was launched in June 2015, a vice president with the company said on Monday, crediting the extra attention drawn to streaming services.

"Since Apple Music started we've been growing quicker and adding more users than before," Jonathan Forster explained in an interview with Reuters. Spotify now has almost 100 million subscribers, about 30 million of which are paid Premium subscribers.

Apple Music has approximately 13 million paid customers, but no free tier outside of three-month trials and Beats 1 radio. The service is however available in over 100 countries, whereas Spotify is in closer to 60.

"It would be terrible if we were just taking each other's users or to learn there was just a ceiling of 100 million users -- I don't think that is the case," Forster added, while also suggesting that music streaming is a "hard business" that will probably limit the number of participants.

Earlier today Spotify revealed plans to introduce original video programming on top of the third-party video already available to mobile users. Apple Music's forays into video have been comparatively limited so far.

The service is, however, expected to get a revamp at WWDC, primarily through a new interface, but also possibly with expanded Beats 1 radio. Apple may additionally "demote" the service's Connect feature once iOS 10 is launched later this year.

rogifan_new

I don't get what one has to do with the other. I have a hard time believing there were all these people holding out on signing up for a streaming music service because Apple wasn't in the game yet. But I think this signals that Music isn't compelling enough yet to get people to ditch existing options.

lkrupp

rogifan_new said:

I don't get what one has to do with the other. I have a hard time believing there were all these people holding out on signing up for a streaming music service because Apple wasn't in the game yet. But I think this signals that Music isn't compelling enough yet to get people to ditch existing options.

Blathering nonsense. Apple Music is more than compelling over the likes of Spotify. It’s just become more fashionable to bash Apple services while claiming to be a fan of the platform.

foggyhill

rogifan_new said:

I don't get what one has to do with the other. I have a hard time believing there were all these people holding out on signing up for a streaming music service because Apple wasn't in the game yet. But I think this signals that Music isn't compelling enough yet to get people to ditch existing options.

Apple's heavy marketing expanded the market, just like they expanded the smart phone market when they came in (and Android profited from places Apple would not go).
Spotify's getting a lot from that because they were already a known entitity in this space and thus were a more mature solution.
Contrary to Android though, in this area, Apple can, and will eventually compete in all areas Spotify is or will be. They better enjoy the collateral growth they're getting now because it will get rough in the next few years as Google and Apple step into their spot.

ny1822

"30 million paid Premium subs"....wonder how many of those are paying $1 for 3 months...
http://www.hypebot.com/hypebot/2015/05/1-for-3-months-of-spotify-premium-is-back-but-with-no-ads-how-are-artists-label-getting-paid.html

djsherly

lkrupp said:

rogifan_new said:

I don't get what one has to do with the other. I have a hard time believing there were all these people holding out on signing up for a streaming music service because Apple wasn't in the game yet. But I think this signals that Music isn't compelling enough yet to get people to ditch existing options.

Blathering nonsense. Apple Music is more than compelling over the likes of Spotify. It’s just become more fashionable to bash Apple services while claiming to be a fan of the platform.

I've got Apple Music for free with my phone plan and I still pay for and use Spotify in preference because it does one thing well. Stream music. 

Apple Music is like its keynote. A bit of a mess really. 

reiszrie

lkrupp said:

rogifan_new said:

I don't get what one has to do with the other. I have a hard time believing there were all these people holding out on signing up for a streaming music service because Apple wasn't in the game yet. But I think this signals that Music isn't compelling enough yet to get people to ditch existing options.

Blathering nonsense. Apple Music is more than compelling over the likes of Spotify. It’s just become more fashionable to bash Apple services while claiming to be a fan of the platform.

I personally think that Apple Music's implementation was shoddy and needs major work, as of now, Apple Music's integration leaves much to be desired.

edited May 2016

ivlad

I feel like consumers win in any situation.

sirlance99

lkrupp said:

rogifan_new said:

I don't get what one has to do with the other. I have a hard time believing there were all these people holding out on signing up for a streaming music service because Apple wasn't in the game yet. But I think this signals that Music isn't compelling enough yet to get people to ditch existing options.

Blathering nonsense. Apple Music is more than compelling over the likes of Spotify. It’s just become more fashionable to bash Apple services while claiming to be a fan of the platform.

More compelling over Spotify how? Not everyone has to or really like Apple Music despite being from Apple. Others simply do prefer Spotify or others. I really can't see anything that Apple Music provides better/more than others.

I tried Apple Music and found nothing it did more or better for me than Google Play Music which I get for only $7.99 per month and no ads on any YouTube videos. 

rogifan_new

lkrupp said:

rogifan_new said:

I don't get what one has to do with the other. I have a hard time believing there were all these people holding out on signing up for a streaming music service because Apple wasn't in the game yet. But I think this signals that Music isn't compelling enough yet to get people to ditch existing options.

Blathering nonsense. Apple Music is more than compelling over the likes of Spotify. It’s just become more fashionable to bash Apple services while claiming to be a fan of the platform.

So that's why Apple is announcing in Apple Music redesign at WWDC?

cali

sirlance99 said:

lkrupp said:

Blathering nonsense. Apple Music is more than compelling over the likes of Spotify. It’s just become more fashionable to bash Apple services while claiming to be a fan of the platform.

More compelling over Spotify how? Not everyone has to or really like Apple Music despite being from Apple. Others simply do prefer Spotify or others. I really can't see anything that Apple Music provides better/more than others.

I tried Apple Music and found nothing it did more or better for me than Google Play Music which I get for only $7.99 per month and no ads on any YouTube videos. 

And what does Play Music have that Apple Music doesn't?

this seems to be a problem nowadays. Everything is the same.

applefanboi1984

I realize it's the de facto thing to bag on Apple Music, it had a rough start but do people really think Spotify is any easier to navigate? Its UI looks like the devil shat through a sieve to me.

lkrupp

AppleFanboi1984 said:

I realize it's the de facto thing to bag on Apple Music, it had a rough start but do people really think Spotify is any easier to navigate? Its UI looks like the devil shat through a sieve to me.

No they don’t but it’s now sort of required protocol to prefer everything over anything Apple does. If you actually like something Apple does you’re not cool and part of the “in” crowd. 

sflocal

I'm a happy Apple Music user and I agree that it's a mess the way it's being handled.  They need to really make it as easy to use as is an iPhone.  To date, it just appears to be a hodgepodge of mismatched modules, confusing UI, and in all, something that seems they did not put much time into the user experience.

Hopefully, like most things Apple, v1.0 always has it's hiccups... looking forward to v2.0

redstater

foggyhill said:

rogifan_new said:

I don't get what one has to do with the other. I have a hard time believing there were all these people holding out on signing up for a streaming music service because Apple wasn't in the game yet. But I think this signals that Music isn't compelling enough yet to get people to ditch existing options.

Apple's heavy marketing expanded the market, just like they expanded the smart phone market when they came in (and Android profited from places Apple would not go).
Spotify's getting a lot from that because they were already a known entitity in this space and thus were a more mature solution.
Contrary to Android though, in this area, Apple can, and will eventually compete in all areas Spotify is or will be. They better enjoy the collateral growth they're getting now because it will get rough in the next few years as Google and Apple step into their spot.

FYI, Google Play Music has been around since 2011 and is available in 58 countries. And Android sells plenty - including expensive devices - in areas that Apple does plenty of business i.e. South Korea, Japan, North America and Europe, where plenty of LG G and Galaxy S type devices sell annually. Spotify's big problem isn't competition from Apple and Google (and Amazon Music). Their problem is that music streaming will never be profitable by itself. It can only make money if it is able to piggyback on an existing infrastructure that is primarily used to generate revenue for something else, such as Amazon's shopping, Google's advertising or of course Apple's hardware.

esquirecats

At this stage they're pretty similar services. It's clear that Apple Music has a better position at obtaining one-week exclusive launches on most new popular albums, likely due to the continuing popularity of iTS. I have seen this annoy a few Spotify using friends already.

However all this criss-cross-comparisons between Spotify and Apple Music are moot, it's clear that both services are going to diversify in their offerings soon. Spotify has already vocalised theirs with independent video content, and Apple Music likely forms a single pillar in a far wider media strategy. I wouldn't be surprised to see a universal Apple media service in the next 3 years which combines all you can eat Music, Television, Film and Apple's own independent episodic productions. Apple don't wait for the market to grow, they go out and get it, their history in media and very close partnership with Disney put them in a unique position to seal up such a deal first. (A process that reminds me of TV episodes on iPod.)

As for Spotify, they are still walking a fine line of being able to support a free tier. It's a loss leader and at this stage I imagine the only reason they keep it is to tout the high membership figures, we're all aware that free to pay conversion is woefully low. This is a side effect of Spotify training their user base to believe music is not worth paying for. A mistake other services were keen to avoid, and likely one Spotify will rue when they introduce their own independent episodic content.

foggyhill

redstater said:

foggyhill said:

Apple's heavy marketing expanded the market, just like they expanded the smart phone market when they came in (and Android profited from places Apple would not go).
Spotify's getting a lot from that because they were already a known entitity in this space and thus were a more mature solution.
Contrary to Android though, in this area, Apple can, and will eventually compete in all areas Spotify is or will be. They better enjoy the collateral growth they're getting now because it will get rough in the next few years as Google and Apple step into their spot.

FYI, Google Play Music has been around since 2011 and is available in 58 countries. And Android sells plenty - including expensive devices - in areas that Apple does plenty of business i.e. South Korea, Japan, North America and Europe, where plenty of LG G and Galaxy S type devices sell annually. Spotify's big problem isn't competition from Apple and Google (and Amazon Music). Their problem is that music streaming will never be profitable by itself. It can only make money if it is able to piggyback on an existing infrastructure that is primarily used to generate revenue for something else, such as Amazon's shopping, Google's advertising or of course Apple's hardware.

It is profitable by itself if it drives people that can see ads; you're comment is like saying search isn't profitable by itself.. It's all the same model. Everything is the same model.
Apple has more than 50% of the high end, at the very high end its probably more than 75%.
The problem with ads is they don't generate enough money really to pay for music streaming (as Spotify has realized); artists are now looking for real money from streaming and with the added competition for their resources, streaming them gets progressively more expensive.

Subsidizing it from other survives profits only work when the number of streamers is relatively low (which is still the case), not when it reaches hundreds of millions of people streaming all day long. The payout then for Google would be way too high.

edited May 2016

kevin kee

I think I am quite a heavy Apple Music user. Yes, the UI can be confusing or simple, very much depending on the user. If you want to make it complicated, it will be, for me I prefer simplicity. See, when I use the Music app, I only go to search button on the top right corner, type in the song/artist/album name. That's it. I could use playlist, but why should I? Similarly, I could use many of other features, but again, why? I believe Spotify or Google Play offer similar features, but I stick with Apple Music because first It just feel like purist since I am using iPhone and that it has every songs that I want to listen.

cropr

cali said:

sirlance99 said:

More compelling over Spotify how? Not everyone has to or really like Apple Music despite being from Apple. Others simply do prefer Spotify or others. I really can't see anything that Apple Music provides better/more than others.

I tried Apple Music and found nothing it did more or better for me than Google Play Music which I get for only $7.99 per month and no ads on any YouTube videos. 

And what does Play Music have that Apple Music doesn't?

A much better designed app

kevin kee

cropr said:

cali said:

And what does Play Music have that Apple Music doesn't?

A much better designed app

I beg to differ. I think Play Music design is crap. But my point is, everyone has different taste. Design is subjective.

badmonk

I am an Apple Music user and I love it.  The UI was rough out of the gate but it is getting better and I getting better at using it.  It some ways it is like Apple Maps...quietly improving over time.

I have looked over the shoulders at my friends use of Spotify.  The UI seems simpler, more straight forward.

But the one thing I really like about Apple Music is that it has more depth in offerings with the years of artist iTunes exclusives.  Apple Music is better at the end of the day from my perspective.