Apple Music eclipses Spotify in paid US subscribers

Posted:
in iPod + iTunes + AppleTV edited April 5
After a false start six months ago, Apple Music has truly surpassed Spotify in terms of paid U.S. subscribers -- if with a long way to go globally.

Heilung


Apple's service hit 28 million U.S. subscribers in February versus Spotify Premium's 26 million, Wall Street Journal sources said on Friday. Publicly neither company reveals regional subscription data, and they often wait for major milestones to show broader numbers.

Apple Music's monthly U.S. growth rate is about 2.6 to 3 percent against Spotify Premium's 1.5 to 2 percent, the sources added. In fact the service is also said to be growing at 2.4 to 2.8 percent globally, topping Spotify Premium's 2 to 2.3 percent, and closing gaps in some other non-U.S. markets.

It's unlikely however that Apple will beat Spotify's combined paid and free ad-based users anytime soon. Spotify reported 207 million active listeners worldwide in December, of which 96 million were Premium customers. Apple Music has somewhere north of 50 million customers in total, since it has no free option beyond a three-month trial.

Counting free listeners, Spotify is still ahead in the U.S., the sources said.

Apple Music was originally predicted to lap Spotify Premium in the U.S. last year, but was kept at bay by new Spotify strategies including bundles with Hulu video streaming. In fact Hulu is now free to anyone paying for an individual Premium subscription, as long as they opt in by June 10.

Apple and Spotify are currently squaring off in front of the European Commission over competition issues. The latter accuses Apple of constructing artificial barriers, for instance claiming 15 to 30 percent of revenue from all third-party subscriptions via the App Store, and refusing to offer those parties any OS-level integration. That's in contrast with platforms like Amazon Alexa, where people can set one of multiple music services as their default, Apple Music among them.
lostkiwi
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Comments

  • Reply 1 of 41
    Cesar Battistini MazieroCesar Battistini Maziero Posts: 167unconfirmed, member
    Its just a matter of time...


    MacProwatto_cobra
  • Reply 2 of 41
    jmey267jmey267 Posts: 53member
    But wallstreet says Apple's music service is a bust compared to spotify, who needs facts anymore.
    cornchipHenryDJPshahhet2lostkiwiwatto_cobrajony0
  • Reply 3 of 41
    tylersdadtylersdad Posts: 205member
    Do these paid subscribers include people like me who get Apple Music for free through Verizon?
  • Reply 4 of 41
    Roger_FingasRoger_Fingas Posts: 148member, editor
    .
    tylersdad said:
    Do these paid subscribers include people like me who get Apple Music for free through Verizon?
    That's a valid question - the sources didn't say. I would assume so, since you're paying indirectly.
    cornchiplostkiwiwatto_cobra
  • Reply 5 of 41
    badmonkbadmonk Posts: 838member
    I wonder when people will realize that Apple’s Beat acquisition was perhaps the best multibillion tech acquisition ever—a profitable hardware company plus the seeds of a great service.

    As a vinyl (and CD) collector, Apple Music plus HomePod in the kitchen has been a great investment .  I still buy vinyl but AM allows me to screen many new artists and make smarter purchase decisions.  And it puts out so much sound in a large space and Siri is good enough for me to set timers and control the mood with music and lights while my hands are messy.

    Still love my turntable and stereo but most of my music listening is in this space and with the AirPods of course...again they sound much better than they should.


    StrangeDaysMacProlostkiwiwatto_cobra
  • Reply 6 of 41
    ah, ah, ah, Spotify said Apple through sand in their eyes. 
    watto_cobra
  • Reply 7 of 41
    matrix077matrix077 Posts: 793member
    Now THAT is very surprising. 

    Now I understand why they sue Apple in EU. 
    lostkiwi
  • Reply 8 of 41
    >Apple Music was originally predicted to lap Spotify Premium in the U.S. last year...

    Is this the "false start" you are referring to, because that was a techie boy prediction, not something that came from Apple. And that means there was no false start.  
    randominternetpersonNotsofastwatto_cobra
  • Reply 9 of 41
    And in the same article, they admit that Spotify still has more users, both paid and free accounts combined in the US, compared to Apple Music.  Globally, almost 100 million paid Spotify users compared to Apple's 50M globally.  So the bottomline is that more people still use Spotify in the US and world-wide, and globally, more people pay for Spotify.  Not interested in renting music.
    chemengin
  • Reply 10 of 41
    rogifan_newrogifan_new Posts: 4,213member
    Power of defaults is strong.
    muthuk_vanalingamMacPro
  • Reply 11 of 41
    thttht Posts: 3,322member
    Always find this type of metric incredible and it shows Apple’s brand power in the USA. Apple just started branching out Apple Music to Amazon smart speakers, so the past couple of years, the service has only been available on Apple devices and Android cell phones. No TV dongles, no other third party streamers, no web service.

    Wonder what the uptake for Apple Music is on Android? Virtually zero information on how well it is doing on Android, but everyone thinks it doesn’t do well, right? Maybe it does just as well as Spotify on Android?

    Still, it has some big handicaps, yet Apple is able to capture a quarter to a third, maybe half, of the paying subscribers in the US? That’s some huge brand power, or they captured a supermajority of the buying market.
    edited April 5 watto_cobra
  • Reply 12 of 41
    HenryDJPHenryDJP Posts: 75member
    tylersdad said:
    Do these paid subscribers include people like me who get Apple Music for free through Verizon?
    I would say perhaps not. Firstly not everyone has Verizon  and not everyone has an unlimited data plan which is required to get the Apple Music promo that only last 6 months anyway. 
    watto_cobra
  • Reply 13 of 41
    genovellegenovelle Posts: 982member
    After a false start six months ago, Apple Music has truly surpassed Spotify in terms of paid U.S. subscribers -- if with a long way to go globally.

    Heilung


    Apple's service hit 28 million U.S. subscribers in February versus Spotify Premium's 26 million, Wall Street Journal sources said on Friday. Publicly neither company reveals regional subscription data, and they often wait for major milestones to show broader numbers.

    Apple Music's monthly U.S. growth rate is about 2.6 to 3 percent against Spotify Premium's 1.5 to 2 percent, the sources added. In fact the service is also said to be growing at 2.4 to 2.8 percent globally, topping Spotify Premium's 2 to 2.3 percent, and closing gaps in some other non-U.S. markets.

    It's unlikely however that Apple will beat Spotify's combined paid and free ad-based users anytime soon. Spotify reported 207 million active listeners worldwide in December, of which 96 million were Premium customers. Apple Music has somewhere north of 50 million customers in total, since it has no free option beyond a three-month trial.

    Counting free listeners, Spotify is still ahead in the U.S., the sources said.

    Apple Music was originally predicted to lap Spotify Premium in the U.S. last year, but was kept at bay by new Spotify strategies including bundles with Hulu video streaming. In fact Hulu is now free to anyone paying for an individual Premium subscription, as long as they opt in by June 10.

    Apple and Spotify are currently squaring off in front of the European Commission over competition issues. The latter accuses Apple of constructing artificial barriers, for instance claiming 15 to 30 percent of revenue from all third-party subscriptions via the App Store, and refusing to offer those parties any OS-level integration. That's in contrast with platforms like Amazon Alexa, where people can set one of multiple music services as their default, Apple Music among them.
    Alexa is not a platform anymore than Siri is. Apple does not charge companies to have Siri access their app. They can integrate with a free app all day long. Amazon is not marketing their service and maintaining a platform that supports their app and facilitating as well as providing sales support for the subscription either. Too different situations. 
    MacPro
  • Reply 14 of 41
    LatkoLatko Posts: 398member
    Power of defaults is strong.

    Relative to the number of preinstalls, this accomplishment is incredibly poor.
    edited April 5 apricot88chemengin
  • Reply 15 of 41
    22july201322july2013 Posts: 836member
    I wanted to read the original WSJ article. When I found the article online, it said that I couldn't read the entire article without a WSJ subscription. So then I thought, whey not look for it on Apple News+? Then I found it. So then I thought, why didn't the AI article include a link to the News+ story? I'm not sure if you can "link" to a story on News+. If any website should include a link to News+ it should be AI. If Apple doesn't have a way to "link" to a News+ story they are missing a great way to promote their service.
    kruegduderandominternetpersonlostkiwiwatto_cobra
  • Reply 16 of 41
    Latko said:
    Power of defaults is strong.

    Relative to the number of preinstalls, this accomplishment is incredibly poor.
    How do you know? I have an Apple Music family plan. I can have up to 6 members on my plan. For just me alone I actively use AM on my iPhone, Watch and 2 iPads (I’m not counting 2 Apple TVs and my Mac). So, at a minimum I have 3 “pre-installs” myself. I’m sure I’m not the only one in this or a similar situation. 
    watto_cobra
  • Reply 17 of 41
    matrix077matrix077 Posts: 793member
    If Apple doesn't have a way to "link" to a News+ story they are missing a great way to promote their service.
    Share sheet, Copy. Very easy. 

    People with News installed will go to News. People who don’t have will go to WSJ website. 
    watto_cobra
  • Reply 18 of 41
    anantksundaramanantksundaram Posts: 19,417member
    Latko said:
    Power of defaults is strong.

    Relative to the number of preinstalls, this accomplishment is incredibly poor.
    I totally agree. With nearly 600 million active iTunes accounts, this is not a home run.
    muthuk_vanalingamchemengin
  • Reply 19 of 41
    Latko said:
    Power of defaults is strong.

    Relative to the number of preinstalls, this accomplishment is incredibly poor.
    I totally agree. With nearly 600 million active iTunes accounts, this is not a home run.
    This report is US only. How many of those active accounts are in the US?
    cornchipwatto_cobra
  • Reply 20 of 41
    genovellegenovelle Posts: 982member
    HenryDJP said:
    tylersdad said:
    Do these paid subscribers include people like me who get Apple Music for free through Verizon?
    I would say perhaps not. Firstly not everyone has Verizon  and not everyone has an unlimited data plan which is required to get the Apple Music promo that only last 6 months anyway. 
    Not anymore. They’ve extended it indefinitely as long as your plan is active.  
    cornchip
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