Spotify retains clear lead over Apple Music with 60M paid subscribers

AppleInsiderAppleInsider
Posted:
in iPod + iTunes + AppleTV
Spotify on Monday announced that it has 60 million paid subscribers, keeping it well ahead of Apple Music in the on-demand music industry.




The company had just 50 million Premium subscribers as recently as March, Reuters noted. In June the company said it had over 140 million active users in total, which would imply at least 80 million people are listening to the company's free ad-based tier.

At last month's Worldwide Developers Conference, Apple reported 27 million subscribers. Apple Music lacks any free listening option beyond a three-month trial.

Paid subscriptions generate more revenue than ads, however, and in fact Spotify has been working to convert more of its free customers to Premium, for its own sake and to appease record labels. Recent label negotiations have reportedly involved Spotify paying lower royalties, but agreeing to delay album access for ad-based customers.

The Swedish company is working towards an initial public stock offering, which the Financial Times claimed could happen as soon as the fourth quarter. Shares may appear on the New York Stock Exchange, Reuters said.

In recent months, Apple has been pushing original video content as a way of standing out from competitors like Spotify and Pandora. Its next big effort is ""Carpool Karaoke," coming Aug. 8. Spotify is reportedly looking into promoting podcasts, especially since that involves fewer label payments.
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Comments

  • Reply 1 of 32
    vukasikavukasika Posts: 102member
    It will be interesting to see how this competition develops. I wonder how many iPhone users are still using Spotify and if Spotify reducing artist royalties will impact their ability to preserve access to top-tier artist?  Furthermore, what happens if Spotify goes public and Apple buys as continue interest? I'm not sure Spotify is up for a shareholding war with Apple's war chest. Just my 2 cents of musing....
    bryanhopkinscornchip
  • Reply 2 of 32
    gmgravytraingmgravytrain Posts: 882member
    Good for Spotify. I'd hate to see the company go out of business. Competition is good for music subscribers. After being around as long as Spotify has, one would think they'd be making money hand-over-fist instead of struggling to stay afloat. AppleMusic has been around for a couple of years and certainly has a respectable number of paid subscribers. It's likely Apple isn't losing any money running the service. Apple certainly could afford to undercut Spotify or use other means to try to keep Spotify struggling. But why should Apple have a need to do something like that? Everyone praises Amazon for killing off other businesses, but it's really nothing to brag about unless you're Jeff Bezos or an Amazon shareholder. I think both Spotify and AppleMusic can coexist peacefully without too much friction as Apple can mainly stick to selling the service to Apple product users. That alone should be enough if Apple has about 750 million iPhones still in operation and that's not even including desktops, laptops and tablets. No point in Apple being overly greedy.
    lolliver
  • Reply 3 of 32
    19831983 Posts: 1,225member
    It seems adoption of Music has stagnated with that 27 million paid user count unchanged for a while now, while Spotify continue to grow. Is this going to be another failed experiment by Apple? I thought it would have a much larger user base by now.
  • Reply 4 of 32
    macxpressmacxpress Posts: 5,808member
    1983 said:
    It seems adoption of Music has stagnated with that 27 million paid user count unchanged for a while now, while Spotify continue to grow. Is this going to be another failed experiment by Apple? I thought it would have a much larger user base by now.
    HomePod will change this...I wouldn't sat 27 Million is a failed experiment either. We'll see if Spotify can make any money here...and keep making money. 
    cornchipwatto_cobraStrangeDayslolliver
  • Reply 5 of 32
    rain22rain22 Posts: 132member
    macxpress said:
    1983 said:
    It seems adoption of Music has stagnated with that 27 million paid user count unchanged for a while now, while Spotify continue to grow. Is this going to be another failed experiment by Apple? I thought it would have a much larger user base by now.
    HomePod will change this...I wouldn't sat 27 Million is a failed experiment either. We'll see if Spotify can make any money here...and keep making money. 
    Homepod isn't going to do anything. I'll get one and stream Spotify to it. 
    Spotify is a superior service with a vastly superior catalog and curation algorithms.
    If you're listening on gear capable of an iota of reference- the quality is far superior as well.

    Apple is at least 7 years behind. They have a lot of work to do to pry people away from other Services.
  • Reply 6 of 32
    rain22rain22 Posts: 132member
    vukasika said:
    It will be interesting to see how this competition develops. I wonder how many iPhone users are still using Spotify and if Spotify reducing artist royalties will impact their ability to preserve access to top-tier artist?  Furthermore, what happens if Spotify goes public and Apple buys as continue interest? I'm not sure Spotify is up for a shareholding war with Apple's war chest. Just my 2 cents of musing....
    Still using Spotify?? 
    I know over 10 personally who switched to Spotify after trying a streaming service- Apple's free trial. 
    Apple wouldn't buy Spotify. They would buy Tidal for the hifi and MQA rights.
    bryanhopkins
  • Reply 7 of 32
    macxpressmacxpress Posts: 5,808member
    rain22 said:
    macxpress said:
    1983 said:
    It seems adoption of Music has stagnated with that 27 million paid user count unchanged for a while now, while Spotify continue to grow. Is this going to be another failed experiment by Apple? I thought it would have a much larger user base by now.
    HomePod will change this...I wouldn't sat 27 Million is a failed experiment either. We'll see if Spotify can make any money here...and keep making money. 
    Homepod isn't going to do anything. I'll get one and stream Spotify to it. 
    Spotify is a superior service with a vastly superior catalog and curation algorithms.
    If you're listening on gear capable of an iota of reference- the quality is far superior as well.

    Apple is at least 7 years behind. They have a lot of work to do to pry people away from other Services.
    Streaming Spotify to it may not be straightforward....its setup to only work with Apple Music, hence my comments. 

    I've been a long time Spotify user (Paid) and made the switch over to Apple Music...couldn't be happier. I don't see why you wouldn't change to be honest. 
    edited July 2017 bryanhopkinspscooter63lostkiwiwatto_cobranetmagelolliver
  • Reply 8 of 32
    DiamondDNiceDiamondDNice Posts: 4unconfirmed, member
    macxpress said:
    1983 said:
    It seems adoption of Music has stagnated with that 27 million paid user count unchanged for a while now, while Spotify continue to grow. Is this going to be another failed experiment by Apple? I thought it would have a much larger user base by now.
    HomePod will change this...I wouldn't sat 27 Million is a failed experiment either. We'll see if Spotify can make any money here...and keep making money. 
    Homepod is ridiculously overprices speaker that will only be bought by the most diehard throw money at the screen apple fans. It's not going to drive people to a service. I'm surely not interested in a Homepod and Not a single friend of mine has even mentioned it.
    bryanhopkins
  • Reply 9 of 32
    macxpressmacxpress Posts: 5,808member
    macxpress said:
    1983 said:
    It seems adoption of Music has stagnated with that 27 million paid user count unchanged for a while now, while Spotify continue to grow. Is this going to be another failed experiment by Apple? I thought it would have a much larger user base by now.
    HomePod will change this...I wouldn't sat 27 Million is a failed experiment either. We'll see if Spotify can make any money here...and keep making money. 
    Homepod is ridiculously overprices speaker that will only be bought by the most diehard throw money at the screen apple fans. It's not going to drive people to a service. I'm surely not interested in a Homepod and Not a single friend of mine has even mentioned it.
    People said the same thing about the original iPhone. Oh and those MacBook Pros...people will buy it no matter who they are. For one thing, you don't know what it sounds like, how well it functions and what it will do for you in the future. 

    Just because you and 5 of your buddies aren't interested doesn't mean shit. I love people like you who always compare the rest of the market to what you and a couple of friends think. Well I know a whole 6 people including myself that don't like so that means nobody in this world will like it! 
    edited July 2017 bryanhopkinscornchippscooter63netmageStrangeDayslolliver
  • Reply 10 of 32
    foggyhillfoggyhill Posts: 4,767member
    Total bullshit, I'm considered a paying customer but I got a 2 year promotions from Rogers/Fido.
    So, Spotify is probably getting $3 buck per month from Rogers for my service.

    There is so much lying and dishonesty in reporting and so called analysts that its kind of sickening.
    Seamingly no one gives a crap about actual facts anymore.
    lostkiwiwatto_cobrajdgazlolliver
  • Reply 11 of 32
    linkmanlinkman Posts: 1,035member
    Spotify also maintains a clear lead over Apple in losing money.
    macxpresscornchippscooter63lostkiwiwatto_cobraStrangeDayslolliver
  • Reply 12 of 32
    toukaletoukale Posts: 38member
    What? Spotify has 60 vs Apple 27, Apple is doomed.  As usual Apple is always losing at something to some company.  It's a wonder those guys are still in business, roll eyes.
    cornchiplostkiwiwatto_cobraStrangeDayslolliver
  • Reply 13 of 32
    jcs2305jcs2305 Posts: 1,336member
    DiamondDNice said:
    macxpress said:
    1983 said:
    It seems adoption of Music has stagnated with that 27 million paid user count unchanged for a while now, while Spotify continue to grow. Is this going to be another failed experiment by Apple? I thought it would have a much larger user base by now.
    HomePod will change this...I wouldn't sat 27 Million is a failed experiment either. We'll see if Spotify can make any money here...and keep making money. 
    Homepod is ridiculously overprices speaker that will only be bought by the most diehard throw money at the screen apple fans. It's not going to drive people to a service. I'm surely not interested in a Homepod and Not a single friend of mine has even mentioned it.
    So this means nobody else could POSSIBLY be interested in buying this ?  Where is it that you and your friends got a chance to try and here the home pod so that you are able to make these types of statements?  It's 50.00 more than the Play 3, you sound like someone that posted here a while back around the time of WWDC. He said the 349.00 home pod was only for the mega rich or some crap like that. If you or,your people can't afford, it doesn't automatically make it a bad product. Stop the trolling nonsense ... 
    cornchipnetmageStrangeDayslolliver
  • Reply 14 of 32
    NY1822NY1822 Posts: 621member
    So they went from 40M to 50M in 5 months, then 50M to 60M in the next 5 months...so 50% growth in the last 10 months...obviously these numbers are being played with, just at the right time too, now that they are preparing to go public 
    cornchippscooter63macxpresslostkiwiwatto_cobralolliver
  • Reply 15 of 32
    kevin keekevin kee Posts: 1,289member
    rain22 said:
    macxpress said:
    1983 said:
    It seems adoption of Music has stagnated with that 27 million paid user count unchanged for a while now, while Spotify continue to grow. Is this going to be another failed experiment by Apple? I thought it would have a much larger user base by now.
    HomePod will change this...I wouldn't sat 27 Million is a failed experiment either. We'll see if Spotify can make any money here...and keep making money. 
    Homepod isn't going to do anything. I'll get one and stream Spotify to it. 
    Spotify is a superior service with a vastly superior catalog and curation algorithms.
    If you're listening on gear capable of an iota of reference- the quality is far superior as well.

    Apple is at least 7 years behind. They have a lot of work to do to pry people away from other Services.
    That's not my experience. I much prefer Apple Music because it caters to all my needs, and I found it is much superior than Spotify in service, catalog and curation algorithm. Just as it was your opinion, this is mine, so I can't say this is everyone's experience, but Apple Music just works better for me.
    cornchipmacxpresslostkiwiwatto_cobranetmagelolliver
  • Reply 16 of 32
    NY1822NY1822 Posts: 621member
    foggyhill said:
    Total bullshit, I'm considered a paying customer but I got a 2 year promotions from Rogers/Fido.
    So, Spotify is probably getting $3 buck per month from Rogers for my service.

    There is so much lying and dishonesty in reporting and so called analysts that its kind of sickening.
    Seamingly no one gives a crap about actual facts anymore.
    Totally agree...50% growth in paid sub in last 10 months is not believable....from 40-60
    Wherent they giving free subscriptions with New York Times accounts also. Sign up for NYT and get free Spotify premium account...you know they count these as paid subs
    https://www.nytimes.com/subscriptions/Multiproduct/lp8FRL9.html
    cornchipwatto_cobralolliver
  • Reply 17 of 32
    ace120387ace120387 Posts: 2unconfirmed, member
    I have free Spotify premium with Vodafone Ireland. I believe Vodafone is paying Spotify but of course it's less than the usual charges. I also have Apple music subscription which I like. But Spotify has better suggestion engine and playlists. Apple seldomly show me good recommendations but Spotify is always bang on. I guess it has to do something with apple strict privacy policies (that is they don't share listening history across users to make links between songs). Also Spotify has a web player. But I don't think there is a huge difference between songs collections. I hope apple catches up soon.
  • Reply 18 of 32
    pscooter63pscooter63 Posts: 1,080member
    After the initial round of free Apple Radio when it debuted, I wasn't so impressed, and allowed it to lapse.

    Then I got a free trial for Apple Music a few days ago, and gave it a whirl... this is so much better, the second time around.  Pretty sure they've hooked me this time.  Time will tell.
    lostkiwiwatto_cobralolliver
  • Reply 19 of 32
    macxpressmacxpress Posts: 5,808member
    The one thing Apple needs to fix is discovering music. Apple Music is great if you know exactly what you want, but if you don't then its not as good as Spotify. Will that make me switch to back to Spotify, no, but this is an area where Apple can improve. There's always room for improvement no matter what the service is. 
    lostkiwimuthuk_vanalingamwatto_cobratrumptmanlolliver
  • Reply 20 of 32
    Rayz2016Rayz2016 Posts: 6,957member
    macxpress said:
    The one thing Apple needs to fix is discovering music. Apple Music is great if you know exactly what you want, but if you don't then its not as good as Spotify. Will that make me switch to back to Spotify, no, but this is an area where Apple can improve. There's always room for improvement no matter what the service is. 
    Finally, an honest piece of critiscm from someone who's used it, rather than the usual "it'll fail because me and my three Apple-hating, basement-dwelling buddies don't like it" nonsense. 
    muthuk_vanalingamwatto_cobralolliver
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