“Streaming service Spotify leads the on-demand music business today, but it is increasingly facing challenges from a host of competitors, including Amazon.com, Apple, Pandora Media and Alphabet-owned YouTube, Cowen & Co. said in a report Wednesday,” Patrick Seitz reports for Investor’s Business Daily.

“After a decade of decline, the U.S. music industry is expected to see a compound annual growth rate of 4% from 2016 through 2021, led by rising adoption of streaming services, Cowen said,” Seitz reports. “Revenue from on-demand music services will double by 2021 and will rise from 18% of industry revenue this year to 40% by 2021, Cowen predicted.”

“Apple Music directly competes with Spotify’s subscription service,” Seitz reports. “Spotify has 30 million global subscribers, followed by Apple’s 15 million. In the U.S., Spotify has an estimated 8 million paid users, compared with about 4 million for Apple Music, Cowen said.”

Read more in the full article here.

MacDailyNews Take: Students, don’t forget the Apple Music student plan which discounts the service by 50 percent for those who are enrolled in an eligible college or university. More info here.

As we wrote over a year ago:

Apple Music has rendered Spotify’s future decidedly dimmer.

The best customers are those who pay. As demonstrated by years of data, form disparate sources, those paying customers are also significantly more likely to be iPhone owners than those who’ve settled for poor iPhone facsimiles. A healthy portion of these coveted customers will leave for Apple’s comprehensive offering which offers better family rates, more music, likely exclusives, and seamless integration across all Apple devices. It’ll even work with crappy Windows PCs and Android phones… (not that those are likely to be Spotify’s paying customers, but whatever, some of them will join Apple Music and maybe even graduate to Apple devices because of it).

Apple Music accumulating subscribers much more quickly than Spotify or Pandora – June 21, 2016
Taylor Swift dances like no one’s watching in new Apple Music ad – May 12, 2016
Apple offers students half-price $4.99 Apple Music subscriptions starting today – May 6, 2016