“As reported yesterday, for the first time in 13 years, Apple broke their streak of quarterly revenue growth. The revenue decline is being attributed to slowing iPhone sales and overall macro economic trends (i.e. China),” George Howard writes for Forbes. “In an otherwise gloomy report, there was a surprising bright spot: Apple Music subscriptions have surpassed the 13 million mark, up from the 11 million announced two months ago.”

“In thinking through how to explain this accelerating rise, it’s relevant to remember that the Apple Music launch was far from perfect,” Howard writes. “I expressed my disappointment that Apple – a company that is able to create perceived value around products better than any other firm – elected not to attempt to do so with respect to music.”

“Now it appears that Apple may very well be creating this perceived value in the eyes of customers, which is resulting in distinguishing their product from others, reducing churn and growing subscribers,” Howard writes. “There have been a number of theories to explain how this differentiation is taking place, but they seem to coalesce around recommendations… Over the past months, I increasingly found myself checking the “For You” section of Apple AAPL -5.94% Music and being entertained, surprised and occasionally delighted, while having precisely the opposite experience with Spotify.”

Read more in the full article here.

MacDailyNews Take: Oh ok. (smirk)

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 eventually (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).

Spotify could quickly be left with an unprofitable system, with a dwindling music library because they cannot afford to pay music royalties. — MacDailyNews Take, June 9, 2015

SEE ALSO:
Apple Music adds another million subscribers in 1 month, surpasses 11 million paying members – February 12, 2016
Apple Music subscribers could hit 100 million users in 6 years – January 11, 2016
Apple Music nabs 10 million subscribers in 6 months, which took Spotify 6 years – January 10, 2016
Uh-oh, Spotify: People are paying up for Apple Music – November 5, 2015
Why Apple Music will win in streaming music – October 27, 2015
Apple Music takes a huge bite out of Pandora – October 23, 2015
Taylor Swift calls Spotify a ‘start-up with no cash flow’ – August 4, 2015
Oh ok, Spotify listeners are upgrading to Apple Music – July 19, 2015
Apple Music could kill more than just Spotify, it could kill music labels, too – June 25, 2015
Why Apple Music will gut and publicly execute Spotify – June 10, 2015
Spotify CEO claims to be ‘ok’ with Apple Music – June 9, 2015
Jimmy Iovine and Eddy Cue: Apple Music gunning for Spotify, YouTube, and terrestrial radio – June 9, 2015
Apple Music’s huge advantage over Spotify – June 9, 2015
Apple’s revolutionary Apple Music just might prove its skeptics wrong – June 8, 2015
Apple unveils revolutionary Apple Music service – June 8, 2015