Analyst: Apple Music growing 2.5 times faster than Spotify

Apple’s five-year-old subscription music streaming service, Apple Music, already No.1 in America, the No.1 music market, is gaining on fifteen-year-old Spotify which continues to cling to its lead worldwide, Apple analyst Gene Munster said Friday.

Behind-the-scenes battle between Apple and Spotify revealed. Image: Apple Music
Apple Music

Gene Munster for Loup Ventures:

Adjusting for addressable market (we estimate more than 95% of Apple Music subscribers are on iOS), our estimates indicate that Apple is converting potential customers into paying customers at a rate 2.5x faster than Spotify. We believe this faster conversion is driven by consumers valuing integrated experiences, which Apple’s ownership of iOS provides. Separately, iOS owners have more disposable income than the average Android owner, which also plays into paid subscriber adds.

Apple Music has room to grow with 82m subs out of 980m active iPhone users (8%) paying for the service.

We currently estimate Spotify has 34% global share compared to 20% for Apple. We estimate market shares for the two companies were 35% and 18% respectively in 2018.

Since June 2018, Apple Music has grown paid subscribers by 82% compared to 66% for Spotify.

We estimate less than 5% of Apple Music subs are Android users.

MacDailyNews Take: Spotify is a money-losing enterprise that cannot compete and has already been eclipsed by Apple Music in the world’s No.1 market for recorded music, the United States of America.

Seeing the writing on the wall, Spotify has run whining to the EU like little babies crying for mommy.

“This boils down to the fact that Spotify wants to use the platform that Apple built and maintains at great expense for free.” – MacDailyNews, March 13, 2019

Spotify is good at two things: Losing money and whining to authorities.

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