Earlier this year, Spotify announced that it had 70 million paying subscribers, reaffirming its place as the number one streaming service in the world, with Apple Music a distant second with 30 million as of September last year. In a new report in The Wall Street Journal, it appears that Apple is gaining subscribers at a higher rate in the United States, and will surpass Spotify for the number one spot this summer.
Globally, Spotify remains ahead, but Apple is growing at a higher rate in the US — five percent a month verses Spotify’s two percent per month. The US is the largest market for music streaming with 30 million paying subscribers, and Apple’s growth there means that it’s becoming a serious challenger to Spotify. Globally, Apple tells the WSJ that it now has 36 million subscribers.
The simple fact is that Apple is a multi-industry company which can covers any potential costs and losses on its streaming side with Apple Music through its over revenues and profits where as Spotify is struggling to cover it’s costs and branch the company out. This is why Apple Music will win out long term and the smart money is to switch to Apple Music as consumer.