Apple’s five-year-old subscription to music streaming service, Apple Music, which is already number 1 in America, the No. 1 music market, wins on fifteen-year-old Spotify, which continues to cling to management around the world, Apple analyst Gene Munster said Friday.
Gene Munster for Loup Ventures:
Adjustable Market Adjustment (we estimate that more than 95% of Apple Music subscribers are on iOS), our estimates show that Apple converts leads into paying customers at a rate 2.5 times faster than Spotify. We believe that this faster conversion is driven by consumers who value integrated experiences, which Apple’s ownership of iOS provides. Separately, iOS owners have more disposable income than the average Android owner, who also records in paid subscribers.
Apple Music has room to grow with 82 million subscribers out of 980 million active iPhone users (8%) paying for the service.
We currently estimate that Spotify has a 34% global share compared to 20% for Apple. We estimate that the market share for the two companies was 35% and 18% in 2018, respectively.
Since June 2018, Apple Music has grown paid subscribers by 82% compared to 66% for Spotify.
We estimate that less than 5% of Apple Music subscribers are Android users.
MacDailyNews Take: Spotify is a money-losing company that cannot compete and has already been overshadowed by Apple Music in the world’s number 1 market for recorded music, USA.
Seeing the writing on the wall, Spotify has run whining to the EU like little babies crying for mum.
“This boils down to the fact that Spotify wants to use the platform that Apple built and maintains at a great cost free. ”- MacDailyNews, March 13, 2019
Spotify is good at two things: Losing money and whining to the authorities.