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Report: Apple Music has vaulted past Spotify in US with 28M paid subscribers
Apple Inc.’s big bet on services seems to be paying off in the music streaming market.
The Wall Street Journal today reported that Apple Music has overtaken rival Spotify Technology AB in U.S. subscriber count. According to the sources who spoke with the paper, the iPhone maker’s service had over 28 million paid users in February compared with Spotify’s roughly 26 million.
Apple reportedly caught up to its Swedish competitor by opening a fairly substantial lead in subscriber growth rates. The Apple Music user base has been expanding at a rate of 2.6 to 3% month-over-month, the tipsters said, while Spotify is fluctuating between 1.5 and 2%.
If accurate, these figures give Apple a clear edge in the U.S. music market as far as paid subscribers go. But the company still has a long to go before it catches up with Spotify in the global arena. The Financial Times reported in December that Apple Music had a total of 56 million subscribers and free trial users worldwide, a far cry from the 96 million paying users Spotify reported early February.
The Swedish firm’s lead widens even further when taking into account its service’s free tier. Spotify disclosed in February that more than 207 million people worldwide stream content on the platform.
The competition over users willing to pay for audio content is increasingly moving beyond music. In February, Spotify picked up podcast startups Gimlet Media Inc. and Anchor FM Inc. for a combined $337 million to expand its content selection. The company also disclosed plans to spend up to $167 million more this year on buying players in the podcast market.
In parallel with the acquisition spree, Spotify is escalating its rivalry with Apple. The company recently filed a regulatory complaint against the iPhone maker over certain Apple Store policies, most notably the rule that prohibits developers from using third-party payment services for in-app purchases. Some industry watchers on Wall Street have stated that Spotify stands a good chance to come out as the winner in the feud.
Photo: Apple
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