Digital Gabe
Cutting Edge Commentary On All Things Media

Apple Music Subs Surge

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Just one month ago Apple SVP Eddie Cue disclosed that their music streaming service had amassed 38M subscribers worldwide.  Then yesterday Apple confirmed a newly leaked story that they were up to 40M subs.  If both of those numbers are correct that means Apple Music is growing its user base by 5% per month.

In March I posted the graphic below showing Apple’s subscriber growth compared to Spotify.  While both platforms are increasing, estimates are that Spotify is growing at 2% MoM compared to Apple’s aforementioned 5%.  If those two growth rates hold Apple will surpass Spotify in WW subscribers sometime in the back half of 2019.  While neither company breaks out US-only listeners, analysts already think Apple has overtaken Spotify with 30Mish domestic subs.

While Apple Music’s growth is a nice to have for Tim Cook and team, it poses a much bigger challenge for Spotify.  They’ve built their business, and now gone public, by driving a grow-at-all-cost strategy.  It’ll be interesting to see how they react as their growth trajectory starts to slow while a very deep-pocketed competitor is just getting ramped up.

 

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