Global tech giant Apple might finally be able to catch up to its longtime competitor in the music business. According to a report by the Wall Street Journal, Apple Music’s rate of growth in paid subscribers is over double Spotify’s growth in the U.S., with the former adding 5 percent to its user base every month while the latter adding two percent. If this rate continues, Apple could surpass Spotify as the country’s #1 music service as soon as summer 2018.
The only way to listen to Apple Music before you subscribe is the free 3-month trial, unlike Spotify’s free ad-filled alternative. It’s no surprise Apple has around three more times more trial subscribers than Spotify. Another way Apple has been increasing it’s subscribers is through exclusive discounted rates, such as being one of NikePlus’s perks when you reach certain training milestones.
Tech giants like Apple and Amazon can afford to operate streaming services with trial periods and low, cut-rate subscriptions because they primarily sell other products and services (Amazon Music Unlimited costs $4 a month for Echo owners) so it isn't clear how long Spotify will be able to compete with these tech giants as a public company, under pressure to turn a profit.
However, Apple does have to catch up, with Spotify boasting 70 million users while the latter having around 36 million users. Spotify’s influence is significantly larger internationally where the service has been around longer and Androids hold a primary majority in the UK and parts of Asia. Even so, it’s easy to see why Spotify’s U.S team could be nervous to lose a lead in a country with a huge market.
