Apple Music has 21 million paid subscribers in the U.S. vs. 20 million for Spotify, according to Loop Venture’s analyst Tom Munster. That gap will widen quickly based on Munster’s other big conclusion: Apple is converting potential customers into paying customers at a rate 2.5x faster than Spotify.
From Loop Ventures
From a note to subscribers by Loup Ventures’ Gene Munster via 24/7WallSt
- In July, Tim Cook reported that Apple Music became the market leader in terms of paid subs in North America and Japan. We estimate Apple Music has 21m North American subs vs. Spotify at 20m.
- Adjusting for addressable market (we estimate that 95%+ of Apple Music subscribers are on iOS), Apple is converting potential customers into paying customers at a rate 2.5x faster than Spotify.
- Apple’s higher conversion rate can be attributed in part to iPhone owners having more disposable income compared to Android owners. A second, more material contributor is Apple’s ownership of iOS which distributes a seamlessly integrated music experience along with prompts to get iPhone owners to subscribe.
- Spotify still controls the global paying music streaming market with about 62% share, down slightly from 65% in Sep-17. Apple has grown to 34% from 30% in Sep-17. Pandora has lost share from 6% to 4%.