Spotify is experiencing a high US paid subscriber churn rate, and Apple Music could be the culprit, according to a new analysis by Consumer Intelligence Research Partners (CIRP).
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A new Consumer Intelligence Research Partners analysis shows that 35% of Spotify users in the United States paid for its Premium plan in Q2 2018. 55% of those have an individual subscription and the rest signing on as part of a Family Plan.
11% of Spotify ad supported listeners during Q2 converted to Premium subscribers and 74% of trial Premium subscribers continued with their membership after the trial. Both are impressive numbers that Spotify is likely to highlight on its earning call this Thursday.
Not so impressive is that 16% of paid Spotify Premium subscribers ended their subscription in the last 3 months. Some reverted to their free ad supported Spotify or stopped using Spotify altogether.
A major contributor to the USD high churn rate
is Apple Music.
“The monthly payment plan does allow Premium subscribers to cancel at any time, a situation that Spotify calls ‘churn’. We estimate a US churn rate of 16% for the quarter, higher than what Spotify suggests is the global rate” says CIRP co-founder Mike Levin. “Again, we attribute this to a competitive US market, with many choices for paid and free streaming music services.”
H/T 9to5Mac