Apple Music will never catch up to Spotify if people keep cancelling their subscriptions…
Last week, Cowen’s John Blackledge and Tim Arcuri shared some information in a recent report, on the rate of which Spotify and Apple Music lose subscribers on a monthly basis. According to Cowen, Apple Music have a subscriber churn rate of 6.4% – which is nearly 3 times higher than Spotify, whose churn rate is 2.2%.
Many people have speculated that Apple’s streaming service has the potential to outgrow Spotify. But, in light of this new information it is hard to see this being a possibility. At last count, Spotify had surpassed 30 million paying users, and Apple Music announced half of that, with 15 million paying users.
Both streaming services are adding on average of one million paying users per month. This in itself makes it difficult for Apple to catch up to Spotify. But, if they are also loosing more subscribers each month than Spotify, then this makes is near enough impossible.
Apple have been working on securing as many artist exclusives as possible, in a bid to sway customers from Spotify and other competing streaming services. However, according to this new information it may be working in terms of getting people to sign up, but it’s not keeping people around.
Now, there are talks looming around Apple buying Jay Z’s Tidal streaming service. If this is the case, then Apple Music may have a chance of becoming the number one streaming service in the music streaming market. Without a Tidal takeover the chances of Apple Music catching up to Spotify seem very slim, unless new growth strategies are implemented.
The post Apple Music Loses 3 Times More Users A Month Than Spotify appeared first on Digital Music News.