In the race for dominance over the music streaming space, Spotify has announced that it has added 8 million new paid subscribers since the start of 2018, to reach a figure of 83 million paid subscribers. The figure is far ahead of Apple Music, which reports 40 million paid subscribers. Spotify has a total of 180 million subscribers, with the majority being free users.
In comparison, Apple Music only offers the Beats 1 online radio station for free, while its on-demand music streaming service is entirely paid. Apple Music also operates in more countries worldwide than Spotify, including India where Spotify is yet to enter the market. Spotify’s ‘freemium’ tier is supported by ads, which earns it additional revenue apart from subscription fees collected from paid subscribers.
Many of Spotify’s paid users subscribe through various promotions, as well as a revenue sharing bundle deal with video streaming service Hulu. As a result, the streaming service has a lower revenue per user than Apple, which has some of its users on its three-month trial scheme. After the trial, Apple Music charges users a monthly fee, which is currently Rs 120/month in India. Spotify’s losses have widened this year, which does not concern the company in the long run as it’s current goal is to improve its subscriber base.
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Both Apple Music and Spotify are available on both the iOS and Android platforms, ensuring their wide reach among users. However, Spotify is yet to launch in many key markets, including India. Apple Music, on the other hand, has the advantage of being the default music app on Apple iPhones, which helps it sign on premium users for its streaming service.