Apple Music Is Converting Customers Faster Than Spotify
When it comes to music streaming, Spotify is leading the way and there’s really no question about it. However, it seems that the company definitely needs to step up their game because according to a report from Loup Ventures, at the rate Apple Music is converting its customers, they could catch up soon.
The report suggests that Apple Music’s conversion rate for customers is 2.5 times that of Spotify, meaning that the company is somehow managing to convince customers to hop on board the Apple Music bandwagon a lot more faster than Spotify. The study found that in June 2020, Apple’s quarter-on-quarter growth was at 10%, versus Spotify’s at 6%.
It is possible that due to Spotify’s overall size that their growth is slowing down a bit, but according to Loup Ventures’ Gene Munster, “We believe this faster conversion is driven by consumers valuing integrated experiences, which Apple’s ownership of iOS provides. Separately, iOS owners have more disposable income than the average Android owner, which also plays into paid subscriber adds.”
Apple Music is still pretty far from matching Spotify’s paid subscriber count, which is at 82 million and 138 million respectively. Also, given that Spotify has a free tier, the company’s overall subscriber base is a lot bigger.