Apple Music has become a click in just a short period of time, reaching over 11 million subscribers at present. Its growth since its development eight months ago has become a threat for Spotify.
Rumors have it that the increasing popularity of Apple Music might actually beat the popularity already enjoyed at present by its rival Spotify in the field of paid subscriptions.
According to TechTimes, Apple has released its latest report claiming it has over 11 million paying subscribers for the $9.99 and above monthly fee alone. Spotify, on the other hand, is reported to have over 20 million subscribers for the same level and amount of subscription fee. The difference, however, lies in the period of time these two companies were able to hoard these numbers. For Apple, it took six months whole it took more or less five years.
In case Spotify will be overtaken by Apple Music, the former will be facing a huge loss. "Not only would it lose bragging rights as the world's number one music streaming service, it would also lose clout in terms of negotiating exclusives and licensing deals with record labels. While Apple can also afford to treat its music streaming service as a loss leader if unprofitable, Spotify doesn't have that luxury with its core business, which has been losing money for years," the TechTimes report states.
However, as of the moment, the leading music streaming application is not threatened because it has been reflecting strength in acquiring new paid customers of its own. Plus, as reported, Spotify is about to reach its 30th million mark with regard to paid subscriptions.
Meanwhile, LATimes has reported almost a year ago that analysts predicted Apple's entry into the subscription business could result to a turbocharge in the industry.
"This is expected to be a mainstream, possibly transformative announcement," said Larry Miller, a music business professor at NYU-Steinhardt. "There are some really good subscription services already out there," Russ Crupnick of research firm MusicWatch.. "The question is, what is Apple going to say to the mainstream music fans that shifts the way they're listening now to paying a subscription?" Crupnick added.
Were their predictions wrong all along or is Apple Music not bound to have a long streak in this industry?
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