Apple Music is rapidly advancing against Spotify in the field of paid subscribers, not least because of its marketing number in captivity, according to an analysts' memo that was shared with AppleInsider Tuesday.
"Adjustment for addressable market … Apple cverts potential customers 2.5x faster to paying customers than Spotify," writes Gene Munster, analyst at Loup Ventures. In North America, where Apple CEO Tim Cook recently claimed to have caught up with Spotify in paid customers, Munster estimates that Apple Music has 21 milli subscribers against 20 milli Spotify.
The analyst suggests that although Apple's cversi rate can be partly attributed to iPhe owners with more disposable income, the larger factor is Apple's ctrol over iOS – which not ly offers a "seamlessly integrated music experience", but built-in advertising that people try cvince you to subscribe. The company has so far denied the integrati of third party streaming services into iOS and Siri, and although Spotify may be popular, iPhe owners need to actively look it up.
Apple Music has "room to grow", with 45 milli worldwide subscribers of about 780 milli active iPhe users, says Munster. Spotify is still said to dominate the global music streaming market, although its share has dropped from 65 to 62 percent year-year. Apple has grown from 30 to 34, while Pandora has decreased from 6 percent to 4.
Spotify would have at least e advantage, namely that it works well both iOS and Android devices. Although Apple Music is technically available for Android, Munster estimates that 95 percent of subscribers work iOS. Many of the reass to use the service disappear Android, such as Siri voice commands or HomePod compatibility.
Not mentied by Munster is the fact that Spotify, in ctrast to Apple, has a free ad-supported layer next to the registratis. Although free listeners generate less mey, they can ctinue to work after each trial period and eventually sign up if they have the mey for mthly costs. Spotify has 180 milli or more listeners worldwide, including 83 milli Premium subscribers.