Apple Music Is Having Zero Impact on Spotify, Pandora, and YouTube…

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Apple Music launched on June 30th.  It’s almost like it didn’t happen.

(1) Spotify App Downloads, App Store/iPhone.

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(2) Pandora App Downloads, App Store/iPhone.

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(3) YouTube App Downloads, App Store/iPhone.

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Image by Jeremiah John McBride, licensed under Creative Commons 2.0 Generic (CC by 2.o).

20 Responses

  1. DavidB

    Presumably, people don’t get the Apple Music app from the iOS App Store (I certainly didn’t), so all this shows is that *among the competitors to Apple Music*, Spotify, Pandora and YouTube have retained their ranking. Which is not earthshaking news.

    • Paul Resnikoff

      That’s correct, though the far more important line is the blue one, which shows overall rankings. Apps are incredibly competitive, and blue line tracks the overall marketplace. There doesn’t seem to be any real decline in demand outside of normal variation (1-3 slots, up or down).

      I may take out the red line to remove this distraction.

    • Pandora pays too much

      Here are some other facts:

      Pandora users still spend more time streaming music on Pandora each month than all U.S. YouTube users spend streaming all YouTube videos (music and non-music combined) each month. That stat is for U.S. usage only, so it is an Apples-to-Apples comparison. All other sources of music streaming combined stream about 25% of what Pandora streams each month. You can dog Pandora all you want, but U.S. users still love it.

      On mobile, U.S. users (there are about 80 million of them) continue to spend more time on Pandora than on any other music app (approximately 1.76 BILLION hours/mo). Pandora generates more revenue per hour of use than any other free music app (they have grown from $0.02 per hour to $0.046 per hour in two years). And Pandora has 1,746 passionate employees who are dedicated to making the music industry a better place for everybody. Here is a telling stat: who has more sales people, Pandora, or all of the major labels combined?

      Pandora has paid more to labels and artists than any other free streaming music provider-by a long shot. Pandora is growing the pie, and unlike many new services, more of that pie is going to more artists than ever. That too is a fact.

      • FarePlay

        Is this another misguided memo from Tim Westergren? Or a comment from a songwriter who just got a check for $6.66.

        Or perhaps a brief from their legal department about their next attempt to lower payouts? Whatever the circumstance it feels contrived.

        • Stine

          Agreed, FarePlay. And it’s worth keeping in mind that regardless of any money Pandora pays artists, they’ve repeatedly tried not to pay artists. They’ve repeatedly tried to pass legislation that would prevent them from having to pay artists anything, and they’ve said, countless times, that they shouldn’t have to pay artists anything. Westergren and his cronies can back peddle all they like but they’re still an awful company, and one artists should run from.
          As for Apple Music, I have little interest in what apps are being downloaded. I care about what actual listeners are using and which companies want to work with artists moving forward to create something better.
          Spotify has always felt clunky and awkward to me and I expected the same from Apple Music. I’m quite happy to have been proven wrong and will be very happy to give them the $9.99 a month Spotify never felt deserving of.

          • Pandora pays too much

            Stine, You are under-educated or a liar. Pandora has NEVER advocated to pay no royalties. Nor have they operated a day without paying royalties. It is terrestrial radio that pays no royalties. If terrestrial radio paid the same royalties Pandora pays, the same way Pandora pays them, there would be $12 billion of royalties paid in 2015 with almost half of that amount bypassing labels and being paid DIRECTLY to artists via SoundExchange. It’s strange that you spend any effort criticizing Pandora, and no effort on getting Radio to pay or your label to take less. The latter two are where you will find the real money.

  2. Troglite

    For me, the two most plausible interpretations of these data points are:

    Until the 90 day trial is over, users don’t have to make a choice. These trend lines may look dramatically different in another 3 – 6 months.

    Perhaps the pie is actually growing instead of being sliced up into smaller pieces. I’d certainly welcome that, but I remain skeptical.

  3. Versus

    I installed the iTunes update but forget that Apple Music is part of it. It does not stand out in any way on the App, so I forget it exists. Maybe it should have been a separate app from iTunes.

    • FarePlay

      The most important advantage that Apple Music had was the potential to cross market their streaming service and drive as many sales as possible to their iTunes store. While sales of paid downloads or clearly on the decline, to simply abandon the category is a poor business decision.

      Aside from the hybrid, Sirius XM, which will lose their in car advantage and ability to charge premium rates, streaming music has so far been a loser, financially, on both sides of the business. Outside of being an IPO exit strategy game, which created a great payday for execs and investors at Pandora, interactive music streaming is a POS.

      Perhaps Apple believes they can spin off Apple Music as a stand alone offering.

  4. Anonymous

    I’m more interested in its impact on iTunes sales…

  5. harmony

    there is absolutely no reason to run the apple music right now. the benefits over spotify are not that great.

    it will be a slow success but they could own streaming 5 years from now if they play it right. it will not be too hard for apple to do this. every laptop and phone someone purchases opens up with apple music right there and it works… the only reason to go to spotify is for the social networking features. this is apples achilles heel which may sink them. they can always add it down the road though. give it 3-5 years.

    • Paul Resnikoff

      I’ve always thought that Apple could win with the newbie crowd. But Apple Music seems too complicated to figure out for someone who just does a little downloading now and then. Add the whole ‘bloatware’ issue, and the ball is still in Spotify’s court.

  6. 13

    let’s face it. google is going to swoop in and buy spotify (at just the right PR moment). apple’s dominance in streaming is going to be that much tougher. 5 years may be stretched to 10. who knows. NO ONE has a crystal ball.

    • There is something...

      I don’t really see Google buying Spotify, it doesn’t make sense with their own Music Key already available.

      But the most important thing is, I don’t see the majors (and guys like Merlin) allowing the digital music market being owned 99% between Apple and Google. I mean, if you have Apple with iTunes and Apple Music on one side, and Google with Youtube and Spotify on they other, NOBODY could compete, not even Facebook.

  7. Ongue

    For those who live outside US and want to access Spotify, you can use UnoTelly as I do to get around the geo block.

  8. Um....

    You think Music Key is already available?

    That alone puts your opinion on ALL of these issues in serious question.

    Moving on, the major record co’s and guys like Merlin are the LAST folks to be able to stop the digital music market from being essentially owned between Apple and Google (with Rhapsody and others trailing along). In the first place, these are the same folks that lobbied Congress and the DoJ to allow them to consolidate the recorded music business form 6 to 5, to 4, to 3.

    And they are under constant investigation themselves. There’s a good bet that the major record co’s wont even want to TRY to ask for any type of scrutiny of the music market – which would include looking at their market power, and their deals with Google, Apple and Spotify.

    Let’s not pretend that the music marketplace – or the internet/tech and media industries – have somehow been preserved as some perfect competitive marketplace thus far. They haven’t. Consolidation and 800lb gorillas having major market share apparently just isn’t that big of a big deal, here.