How quickly will Apple Music overtake Spotify in the United States? As early as this summer, according to a new report.
Solidifying its position as the global streaming music leader, Spotify announced last month that it has more than 70 million paid subscribers. Last September, Jimmy Iovine stated that Apple Music had slightly over 30 million users. The service doesn’t offer a free-tier like Spotify. However, ahead of Spotify’s highly-anticipated Wall Street bow, Apple Music may soon overtake its Swedish rival in the US.
According to the Wall Street Journal, Apple Music has added subscribers at a much higher rate in the US. Per month, the platform has grown 5%. Meanwhile, Spotify has only grown at only 2%. WSJ cites music industry sources who have access to growth figures from both companies.
The news may hit the Spotify hard ahead of its public offering. Private trading in the company pushed Spotify’s valuation to well over $19 billion last year.
Once the company’s Wall Street offering goes live, however, investors worry that it may never turn a profit. In the past few years, Spotify’s losses have nearly tripled. In 2015, the platform posted operating losses of $205 million. A year later, the streaming music service lost $600 million.
Lavish spending also has unnerved potential investors.
According to a report last December, top executives earn seven-figure salaries. The company will also spend more than $566 million on a 17-year lease in Manhattan. Spotify had to pay almost $31 million in upfront payments.
Apple Music has also confirmed to WSJ that it now has 36 million total subscribers around the world. WSJ calculates that Apple Music will become the top streaming music platform in the United States this summer.
WSJ’s report includes a silver lining for the Swedish company. Despite Apple Music launching in more countries than its Swedish counterpart, Spotify has a slightly faster subscriber growth rate around the world. So this is going to be a very interesting horserace in the coming months and years.
Featured image by iamOTHER (YouTube screengrab)