With its subscribers substantially less–about half–than Spotify’s, Apple Music still has a ways to go before it catches up. It has, however, added roughly 6 million subscribers in just under five months. This equates to 1.2 million subscribers every four weeks for the past five months.
Apple Music is slated to dominate Spotify in the United States during summer of 2018
According to the Wall Street Journal, “Apple’s subscriber-account base in the U.S. has been growing about 5% monthly, versus Spotify’s 2% clip.” If Apple Music does overtake Spotify this summer, then this could be (better) news for rightsholders, as Apple pays the second highest streaming royalty (second to Tidal).
More streams on Apple Music means more revenue for rightsholders
The average stream on Apple Music equates to about $0.00735, which holds the second largest spot in regards to streaming revenue, according to Musically. “That’s 68% more than Spotify.”
Streaming royalties don’t work entirely in rightsholders’ favor. If Apple and Spotify’s totaled current subscriber base (106 million) paid the “standard” $9.99/mo., then the two services would churn out a mind-boggling $12.7 billion in a 12 month timeframe, according to Music Business Worldwide.
Discounts are affecting prices
Spotify and Apple continue to offer steep discounts for students and families to continue growing their platform. This is an effort to greatly increase their subscriber base. These discounts, especially the student discount, are usually half of what the initial price is. Paired with the varying territories the streaming services are available in, these discounts greatly affect prices.
According to Music Business Worldwide, in 2016, Spotify’s subscribers spent just $61 annually. This is about $30 cheaper than what they paid back in 2013.