The result: Spotify’s rate of subscriber growth has accelerated, but also its conversion rate has crept up from 25% in May 2014 to around 30% now. Far from putting the brakes on Spotify’s premium growth, Apple Music’s launch has spurred both product and marketing innovation at its rival. The truth appears to be more positive, for now: both models are ‘winning’ if the goal is converting free music listeners into paying subscribers. The temptation for journalists and music-industry execs alike is always to look for The One Model That Will Win – if Apple Music is winning, Spotify has to be losing and vice versa. For Spotify, it’s the much-discussed permanently-free tier, with the upgrade to premium being optional for users. That’s 21 million new paying customers for streaming music, with the caveat that we don’t know how many of them were previously paying for other services.Īt this point, the competition between Spotify and Apple Music is fuelling strong growth for both services, and their differing takes on “freemium”.įor Apple, it’s a free three-month trial accessed through the Music app preloaded on all its devices, plus iTunes on the desktop, but then a hard stop where users must start paying to continue using it. Since June 2015 when Apple’s streaming service launched, Spotify has added 10 million paying subscribers, while Apple Music has signed up at least 11 million – the figure it released in mid-February. Yesterday’s news that Spotify now has 30 million paying subscribers brought the company’s competition with Apple Music into focus again.
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