Loup Ventures estimates that Apple has grown to 34% of the global payment music streaming market from 30% in September. And the research group says the service has room to grow with just 45 million subscribers out of 780 million active iPhone users (6%) paying for the service.
Spotify still controls the global paying music streaming market with about 62% share, down slightly from 65% in September, according to Loup Ventures. Pandora has lost share from 6% to 4%.
“Adjusting for addressable market (we estimate that 95%+ of Apple Music subscribers are on iOS), Apple is converting potential customers into paying customers at a rate 2.5x faster than Spotify,” says Loup Ventures. “Apple’s higher conversion rate can be attributed in part to iPhone owners having more disposable income compared to Android owners. A second, more material contributor is Apple’s ownership of iOS which distributes a seamlessly integrated music experience along with prompts to get iPhone owners to subscribe.”