A new report from Loup Ventures says that the research group’s estimates indicate that Apple is converting potential customers of Apple Music into paying customers at a rate 2.5x faster than Spotify.
“We believe this faster conversion is driven by consumers valuing integrated experiences, which Apple’s ownership of iOS provides,” analyst Gene Munster write. “Separately, iOS owners have more disposable income than the average Android owner, which also plays into paid subscriber adds.”
Other key points from the Loup Ventures’ report include:
° Apple Music has room to grow with 82 million subscribers out of 980 million active iPhone users (8%) paying for the service.
° The average Apple Music subscriber is paying about $7.00 per month, which equates to about $6.8B in revenue this year, or 2.5% of total revenue.
° While Apple Music is growing paid subscriptions faster than Spotify, the overall market share between the two companies has remained stable over the last two years.
° Spotify has 34% global share compared to 20% for Apple. Loup Venteures estimates market shares for the two companies were 35% and 18% respectively in 2018.