What you need to know
- Apple is converting paying customers to Apple Music 2.5x faster than Spotify.
- That's according to analyst Gene Munster.
- He says that only 8% of iPhone users pay for the service, leaving plenty of room for growth.
Analyst Gene Munster says that according to Loup Ventures estimates, Apple is converting paying customers to Apple Music at 2.5x the rate of Spotify.
In his most recent reportMunster states:
Munster made the remarks in the context of discussing Apple's rumored subscription service bundle the company may release later this year. Commenting on how iOS ownership impacts subscriber growth on Spotify and Apple Music, Munster notes that Apple Music is growing at 2.5x the rate of Spotify on iPhone because of its integration.
Munster says that only 8% of active iPhone users pay for the service, around 82 million people. This also shows that there is plenty of room for growth in the segment for Apple. It's important to remember that Apple does not share its Apple Music customer figures, so these are based on estimates and tidbits shared by Apple regarding various milestones:
Munster and Loup Ventures also estimate that the "average Apple Music subscriber" pays around $7 per month for the service (there are different price tiers), meaning it currently equates to around $6.8 billion a year in revenue for the company. You can read the full report here.
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9