Why Hitting 27 Million Subscribers Is Bad News For Apple Music

At WWDC Apple revealed that its Music streaming services had hit 27 million subscribers. Bizarrely this wasn't presented as the disappointment it so clearly is, something which demonstrates that it is badly losing the streaming battle to Spotify, despite all of the advantages of having its own ecosystem to underpin Music.

The 27 million number announced by Apple amounts to a 7 million increase in the last 6 months and 14 million in the last 12. So whilst adoption good, the rate of adoption is stable.

Spotify's rate of adoption is stable too. It is reliably adding 10 million paid subscribers every six months. Which is quite incredible in the face of such high profile competition. Spotify is outperforming Apple in paid subscribers.

The net effect is the gap between Apple Music and Spotify is growing. Apple is firmly number two in a market where it should really be a strong number one, given its iPod and iTunes Music Store heritage.

A sign that Apple delayed far too long before getting on the streaming bandwagon? I would say so.


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