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How Apple Music Continues to Gain Subscribers

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Apple Music’s unique monthly users

According to market research company Verto, Apple’s (AAPL) unique monthly users totaled 40.7 million in March 2017, compared to 36.7 million users for Pandora (P), which occupied second place.

Spotify, iHeartRadio, and SoundCloud were the other top music services in the United States (SPY), with 30.4 million, 28.5 million, and 25.7 million unique users last month, respectively.

The research only considered users on smartphones and tablets, suggesting that Apple Music’s user base was over 41 million after taking the MacBook into consideration. In December 2016, Apple Music announced that it had over 20 million paid subscribers, less than half of Spotify’s subscriber count. Apple Music has, however, achieved these figures in the 18 months since its launch.

Apple had ~13 million subscribers in April 2016, 15 million in June 2016, and 17 million in September 2016.

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Streaming services drove music revenue in 2016

Retail music revenue rose 11% YoY (year-over-year) in 2016, primarily driven by the rising popularity of subscription music streaming services such as Spotify and Apple Music. A report by the Recording Industry Association of America (or RIAA) stated that music retail revenue in the United States had risen 11.4% YoY to $7.7 billion in 2016.

While streaming services accounted for 51.4% of revenue, ad-supported music and streaming platforms such as YouTube (GOOG) (GOOGL) also contributed to this growth.

Streaming services accounted for $3.9 billion in revenue in 2016, a rise of 68% YoY.

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