Apple Music subscribers increased significantly
Apple Music (AAPL) subscribers have reached 50.0 million, up from 30.0 million in October 2017. This includes paid members as well as users on membership trials. Apple Music expects to reach 60.0 million subscribers by the end of 2018. Apple Music subscribers have increased significantly from 13.0 million in April 2016 and ended 2016 with 20.0 million subscribers.
During Apple’s fiscal Q2 2018 earnings call, CEO Tim Cook stated, “The App Store set a new all-time revenue record in the March quarter and Apple Music reached a new record for both revenue and paid subscribers, which have now passed 40 million.”
Apple Music competes with Pandora and Spotify
Spotify (SPOT) is the global leader in the music streaming industry. SPOT has 75.0 million subscribers, and it recently announced revenues of ~$1.4 billion in the first quarter of 2018 for year-over-year growth of 26.0%.
Pandora (P) has launched a Premium Family Plan, which allows six users to have individual accounts for $14.99 per month or $164.89 per year. The global music streaming industry is estimated to grow at a CAGR (compound annual growth rate) of 8.2% from 2017 to 2022, providing an opportunity for the three major players to drive revenues. Revenues are expected to rise from $8.4 billion in 2017 to $12.4 billion in 2022. The United States accounts for more than 50.0% of total music streaming revenues.