Pandora has been leading in the US for years
Pandora, which is now a part of Sirius XM (SIRI), is currently the most popular music streaming platform in the US. However, according to a report by eMarketer, Spotify (SPOT) is catching up and could leapfrog Pandora as the most popular music streaming service in the US by 2021 in terms of monthly active users. Spotify already has many more subscribers than Pandora, which has a very low subscriber to user base ratio.
Spotify’s user base in the US continues to see decent growth
While Pandora’s user base growth is beginning to shrink, Spotify’s user base in the US is still seeing solid growth. eMarketer estimates that Pandora will have 72.4 million users in the US this year, a 0.5% annual decline. Meanwhile, Spotify is estimated to have 65.3 million users in the US, a 14% increase from 2018.
However, Apple (AAPL) is fourth on the list, as it operates on a subscription-only model. Apple Music is estimated to have 33.4 million listeners this year, a jump of over 17% from the previous year. Meanwhile, Amazon (AMZN) Music, which is in the third spot, is expected to have 35.8 million users this year, which would represent an increase of nearly 18% from 2018.
Spotify had 96 million paying subscribers globally at the end of 2018 and continues to see strong growth in its subscriber base, which is driving its revenue growth. The company recently launched its service in India and had one million users within one week of its launch.