28 million US subscribers
Apple (AAPL) has not revealed the subscriber count for its music service, Apple Music, for some time. We do know that its competitor, Spotify (SPOT), had 96 million subscribers globally at the end of last year.
According to The Wall Street Journal, Apple Music has surpassed Spotify in terms of paid subscribers in the United States, the biggest music market. Apple Music reportedly now has 28 million US subscribers, while Spotify has 26 million.
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Spotify still has the lead
The Wall Street Journal also reported that while Apple Music is growing at a faster clip than Spotify, Spotify is still ahead of Apple Music globally. In contrast to Apple Music, Spotify has free, ad-based users.
Apple Music’s success suggests that its user base could embrace the slew of other services Apple unveiled last month, which included a video streaming service. However, whereas these services could boost Apple’s top line, they are not expected to be very lucrative. The Wall Street Journal pointed out that Apple Music only has a gross margin of 15%, smaller than Apple’s other service margins and Spotify’s.
Apple’s upcoming video streaming service could draw a lot of subscribers. However, the company will have to spend billions to have the range of content Netflix has.