Apple hits 38 million paying subscribers to Apple Music; update on the "Race to $1 trillion"

Apple announced today that it now has 38 million paying subscribers for its streaming music app, Apple Music. That is a pick up of 2 million new subscribers, or 5.6%, since February. The leading streaming music provider remains Spotify, which has 71 million paid customers for its premium service. Apple's senior vice president of internet software and services, Eddy Cue, passed along the latest stats at the annual SXSW in Austin, Texas. Apple Music launched on June 30, 2015. Spotify had a huge head start as it debuted October 7th, 2008.

Unlike Spotify, Apple offers a three-month free trial before subscribers are hit with a $9.99 monthly subscription fee. Families with up to 6 users can subscribe for $14.99 per month. Spotify offers a free tier of service that is supported by ads. The premium version of Spotify gives users unlimited skips, and allows them to listen to music while off-line. Like Apple Music, Spotify's premium service is also priced at $9.99 per month.

Spotify recently announced that it will soon go public as it has filed for an IPO under the stock symbol SPOT. Speaking of the stock market, the other day we told you that Apple and Amazon are in a race to be the first company valued at $1 trillion. Apple had a pretty large margin over the Alexa creator, but based on recent trends, Amazon would actually be first to hit the mark in August with Apple joining the club a week later.

Here is a quick update on the "Race to One Trillion." Apple set an all-time high today with a 1% gain to $181.72. The company is the first to achieve a valuation over $900 billion. According to Yahoo Finance, Apple is now worth $922 billion, leaving it $78 billion, or 8.5% shy of $1 trillion. Apple needs another push of $15.44 to $197.16 to make more history. While Google parent Alphabet is actually the second largest company in the U.S. with a market cap (shares outstanding multiplied by stock price) of $810 billion, its rise has been slower than Amazon's which is why analysts have not included Alphabet in this race. Amazon is currently valued at $774 billion. Microsoft is next at $745 billion.

source: Reuters



5. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

Considering it comes pre-installed in every single iPhone with free trial, for 2 years now that means half a billion devices had it on with great free trial and it managed to grab 1/13 out of them isn't anything for Spotify to worry about when Spotify has a potential of 1 billion Android users(for distant future) considering most of Android users arent going to touch anything Apple(in terms of apps) let alone Apple music. Spotify with its free mode has a tremendous worldwide potential and not just a small iOS potential. Not only that Apple keeps re-working its mediocre app meanwhile Spotify has almost perfected its app and is miles ahead. Investors are going to keep throwing billions at Spotify no matter how long it takes for it to be profitable, cause it has a potential that no other streaming music app has.

9. whatev

Posts: 2333; Member since: Oct 28, 2015

Keep telling that to yourself, maybe you will sleep better

15. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

Great constructive reply as usual.

18. whatev

Posts: 2333; Member since: Oct 28, 2015

Thanks, it corresponds to your great constructive comment

10. midan

Posts: 3019; Member since: Oct 09, 2017

Apple music in play store have downloads between 10-50 million. That's huge. Most people have rated it 5 star app in play store, you know the android users.

14. Marcwand3l

Posts: 446; Member since: May 08, 2017

Apple Music has a mediocre 3.5 rating in Play Store and haft of the people that downloaded it gave it 1 star. Most Android Users downloaded it for the free trial. I see no reason to use Apple Music instead of Spotify especially when the app itself is worse that Spotify(which runs smoother and has a better design that apple music).

17. midan

Posts: 3019; Member since: Oct 09, 2017

"haft of the people that downloaded it gave it 1 star." It wasn't half also haters are really sad, those 1 star ratings mostly came right away when the app went to play store. It was on news too, Clearly users like the app and service because half of the votes voted it 5 star app.

6. nazyr1803

Posts: 100; Member since: Jan 11, 2013

In Malaysia, we just got the student price. I'm using apple music as it is already pre-installed.

7. CreeDiddy

Posts: 2255; Member since: Nov 04, 2011

Well so far Apple is on fire...I can see Apple doubling their subscriptions by 2019. I can see them with at least 85 million this time next year. One problem with Spotify is that they don't a have product that is attached to their services. They are reliant on iOS and Android subscribers to push their services. I can see Spotify growing, but not at the clip of Apple. Apple can invest way more into Apple Music and provide more advantages for artists to continue to promote Apple's products.

11. midan

Posts: 3019; Member since: Oct 09, 2017

These 38 million are lost customers for spotify Spotify never couldn't make their business profitable and the future definately doesn't look bright. I wonder when Spotify have to kill the free version of spotify.

16. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

Same was said for amazon, 10 years unprofitable, billions thrown at them and all lost down the drain. But hey everyone who invested knew that, and everyone was smart, cause if you have that huge future potential you keep loosing money until you dont cause after you will be making the really serious amounts of money. The big cable companies were laughing at Netflix at some point. Pretty sure its the other way around now. I am not saying Apple music will do badly, its going to be great for Apple. But spotify is going to be the Amazon of online music streaming.

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