Monday, October 15, 2018

Stream Wars: Spotify and Apple Music in 2018

Author: Jakob Viertel
References:

  • https://www.digitaltrends.com/music/apple-music-vs-spotify/
  • https://en.wikipedia.org/wiki/Spotify#User_growth
  • https://en.wikipedia.org/wiki/Apple_Music#User_growth
  • https://knowtechie.com/apple-music-bests-spotify/



Stream Wars: Spotify and Apple Music in 2018

It's hard to deny that the way people consume their music of choice has changed more in the last decade than almost any other point in human history. Most recently, advances in data transmission and smartphone technology have allowed for the relatively cheap consumption of music on demand via the internet, or what we refer to today as  'Music Streaming'. The sun rises and sets, birds lay eggs, and multi-billion dollar tech companies prepare for battle with each other when technological advances present a new way for them to make a quick buck. Music streaming has most definitely not been an exception this.

This particular multi-billion dollar tech company rumble saw it's beginning, in my humble opinion, over ten years ago when Spotify launched in September 2008, allowing for on music consumption on demand by both free and paying users. Fast forward nine years to 2015 and Spotify had something close to a monopoly on the streaming market, with over 75 million users and no competition worth mentioning. However June 2015 saw the launch of Apple's streaming service 'Apple Music', the next multi-billion dollar (trillion dollar as of this year) horse in the very lucrative race for subscribers and market share.

As of October 2018, Apple Music has over 50 million subscribers while Spotify has over 180 million users, of which, about 83 million are paying subscribers. While Spotify has the obvious advantage of a non-paid tier with ads in terms of attracting new customers, Apple Music has been relying on its wider range of music (45 million songs vs Spotify's 35 million) to gain market share, and with Apple music being projected to over take Spotify in the US for paid subscriber count, it looks like Apple may be on the right track. It remains to be seen whether a new streaming platform with the clout to challenge the music streaming duopoly can emerge, or if another technological advance can disrupt music streaming as a whole. One thing is for certain, Apple and Spotify will be hashing it out for the next few years for those precious paid subscribers and a spot on all of our smartphone homescreens.    





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