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Not enough people talking about this: The fundamental challenge for Spotify is they have to make money while Apple Music doesn't. Apple Music can run break-eve
by abalone 9y ago
Not enough people talking about this: The fundamental challenge for Spotify is they have to make money while Apple Music doesn't.
Apple Music can run break-even as a platform feature, like the App Store was (at least in the early days). Or they could pay artists more with that margin and get more exclusives. Either way, it's a fundamental long term competitive disadvantage for Spotify.
- vlunkr 9y agoI know it’s just an acecdote, but I don’t know a single person that uses Apple Music. Spotify already has a huge library and mindshare. It was too little too late for Apple IMO
- abalone 9y agoWhich is why you should never draw conclusions from anecdotes.[1] [1] Apple Music is set to surpass Spotify in paid US subscribers this summer https://www.theverge.com/2018/2/4/16971436/apple-music-surpass-spotify-us-subscribers https://www.theverge.com/2018/2/4/16971436/apple-music-surpa...
- pertsix 9y agoMost of these users are converting from their shrinking iTunes business.
- abalone 9y agoSo what’s your point? Apple Music is still overtaking Spotify this year. And just like iTunes, they don’t need to make much money on it.
- KozmoNau7 9y agoOnly in the US, Spotify is huge in Europe and other parts of the world, where Apple Music is basically unknown.
- abalone 9y agoSpotify is actually small in the world. All music service subscribers combined are a mere ~110 million. Eddy Cue recent pegged the market opportunity at 2 billion.[1] And Apple Music ramping the fastest.[2] [1] https://www.cnet.com/news/apple-music-hits-38-million-subscribers/ https://www.cnet.com/news/apple-music-hits-38-million-subscr... [2] https://twitter.com/asymco/status/973568200616050688?ref_src=twsrc%5Etfw https://twitter.com/asymco/status/973568200616050688?ref_src...
- KozmoNau7 9y agoComparing Spotify to other streaming services, obviously. Apple music is basically a no-show in Europe and Asia. And those numbers are only paid subs. Spotify has a ton of free, ad-listening users.