Spotify’s third fiscal quarter figures show that it is growing considerably faster than Apple Music.
“We continue to feel very good about our competitive position in the market,” the streaming giant noted in a statement. “Relative to Apple, the publicly available data shows that we are adding roughly twice as many subscribers per month as they are. Additionally, we believe that our monthly engagement is roughly 2x as high and our churn is at half the rate.”
In all, Spotify’s Q3 results are very good for the company. It “met or exceeded” expectations with better than expected subscriber growth, gross margins, and operating profit. Total monthly active subscribers grew 30% year-over-year to hit 248 million.
The number of monthly premium subscribers is up 31% to 113 million. This was strongly helped by growth in the Family Plan and Student Plan.
Spotify has introduced a number of features to boost adoption. These include a Family Mix playlist with personalized songs for the whole family, an AT&T partnership to offer Spotify Premium as an add-on, and a new 90-day free trial. “We believe the 90-day offering will have positive benefit to growth and retention moving forward,” the company noted.
Spotify versus Apple Music (and the rest)
Last time Apple released subscriber figures for Apple Music, it reported upward of 60 million Apple Music subscribers worldwide. Unlike Spotify, Apple Music doesn’t have a free listening tier. The two companies are the two leaders in the streaming music game.
However, Amazon is also making advances in this area, too. Spotify mentions Amazon in its report. It writes that, “our estimates imply that we continue to add more users on an absolute basis than Amazon. Our data also suggests that Amazon’s user base skews significantly more to ‘Ad-Supported’ than ‘Premium’, and that average engagement on our platform is approximately 3x.”
Which streaming music service, if any, do you subscribe to? Let us know in the comments below.
Source: BusinessWire
