Investment firm Loup Ventures keeps a close eye on Apple’s business, including its music activity. Now it has put out some estimates for Apple Music’s progress.
“Apple Music has room to grow with 82m subs out of 980m active iPhone users (8%) paying for the service,” wrote managing partner Gene Munster in a blog post. “We estimate the average Apple Music subscriber is paying about $7.00 per month, which equates to about $6.8B in revenue this year, or 2.5% of total revenue.”
Munster also claimed that Apple Music is “converting potential customers into paying customers at a rate 2.5x faster than Spotify”.
Our first reaction is to question a comparison between two services with different approaches to their free tiers (limited trial only for Apple Music, a full free tier for Spotify) but the blog post sets out Munster’s workings.
He also suggested that Spotify currently has 34% of global music subscribers compared to 20% for Apple Music. That’s not far off other estimates: for example, Midia Research claimed earlier this year that Spotify had a 32% share of global subscribers at the end of March, and Apple Music 18%. Counterpoint Research, meanwhile, pegs the pair at 33% and 21% respectively.