The prediction is based on Apple Music's reported monthly growth rate of 5%, which significantly outstrips Spotify's 2% growth rate. In comparison, Apple appears to only have 36 million, but a lot of those are based in the USA, which is the largest music streaming market in the world. Ten-year-old Spotify, by contrast, only has a two percent monthly growth rate. In fact, if the subscribers still on the free three-month trial period are taken into account, it already has more subscribers compared to Spotify. As per a report in the Wall Street Journal, Apple's music service is gaining higher rate in the United States.
Watch out Spotify, Apple is coming for you. New HomePod speaker ahead of its release next week might also add up the subscribers to Apple Music.
The sources add that Apple Music already has a slight edge on Spotify in the United States when people who are on free trials are taken into account.
At the same time Spotify which has been valued at as much as $19 billion a year ago, goes ahead with its plans, it would make it the first major company to carry out a direct listing, an unconventional way to pursue an IPO without raising new capital. By this summer, Apple will likely close the gap in subscriber numbers completely.
Thankfully for Spotify, the U.S.is not representative of the entire picture.
This investment tactic is common for smaller companies, but Spotify would be the largest direct listing ever. In addition to this, the Apple Music numbers are gradually catching up with the giants of the industry such as Spotify.