Spotify today reported its second-quarter numbers where it revealed that it now has 180 million subscribers. Out of this, the company has 83 million paid subscribers, up 40 percent on a yearly basis and an increase of nearly 8 million from the last quarter.
Apart from the 83 million paid subscribers, the streaming music service now has 97 million free subscribers. Overall, the company reported a 5.9 percent quarterly increase in its subscribers despite adding fewer subscribers than the previous quarter. The company expects to add anywhere between 8 to 13 million subscribers in Q3, 2018.
For comparison, Apple Music has over 40 million subscribers, with the Cupertino company’s offering having just a wee bit more paid subscribers in the United States. Spotify says that it has roughly around 25 million free and paid subscribers in the US.
While Spotify added quite a few million users, that growth came at a heavy cost. It saw its average revenue drop by over 12 percent per user and posted a net loss of €394 million. This points to the music streaming service still being quite some time away from posting a profit.
While Apple does not break down its profit (or loss) margins for Apple Music, the company likely makes more money off its subscribers since unlike Spotify, it does not offer a free ad-supported streaming tier. Instead, it offers a three-month trial to its users after which they are required to subscribe to the music streaming service.
Apple is relying heavily on offering exclusive content on Apple Music down the line to attract new subscribers. It already has a higher growth rate than Spotify in the United States and once it starts expanding its exclusive content directory, it is bound to become the most popular paid music streaming service in the region.
Which music streaming service do you prefer? Spotify or Apple Music?