Gene Munster: Apple Converts Paying Music Customers Far Better Than Spotify Does
Apple was able to recently become the top dog in the U.S., wrestling the title away from its Swedish rival. While Apple CEO Tim Cook has tried to reframe the narrative around the overall market growing, investors are still keenly interested in how the two companies are faring against each other. iOS users tend to have more disposable income than Android users, and Apple is able to better integrate Apple Music throughout the platform, which not only makes for a "seamlessly integrated music experience," but also allows Apple ample opportunities to nudge users to sign up. Munster estimates that Apple now has 21 million Apple Music subscribers in the U.S., compared to Spotify's estimated 20 million. Globally, Spotify is still in the lead by a significant margin, with 62% market share towering over Apple's 34% share. But if you look at those market shares directionally, Apple is steadily chipping away: Spotify has lost about 3 percentage points over the past year, while Apple has added 4 percentage points.