Apple Surpasses Streaming Giant Spotify

“The worlds most famous and popular language is music” – Psy

As of this week, Apple Music has surpassed Spotify’s paid subscriber count in the United States, making it the number one streaming service in the country. According to Digital Music News, Apple music, with a growth rate of 5% and over 20 million U.S. subscribers, is growing faster than Spotify. However, Spotify still holds the reign worldwide with over 70 million subscribers compared to Apples 45 million.

This is a big win for Apple, but it will be hard to get a global win on Spotify. The majority of iPhone users reside in the United States, so it is easier for them to use Apple Music since it is built into iOS. That being said, Spotify has an advantage on Apple due to it’s free streaming feature. Although they have to listen to ads, Spotify has 170 million users with the inclusion of those who stream for free.

(Source: Gear Patrol)

Apple does have an advantage over Spotify in a couple areas. For starters, Apple Music has 10 million more songs than Spotify. Also, being that Apple is such a giant company, it is easier for them to snatch exclusive albums. For example, Dr Dre’s highly anticipated album, Compton, was only available to be streamed on Apple Music upon release. As Apple releases more exclusive content, it will bring more Spotify users over. Also, with Apple’s upcoming video streaming service, there is rumored to be a package that combines both the music and video services, another source of new users.

To better compare the two, rap star Drake released an album on both streaming services. Spotify advertised the album like crazy, placing the rapper into virtually all their playlists. Unfortunately, their efforts did not pay off as Apple Music users streamed his album, Scorpion, 170 million times to Spotify’s 130 million in the first 24 hours of release. So, although Spotify has more subscribers, they seem to be less engaged with the content.

AAPL up past week, beating the DOW by 1%.

AAPL & DOW (Source: Yahoo Finance)

Apple Stock News: Possible Acquisitions Pushing Apple Revenue Forward

Apple Stock News

For the latest Apple Stock News, AAPL closed at $116.02 on Wednesday, January 4, 2017 with a -0.11% loss, or -$0.13 from its previous close of $116.15 per share.

Apple Stock News

It’s no secret that Apple needs to break further into the software and services sector as described in this article. There has been talk about Apple doing just that and may purchase Sirius XM Holdings Inc. Sirius is also possibly going to buyout Pandora Media Inc. which Apple would inherit if the rumors are true. This would be an extremely beneficial move for the company as the subscription services on Spotify and Pandora would boost revenue as well as provide a steady stream for years to come.

The revenue from these possible buyouts would put Apple into a more secure position, being that iPhone sales have not been as exciting as it used to be. Service revenue generally doesn’t shift as much as hardware revenue. Sirius and Pandora were both very successful in Q3 as Sirius and Pandora earning $1.3 billion and $351.9 million respectively. If Apple were to acquire them before Q3 of 2016, the revenue would equate to a 25% increase in their quarterly revenue. If not for the increase in revenue, Apple would be able to dominate the music streaming sector, effectively engulfing two of their larger competitors. This buyout is a move Apple should seriously consider.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.