Spotify is enjoying a spectacular success. The famous company has revealed that it has just hit its 100 million-user mark. Without a doubt, this is amazing news for the streaming media company. And it definitely is not good at all for Apple.
The impressive number of users that Spotify currently has gives it the leading position when it comes to music streaming. Spotify has a total of 100 million users, but it also has more than 30 million users that pay for this service.
Reaching a greater number of users on its free service is amazing for Spotify. The famous company’s business model actually relies on attracting users on its services to later convince them into paying for the subscription.
This means that despite the number of competitors on the market, Spotify has managed to remain on top. And the competition to Spotify is actually coming from major companies, including Apple and Google. Even Amazon might release something on this market. Amazon is said to be working at its own standalone music service.
However, the competition might be good for Spotify after all. Some analysts have been claiming that since the release of the Apple Music, Spotify has experienced an impressive growth. Furthermore, some have said that Spotify has been making more money since the launch of the Apple Music service.
Still, this does not mean that Spotify does not have to worry about the competition. Apple Music has been released about a year ago and it already has 15 million paid subscribers. On the other hand, the Amazon Music service is free to all Amazon Prime subscribers. Google Music is not providing paid subscriber numbers for the moment. The main rival that Spotify currently has is Pandora.
How Spotify plans to maintain its success on the market is something yet to be discovered. Furthermore, how Apple will react will also be interesting to find out. Actually, Apple needs to find a way to improve its success on this market. Thus, the fight on the music streaming market could become greater in the future and customers could surely benefit from this.