Before the launch of the Apple Music streaming service in June, there had been rumors circulating that Spotify’s dominance in the streaming market was over. However, it seems that instead of turning out to be a Spotify killer, Apple Music has created an even greater global market for Spotify as the service has added more customers since the expansion of the tech giant into music streaming.
Daniel Ek, the Chief Executive Officer said the idea that Apple Music would kill Spotify was overblown and he said that the London-based firm is witnessing even greater traction with music listeners than before, even though he refused to give specific numbers about the increase in customers. He said that they were setting new records on a weekly basis.
With 20 million paid subscribers, Spotify is the largest music streaming service in the world, which charges $9.99 from its subscribers in the US to give them access to as much music as they want. The same price will be charged by Apple Music from its customers eventually, when the free three-month trial offered by the company is over. Apple had held the position of the largest music retailer in the world. It reached here by using its iTunes service for selling individual songs online. However, music streaming is becoming the next big thing, which means that sales from downloads are at an all-time low.
As a matter of fact, it has been predicted by experts that revenue from music streaming would surpass sales from downloads next year. Spotify’s CEO said that partnerships of the service with wireless carriers is of the utmost importance for expanding its user base. Currently, the company has made 40 partnerships with wireless carriers all over the world and it is planning to add more to its arsenal for continuing its expansion.
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