Music Business

BIG Trouble Ahead For #Apple: Users Leave Apple Music 3X Faster Than They Do Spotify

fish Apple Music has a problem with users dropping the service.  It's called their churn rate – "the annual percentage rate at which customers stop subscribing to a service" – and Apple Music's is three times that of Spotify.


Apple Music has a churn rate of 6.4% per month, according to a new study by analysts Cowen.  That's three times the churn rate of Spotify in the same sampling. This is very bad news for Apple, as its music service with 15 million paid subscribers is fighting to catch up to Spotify's 30 million paid.

Apple - SpotifyThe Gap Is Widening

Think of it this way: If Apple Music added 10 million new subscribers in the next 12 months, it could also lose almost 7.7 million, if the current churn rate holds, for a net gain of just 2.3 million. If Spotify adds 10 million new users in 12 months, it would grow by 7.3 million paid subscribers, widening the gap between the two competitors.

Perhaps, this is why Apple is reportedly eyeing an acquisition of Tidal.

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  1. “This is very bad news for Apple, as its music service with 15 million paid subscribers is fighting to catch up to Spotify’s 30 million paid.”
    But then again Spotify had 6 years to get to 30 million paid accounts, while Apple got 15 millions in less than a year. You can’t expect Apple to get the same amount of subscribers on opening day..

  2. That’s great news! Watching all those millions of people abandoning all paying streaming services is very encouraging.
    There is so much free, beautiful, and legal music these days. Music is free and always will (like all other services in the future).

  3. Uh, no. This is not an apples to apples comparison (no pun intended). People who drop their Spotify subscriptions go back to free. With Apple Music, there’s no free to go back to. This is like comparing the churn rates of Hulu and Netflix; it means nothing.

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