Apple Music Surpasses Spotify In U.S. Paid Subscriptions

Apple Music gets price cut in India

After a report conducted in February, it was revealed that in the United States, Apple Music has surpassed Spotify in paid users.

Earlier today, The Wall Street Journal reported that Apple Music has surpassed Spotify in the number of paid USA subscriptions.

Spotify still wears the crown for most subscribers globally with 96 million paid users and 111 million unpaid subscribers for a total of 207 million active users, according to its earnings for the three-month period ending on December 31.

Both companies charge $9.99 a month for subscriptions, though Spotify still has more total US listeners than an Apple thanks to an ad-supported free tier of its service with fewer features.

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Apple hit back with a statement claiming that Spotify is trashing Apple's App Store it used to become the top streaming music company. It's cheaper, however, if availed on the annual plan worth Rs 999 per year. The company has a base of about 101 million active iPhones in the US, according to Strategy Analytics, a market research firm.

On a global scale, however, Spotify is still well ahead of Apple. Apple CEO Tim Cook publicly disclosed that Apple Music had passed the 50 million milestone in May.

Apple's streaming service is part of a broader push at the company to make money off subscriptions and services as iPhone sales slow.

But more importantly, with the revised plans, Apple Music will now have an upper hand over Swedish audio streaming platform, Spotify. Costs associated with paying labels, publishers and artists means the service has a gross margin of roughly 15%, the lowest of any of Apple's services, according to RBC Capital Markets.

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