Spotify and Apple Music are the world’s most popular music streaming services, but only one of them continues showing dominance in the battle.
In its latest earnings report, Spotify posted tremendous improvements in a handful of areas. The user base continues growing on both sides, drawing the business near profitability less than a year after going public. Spotify has more than 191 million monthly active users, and there are 87 million paid subscribers who generate most of the revenue.
Both figures are up year-over-year. In fact, Spotify’s 87 million subscribers represent a 40 percent jump compared to last year. The entire user base, meanwhile, grew 28% from the year before.
During Q3 2018, Spotify made $1.54 billion in revenue. Streaming services are typically capital-intensive, but Spotify figured out a balance to earn money and keep investors happy.
No one should be concerned about Spotify’s $6.8 operating loss. It’s so minuscule, and there should be enough revenue growth in the coming months that Spotify turns a profit. Spotify just needs to attract more paid subscribers and ad-supported users. Most of the revenue comes from paid subscribers rather than users who sit through advertisements.
Apple Music, on the other hand, trails behind Spotify with 44 million subscribers globally. Apple’s alternative has a lead in the United States, though.
The battle between these two services isn’t anywhere close to over. Spotify widened its lead around the world, but Apple Music’s starting to catch fire in the U.S. where consumers are highly coveted. As we head into 2019, Spotify says it’ll target artist relations and non-music content for long-term gains.