Spotify may have had a multi-year head start on Apple Music, but Apple’s own streaming service appears to be growing at a faster rate these days. In fact, some analysts are projecting that Apple Music may boast more paid subscribers than Spotify in just a few months.
As for where each respective service currently stands, Apple earlier this month disclosed that there are now 36 million subscribers on Apple Music. Spotify, meanwhile, recently revealed that it has 71 million paying subscribers and a cumulative total of 159 million active users. Remember, Spotify offers users an ad-supported tier whereas Apple Music is strictly a subscription service.
With Spotify’s IPO looming, the company today revealed a few interesting tidbits about its user base and financial prospects in the months ahead. Notably, Spotify anticipates that by the end of 2018 it will have anywhere from 92-96 million paid subscribers and upwards of 208 million active users.
Incidentally, Spotify also revealed that its official tally of paid subscribers may be as high as 76 million by the time the March quarter draws to a close.
Interestingly enough, Spotify’s definition of what constitutes a premium subscriber includes all users who happen to fall under a single family plan.
We define Premium Subscribers as users that have completed registration with Spotify and have activated a payment method for a premium service. Our Premium Subscribers include all registered accounts in our Family Plan. Our Family Plan consists of one primary subscriber and up to five additional sub-accounts, allowing up to six Premium Subscribers per Family Plan subscription. Premium Subscribers include subscribers who are within a grace period of up to 30 days after failing to pay their subscription fee.
As far as Spotify’s financial future is concerned, the company anticipates that its revenue for 2018 will fall somewhere in the $6.1 billion to $6.5 billion range. Still, Spotify isn’t expecting to be profitable for the year, with the company noting that it will likely see an operating loss in the $286 million to $409 million range.