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Apple Music versus Spotify
Apple Music has reached 100 million subscribers (including free trial users), but lags behind Spotify, which had 263 million paying subscribers as of 31 December and is solidly profitable, with a gross margin of 32% last quarter. Apple Music, on the other hand, has a 'single-digit percentage' gross margin. The US accounted for 39% of Spotify's revenues last year, a figure close to Netflix's 41%, which remains a significant benchmark. In other words, Spotify even thrives in Apple's home territory.
Source : Technicisms
