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
