Report: Apple Music's Churn Rate Three Times That Of Spotify
July 6, 2016 at 12:21 PM (PT)
Wondering why the rumor mill has APPLE MUSIC kicking the tires for a possible acquisition of JAY Z's celebrity-heavy TIDAL?
A report in BUSINESS INSIDER cites new research from the respected firm of COWEN that APPLE MUSIC subscribers are churning at a rate of 6.4% per month, which is almost three times that of its rival SPOTIFY.
SPOTIFY has 30 million paid subscribers compared to APPLE MUSIC's 15 million, and while the latter has been picking up its rate of signing on new users, it's also losing them at a quicker pace.
Can an association with the star power of JAY Z and the lure of exclusives change APPLE MUSIC's fortunes? It hasn't done the trick so far, even with much-ballyhooed exclusives such as DRAKE's huge "Visions."
In a music business where streaming has taken the lead from both digital downloads and physical CD sales, that's no small difference.