Spotify about to surpass iTunes’s revenue in Europe
Surely Apple re-invented digital music, and the whole market behind it with the iPod and iTunes, but exactly how long did you think its success would last. The company was reluctant to adopt music subscription services for years, mainly because Steve Jobs never believed in it. Obviously those times were different, data speeds were as well, and now that Apple launched iTunes Radio, it’s clear that there is some pressure.
Spotify has just confirmed that it is approaching 10 million paid subscribers, and out of these 1 million were gained in the past four months with its recent partnerships with Vodaphone and the Sunday Times. According to the statement:
“Some of our partners are saying Spotify is now generating more revenue each month across Continental Europe than iTunes,” Spotify’s head of label relations in Europe, Kevin Brown, told industry site Music Week.
“Given that download sales are declining and Spotify is growing rapidly, particularly in the UK, it is only a matter of time before Spotify is bigger than iTunes across Europe as a whole.”
At the moment Spotify has 24 million users, and 6 million of these are paid. Once it surpasses the 10 million mark, it will defeat iTunes in Europe. Let’s see what Apple pulls up its sleeve when this happens.