The business war in the music streaming service is unstoppable. Spotify by far is the best music streaming platform in the world with 345 million users (155 million paid users) as compared to the second best Apple music has 72 million users. YouTube music has stepped into the music streaming industry having 30 million users.
The Spotify is best so far because of its amazing playlist collection giving the best experience. But Spotify struggles to become profitable. And now with big giants such as Google and Apple entering the market the journey of Spotify is going to be further challenging.
Spotify so far is using the Freemium model where the music is available for free but ads are shown to make revenue. The problem why Spotify is not able to become profitable is because the revenue earned from ads is simply not enough and there are not enough subscription paid users.
Looking at the weakness and challenges that Spotify is facing; in 2015, Apple announced the launch of Apple Music and YouTube launched YouTube music after 5 months of its announcement by Apple which is a direct competition to Spotify.
YouTube is already a go-to platform for searching songs, and lyrics and is available on both android and ios. With the majority of smartphone users already having a YouTube app installed, can YouTube win this music streaming war and emerge as the market leader in this space as well?