How Apple Music Will Impact The $8.5 Billion Spotify

Music streaming service Spotify was valued at $8.5 billion in its latest round of funding based on the number of users it has attracted overtime. However, with Apple Inc. AAPL launching its own music streaming service, Apple Music, how will Spotify’s user growth be impacted?

Brett Molina, tech reporter at USA Today, was on CNBC Wednesday to answer that question.

Challenge For Apple

“I think Spotify is going to be just fine,” Molina said. “They are really entrenched in the streaming music space, they have doubled the number of paid users. They also nearly doubled the number of regular users from 40 million to 75 million.”

He continued, “So, they have been growing really quickly and again they have been entrenched in the music streaming business for a while now and I think unless Apple brings something to the table that’s very different and unique, I think, it’s going to be a challenge for them to challenge Spotify.”

Apple’s Advantages

Molina was asked the possible advantages that Apple Music will have when it launches. He replied,“I think the biggest thing will be, it will be a native app on the iPhone and millions of people have the iPhone now that it will be right there in front of them and it will be very easy for them to access and check out. Also they are offering a free trial of this service as well.”

“So, it will be very easy for the people who are curious to just explore and get an idea of what the service is, so to have that many people see the app in front of them is going to be huge for Apple. And also, I mean, they are just so great at marketing their products and that’s going to be something we are going to see ramp up I am sure over the next couple of months,” Molina concluded.