Move over Apple, Spotify continues to reign in the music streaming realm.
This is double the current number of subscribers.
"The music industry is shifting from a transactional to on-demand model, and Spotify is well positioned to double its subscriber base, expand gross margin, and generate material free cash flow," wrote Patterson back in May. It has "one of the best growth rates in tech – there is a scarcity of companies poised for 40 percent annual profit growth through 2019."
Apple launched Apple Music, a streaming service in 2015 for $10 a month to compete with Spotify and other music streaming services like Pandora. But Patterson doesn't anticipate that Apple will be able to overtake Spotify in the music category.
"We doubt Apple ever overtakes Spotify ever in music," said Patterson. "Rather, the risk is that Apple slows Spotify's growth in markets where iOS devices have large installed bases."
Although Apple and Amazon are both ahead of the game when it comes to on-demand video content and podcast, Spotify has been aggressively collecting this type of content.
With its massive subscriber database, Spotify could quickly emerge as a strong competitor in this space.Read More