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Insight of the Day: Over 40% of Apple Customers Subscribe to Apple Music

The article highlights a recent study indicating that over 40% of Apple customers subscribe to Apple Music, which is a significant portion compared to Spotify's paid subscriber share. This finding comes amidst an ongoing Justice Department antitrust lawsuit against Apple, which accuses the company of anti-competitive behavior in the smartphone market, including alleged leveraging of its App Store to disadvantage third-party developers.

Spotify has long voiced similar complaints regarding the treatment of its app updates and the 30% commission charged by Apple, and similar concerns have led to legal action in the EU. Despite these challenges, Spotify's efforts to push for legislative changes in the US have yet to yield significant results.

The study's findings suggest that Apple Music's popularity among Apple customers could be seen as a potential platform advantage for Apple. However, it's worth noting that Apple Music doesn't have an ad-supported tier, unlike Spotify, and offers additional features such as spatial audio and access to Apple Music Classical.

Interestingly, the advantage of Apple Music usage doesn't extend to Android devices, where Spotify reportedly has more favorable terms due to deals with Google. Google has also faced legal scrutiny over alleged monopolistic practices related to its Play Store, including a recent settlement with state attorneys general.

Additionally, there's ongoing litigation against Apple related to its App Store practices, including allegations of monopolization and anticompetitive behavior. Overall, the findings of the study add to the broader conversation surrounding platform advantage and antitrust concerns in the tech industry.

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