In this article, we show that magnitude homology and path homology are closely related, and we give some applications. We define differentialsbetween magnitude homologies of a digraph G, which make them chain complexes. Then we show that its homology MH ℓ k (G) is non-trivial and homotopy invariant in the context of 'homotopy theory of digraphs' developed by Grigor'yan-Muranov-S.-T. Yau et al (G-M-Ys in the following). It is remarkable that the diagonal part of our homology MH k k (G) is isomorphic to the reduced path homology Hk (G) also introduced by G-M-Ys. Further, we construct a spectral sequence whose first page is isomorphic to magnitude homology MH ℓ k (G), and the second page is isomorphic to our homology MH ℓ k (G). As an application, we show that the diagonality of magnitude homology implies triviality of reduced path homology. We also show that Hk (g) = 0 for k ≥ 2 and H1(g) = 0 if any edges of an undirected graph g is contained in a cycle of length ≥ 5.