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0 pointsk-mcgrady9y ago0 comments

>> "Maybe but I think it was a strategy. Spotify wanted to grab attention with this. The origin of the issue is really the fact that Apple is not releasing the 30% tax. This is unsustainable in the music business where there is close to 0 margin."

I definitely agree it was a strategy. No way Spotify thought they would get away with that, it's a PR exercise. The issue isn't Apple's 30% though - it's Spotify's business model. Apple charges all publishers the same flat rate. If you can't sustain your business on it either leave the App Store or force your users to register through your website. I can see how it sucks for Spotify but it is not unfair in my opinion (unless Apple had a monopoly on streaming music, then it would be anticompetitive but for now it's an advantage they have and should be free to use).

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rloc9y ago

Unfortunately in the music business there is only one business model. The one the labels command (with very minor differences between each service). Apple business model for streaming is the same than the spotify one except they don't have to pay the 30% tax.

The only way to command the labels is to control the market. Apple did it with the iPod and iTunes. They were able to set the .99c price for any song. The labels were upset about it.

Apple is trying to reproduce that with streaming. They're initial goal was to release a cheaper suscription ($7.99/month).

j / k navigate · click thread line to collapse

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rloc9y ago

The only way to command the labels is to control the market. Apple did it with the iPod and iTunes. They were able to set the .99c price for any song. The labels were upset about it.

Apple is trying to reproduce that with streaming. They're initial goal was to release a cheaper suscription ($7.99/month).

j / k navigate · click thread line to collapse