Apple reportedly tried to keep Spotify out of U.S

Discussion in 'Apple, Inc and Tech Industry' started by Stella, May 30, 2012.

  1. Stella macrumors 604

    Stella

    Joined:
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    Location:
    Canada
    #1
  2. R94N macrumors 68020

    R94N

    Joined:
    May 30, 2010
    Location:
    UK
    #2
    So there wasn't competition already with the likes of Pandora, Rdio and MOG? I guess they perhaps realised how popular Spotify was already in Europe.
     
  3. nuckinfutz macrumors 603

    nuckinfutz

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    #3
    Of course they didn't want to Spotify here so early. They are planning their Spotify competitor is my guess.
     
  4. Jessica Lares macrumors G3

    Jessica Lares

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    Near Dallas, Texas, USA
    #4
    The problem with Spotify is that it's a service that has been done over and over again over here. It's also a business model that has failed the multiple times its been tried. It's a gamble because one month they can have a million paying users, and the next month lose a quarter of them. So the royalties go up and down every month and it's very little money.

    With iTunes Match, the royalties are on the rise, and they get higher and higher with every subscriber (for at least this first year). And you probably will have people coming back because it's such a small price to pay for music you can pretty much load on any device, use whatever program you want to play them and even burn disks of them.
     
  5. nuckinfutz macrumors 603

    nuckinfutz

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    #5
    I think Jobs had it wrong to a degree.


    People "do" want to own music but it's prohibitively expensive if you've going a wide range of listening interests.

    Apple's solution for streaming should be bent on creating owners of music. I should be able to stream music but also there should be some incentives for buying a song.

    Streaming customers could get $.20 cents of a song or a certain amount off of albums.

    Spotify is great for finding new music and being able to listen to more than just 90 seconds. Where it doesn't help is get artists paid and for that there needs to be higher royalties and a move towards "hey if you really like this song buy it and support the artist"
     
  6. benzslrpee macrumors 6502

    benzslrpee

    Joined:
    Jan 1, 2007
    #6
    owning assigns an actual dollar value to the underlying asset. streaming assigns an actual dollar value to the underlying service.

    if the industry evolves to where music is viewed a subscription service then eventually the value of music is commoditized. generally this means all parties involved get paid less... and personally i'm ok with that. However, Spotify/Rdio/Mog should keep in mind that if and when it gets to that point, they will likely go out of business as it make less and less sense to use them as a distribution channel. Apple, Facebook, Google, Microsoft, Samsung, and Twitter bring far more value to the table due to their large number of users and vertical product categories. also, since these platforms all cross each other paths at some point, it diminishes the bargaining power of each tech company.

    i do agree that there should be incentives for a user to buy the actual asset. i'd probably structure it by using some sort "play a song X times" limit and Apple's cloud music matching. the theory being that if you're going to play a song a bazillion times in a month, just spend the $0.99 and buy the MP3 already. also, water under the bridge on all the pirated songs, match it for free. people really aren't going to waste time and money to re-buy those songs. labels should encourage them to waste time and money on new songs. if you stay with the subscription service for past 1 year, you get $X off all albums, past 2 years $Y off, so on and so forth. maybe heavily suggest similar unknown artists for popular songs, these are probably high(er) margin sales since the advertising budget is allocated all to Justin Bieber.

    as a side note, i agree with Jessica Lares Spotify/Rdio/Mog are poor business models. basically it's a company going to another company proposing that both should try to eke out a miserly return on revenues of $10/month with equally depressing margins, out of users who don't want to pay, think they shouldn't have to pay, or would rather pirate. Spotify has what... 3M paying users? big whoop. if the other two are at parity that brings the total to 9M out of an estimated market size of too-big-to-count. and tech blogs are going gaga over what?

    i fail to see what Apple would be nervous about in Spotify's business model.


     
  7. malman89 macrumors 68000

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    May 29, 2011
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    Michigan
    #7
    Tell that to most of Europe that has been using, loving, and paying for Spotify for much longer than we have. I love Spotify too, but not enough to pay for it, but I'm just super cheap. I also am not a fan of the Facebook link, but I got in during beta, so I never set that up. Can you still make an account without Facebook link? If not, I'd be annoyed at that.
     
  8. Jessica Lares macrumors G3

    Jessica Lares

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    Near Dallas, Texas, USA
    #8
    I have no idea. I love Spotify too AND pay for it. I got in when it debuted in the UK so no Facebook integration on my account thankfully.
     
  9. R94N macrumors 68020

    R94N

    Joined:
    May 30, 2010
    Location:
    UK
    #9
    Me too, but the Facebook integration is my least favourite thing about it.
     

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