Apple's Deep Pockets Affecting Spotify Contract Renewals

[macduke]

Nope if Apple is paying more that's a business decision that only helps musician and copyright holders in the end it's called free enterprise and is hardly antitrust - Antirust would be if Apple did not allow a Spotify app on iPhones

I'm just worried they'll argue that Apple has all this money, blah blah blah, and so they were able to price poor little Spotify right out of the market with unfair deals that paid too much to the music industry. Poor little startup Spotify can't deal with it because they made deals they couldn't make profit on. Nanny state, etc etc, yeah it's dumb. Unlikely to happen but you never know.

 

[RedOrchestra]

But wait I thought Apple was cheap and only cared about profits?

They will be duly rewarded AFTER they clear out the competition.
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I think Apple it's trying to bring down Spotify

Of course they are.

 

[Seanthesheep]

In the short term the record labels stand to profit out of milking as much money as they can from Spotify/Apple. But if Spotify goes bust because it cannot afford to match what Apple is paying, both the customers and the record label will be at a disadvantage in the long term.

Apple will be able to negotiate a lower price to pay record labels as it killed off the competition and increasingly more people these days are only interested in streaming music (rather than buy tracks). It can also charge the customer a higher subscription fee as customers will equally have no other competitor to go to (and don't think Apple won't charge more, think IPhone 16gb).

Tldr: If Samsung buyout Spotify or the record labels consider easing up on Spotify to prevent a monopoly, I could see things working out.

 

[admob71]

Generally, consumers will pay MORE for a superior experience. It's not like Apple built a huge following because they were the cheapest on the market. They earned it. If Spotify is really that much better, Spotify can raise their subscription price and be profitable, not whine to the record industry that they should pay less because "we are the little guy." Apple was once "the little guy" (nearly went out of business) and then they built a product that the world loved and happily paid a premium to have. That's one way competition works. Regardless, I'm sure the European Union will eventually find a way to call this "anti-competitive" and soak Apple with a big fine so the money will make its way back to Sweden somehow, even if Spotify goes belly-up. That's the modus operandi of the EU.

I'm not saying you are wrong sir... but... on many occasions on this forum.i have read about how confusing the UI is on Apple music? I'm confused..

Have yourself a fine day sir..

 

[djcerla]

I wonder if Spotify will be better for Samsung than Milk Music?

Yes. Spotify is a strong brand.

The acquisition looks like a no-brainer for Samsung; they're probably waiting for Spotify's oxygen to run out, to buy it on the cheap. An IPO is out of discussion as there's no clear path to profitability now that a competitor with infinite-deep pockets has entered the arena.

 

[DotCom2]

Why not just set the price to be fixed for all business to operate at a certain level 55%.
It then comes down to customer experience, which one offers the better experience.

Because that's unAmerican son.

 

[iMcLovin]

I was an avid Spotify user, but because of the family plan offer Apple came with, I moved to Apple Music (even if spotify is/was better). Spotify promised to come with the same offer, and I gave them the 3 months apple music trial. Once it was over, I was used to Apple Music and Spotify had no offer in sight. It took them a year to get the same offer - so too bad for them taking so long.
Frankly with the amount of paying customers Spotify has and less that 50% goes to the music labels/owners, I wonder how they can loose money year over year. Their business plan doesn't work at all, how can they ever think they will earn money? They will loose more customers year over year to competition catching up and they will never be able to give less to labels and artists - that train has gone.

 

[sniffies]

What would Apple gain in the long run from a Spotify buyout? It makes more sense to pressure them out of business, rather than buy. Apple doesn't stand to gain too much from a buyout. Especially when you consider the amount of Android users who would most likely travel to Google or Amazon over buying an Apple product to play Apple Music on. Apple would be buying these customers for no reason.

Buying Spotify makes as much sense as buying Tidal.

 

[ozaz]

Still no one can even given me a slight clue on how many subscribers "Google Play Music" have?? (my streaming music choice for my iPhone 6 SONOS etc).
I remember everyone saying 'apple have so many credit cards on iTunes even with 10% sign up they will have many millions of apple music subscribers.
Fair play 12 months on they have - a lot - 15,000,000 v 30,000,000 Spotify

But hold on if having a 'device' might influence the uptake of the streaming service hasn't android got 80+% market share so on those figurers Google Play Music must have between 15 and 30 million ie 2nd place AT LEAST?
Does anyone know? why is google so cagey with the subscriber figures?
cheers

No numbers from me, just speculation.

I get the feeling that Google Play Music suffers from relatively weak new-music-discovery features. This is something both Spotify and Apple Music do well and contributes a cool factor to these services.

But other than weak new music discovery I do like Google Play Music.

 

[lagwagon]

What would Apple gain in the long run from a Spotify buyout? It makes more sense to pressure them out of business, rather than buy. Apple doesn't stand to gain too much from a buyout. Especially when you consider the amount of Android users who would most likely travel to Google or Amazon over buying an Apple product to play Apple Music on. Apple would be buying these customers for no reason.

Android users wouldn't have to buy an Apple product to play Apple Music. Apple Music is available on Android and has been for many months.

 

[agitoTech]

Why not just set the price to be fixed for all business to operate at a certain level 55%.
It then comes down to customer experience, which one offers the better experience.

...because capitalism

 

[RedWing512]

The reason i stopped using Spotify it's because Android users was also using it..so was no longer cool! I don't understand why Apple has released Music for Android? Droid users are having problems financially - money problems xD

Once again, the "Apple Elitist" attitude rears its ugly head...

 

[carrrrrlos]

Apple please don’t kill Spotify.

 

[charlituna]

Apple will probably somehow be sued for this, even though they're paying the publishers more. It will be deemed "bad for the consumer" and the government will investigate it for being anti-trust since they have more negotiating power or some such B.S.

I had the same thought. Someone will probably try to claim there was collusion etc

 

[Kaibelf]

Apple will drive everyone out of business then abandon the music market.

Yeah people said that when the iPod came around, and yet here we are.

 

[charlituna]

. Especially when you consider the amount of Android users who would most likely travel to Google or Amazon over buying an Apple product to play Apple Music on. Apple would be buying these customers for no reason.

Apple Music is on Android

 

[Kaibelf]

Why not just set the price to be fixed for all business to operate at a certain level 55%.
It then comes down to customer experience, which one offers the better experience.

Because the music business hasn't been nationalized in this country.

 

[Statusnone88]

The reason i stopped using Spotify it's because Android users was also using it..so was no longer cool! I don't understand why Apple has released Music for Android? Droid users are having problems financially - money problems xD

Awesome! Haven't read something this stupid for a long time. Thank you.

-Sent from my $880 "Financial Problem" Samsung Galaxy Note 7.

 

[SoSickSadNslOw]

Why doesn't Apple just buy Spotify and be done with it? I'm sure I'm missing a few things!

 

[Villarrealadrian]

Spotify is dead.

Nah there is always Android

 

[mlody]

Why doesn't Apple just buy Spotify and be done with it? I'm sure I'm missing a few things!

They should have bought it instead of the lame Beats 1 disaster.

 

[Abazigal]

Apple please don’t kill Spotify.

If Spotify dies, it will be because of its own fault and its refusal to update its business practices in response to the business environment. I am betting it will be their free tier which eventually does them in.

 

[Makosuke]

The reason i stopped using Spotify it's because Android users was also using it..so was no longer cool! I don't understand why Apple has released Music for Android? Droid users are having problems financially - money problems xD

Somebody please tell me that this user is just playing a parody of an Apple zealot and this is not a serious opinion.

 

[deany]

Spotify will be in business in 5 years time
However in the next 6 months Spotify will drop the FREE AD based subsciber base and they will move these 'sign ups' ( for want of a better expression) over to monthly payment
Ad based is DEAD.

 

[2010mini]

Please note:
- Spotify has more paying subscribers than Apple or Google
- Even though Spotify is not profitable, their upside is still huge

Also, the role of 'record labels' is changing. Their revance is shrinking and that will effect market dynamics.

Spotify's free tier is weighing on them like an anchor. They need to move those members to a paid subscribers. And they need to do this asap. No business operates at a loss for long.