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Apple's Deep Pockets Affecting Spotify Contract Renewals
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But as long as Apple refuse to support Google Cast, Apple Music won't be taken seriously by many Android users.
I can't even take Apple Music seriously and I'm an iOS user LOL.
Apple drives prices higher, limits innovation and owns the minds of its Devotees...
Yeah, I could see this working out well. They need a company with deep pockets to prop them up.
So now somehow Apple paying more is a bad thing??? This is how negotiation and contracts and a free market works. Spotify has had years to corner the market and build a product with built in loyalty - it's easier to retain customers than to gain new ones. The fact that they're having issues reflects on them, not on Apple.
Lots of p and v on this site about Apple Music, but my family and I have found it to be wonderful. We have a family plan so that my wife, my son, and I can all stream at the same time and share a library with the Family Sharing plan. Everything I uploaded from iTunes Match is there and integrated with my streaming library. (Yes, there were problems with this at first, but in my case, they have been resolved after a couple of updates.)
What's even more remarkable is how much my 63 year old dad loves it. He spends hours just finding new stuff to put in his library and loves that he can have most of his old record collection on his phone. He does not find it hard to use at all, and he's far from tech savvy.
So yes, say whatever you want about the UI or whatever, but I think for most "normal" users of Apple Music, it's working out more or less fine. Subscriber numbers are already half of what Spotify has for paying subscribers, and that happened in less than a year's time. I think Spotify is a fine service, and I do like it, but they must be absolutely terrified for the longevity of their business right now. That free tier cannot possibly be long for this world.
You can scoff at Apple's "deep pockets" if you want to, but they have a streaming music service to get off the ground. They should not be worried about the impact it will have on Spotify, and as a devoted user of Apple Music, that's fine with me. I agree with some of the sarcastic comments that have been made here though about lawsuits. I guarantee someone will sue Apple for giving the labels more money than the other services. Or claim anti-trust or whatever. It's absolutely ridiculous.
What's even more remarkable is how much my 63 year old dad loves it. He spends hours just finding new stuff to put in his library and loves that he can have most of his old record collection on his phone. He does not find it hard to use at all, and he's far from tech savvy.
So yes, say whatever you want about the UI or whatever, but I think for most "normal" users of Apple Music, it's working out more or less fine. Subscriber numbers are already half of what Spotify has for paying subscribers, and that happened in less than a year's time. I think Spotify is a fine service, and I do like it, but they must be absolutely terrified for the longevity of their business right now. That free tier cannot possibly be long for this world.
You can scoff at Apple's "deep pockets" if you want to, but they have a streaming music service to get off the ground. They should not be worried about the impact it will have on Spotify, and as a devoted user of Apple Music, that's fine with me. I agree with some of the sarcastic comments that have been made here though about lawsuits. I guarantee someone will sue Apple for giving the labels more money than the other services. Or claim anti-trust or whatever. It's absolutely ridiculous.
Why would they? They are getting more from other streaming providers. If Spotify shuttered tomorrow, all their subscribers would gravitate to the other providers.
Free market does not mean a good market. Just look at what what happens to the average person with health insurance.
While you are correct about the subscribers moving elsewhere, the services themselves would eventually bring the revenue back down to the 55%, maybe less. Once Spotify is gone, the big guys have free reign on how they control the market. The less competitors, the more bargaining power they have.
I am of the same opinion, and its one of the main reasons I switched to Spotify and a third party music player on my iPhone. Now it costs the same, the UI is better, I am not constantly reminded/notified that my music is only on my device and that I don't have Apple Music. Also, Siri does not automatically stream instead of play on board music, and my music tags are accurate.
Apple music: tried it, sucked. Buffers more than it plays music. Even in a strong 4g cov. area.
Google play music: currently reviewing free trial, buffers less but still sucks. Even in a strong 4g cov. area, or on my cable internet I will experience hang-ups and delays in selected music.
Spotify: works almost perfectly. I pay 7.99/ month through my cell phone carrier (Sprint) and only when I'm stuck in a 3g area does it buffer and cause me to switch over to FM out of frustration, or listen to a downloaded playlist.
Summary:
Maybe Apple is willing to pay more for royalties because you can only listen to a clip at a time before it buffers. Neither of the two alternatives seem to have an equivalent infrastructure to Spotify. Apple has some nerve to try to strong arm the industry without actually offering a platform that can compete.
Glad to see I'm not the only one annoyed by Apple's response to this evolving market...
Google play music: currently reviewing free trial, buffers less but still sucks. Even in a strong 4g cov. area, or on my cable internet I will experience hang-ups and delays in selected music.
Spotify: works almost perfectly. I pay 7.99/ month through my cell phone carrier (Sprint) and only when I'm stuck in a 3g area does it buffer and cause me to switch over to FM out of frustration, or listen to a downloaded playlist.
Summary:
Maybe Apple is willing to pay more for royalties because you can only listen to a clip at a time before it buffers. Neither of the two alternatives seem to have an equivalent infrastructure to Spotify. Apple has some nerve to try to strong arm the industry without actually offering a platform that can compete.
Glad to see I'm not the only one annoyed by Apple's response to this evolving market...
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Why? You said it "price fixing." All the players in an industry can't legally get together and set a price. Anymore than Apple , Spotify, Google, etc., could all get together and set a price they will pay.
Spotify brought high quality music streaming to the masses, their software is top class on all platforms and their pricing model is fine (ignore the ad based model if you are serious about listening to music on your devices at a decent streaming quality).
Last time I checked Apple Music was late to the party and it was S**t.
While I am sure Apple will eventually get their act together, I think everyone would benefit from Spotify remaining active I this space and leading the way as they have done until now.
Apple should try to outsmart their competitors through innovation instead of just leveraging their superior cash flow.
Last time I checked Apple Music was late to the party and it was S**t.
While I am sure Apple will eventually get their act together, I think everyone would benefit from Spotify remaining active I this space and leading the way as they have done until now.
Apple should try to outsmart their competitors through innovation instead of just leveraging their superior cash flow.
As someone who has been a long-time Spotify Premium user and spent the last month trying Apple Music, I refuse to cancel Spotify. Their curated playlists, interface, and desktop application are superior to what Apple Music offers.
The Apple Music interface is a mess.
The Apple Music interface is a mess.
Apple tries to negotiate lower prices from its suppliers, therefore Apple is evil and greedy. Spotify tries to negotiate lower prices from its suppliers, therefore Apple is evil and greedy.
Then Apple should pay the same prices for their device components as the smaller, less powerful, and lower volume companies. Yet Apple always wants to try to get the best possible prices.
Or just let the free market work itself out. Let the companies negotiate their own prices.
http://bgr.com/2016/08/19/iphone-7-components-pricing/
Apple’s plan to keep iPhone 7 margins high may have just imploded
Aug 19, 2016
Apple’s efforts to secure lower component pricing from iPhone suppliers has been met with strong resistance, according to a new report from Digitimes. The report claims that Apple in recent weeks sought to convince component manufacturers to reduce their quotes for iPhone parts by 20%. Apple has historically been able to wield quite a bit of power when it comes to securing favorable contract terms, but with iPhone sales currently on the decline, Apple has clearly lost a bit of its negotiating power.
Generally, Apple is able to get some of the best deals on components because suppliers can make up the difference on volume and Apple is famously willing to pay up-front for parts. But with orders for iPhone components set to decline 30% year over year, it’s easy to see why some suppliers were quick to balk at Apple’s demands.
With Apple and component suppliers at a seeming standstill, it’ll be interesting to see how margins on the iPhone 7 are affected. Historically, and in large part due to Tim Cook’s operational wizardry, Apple has for years managed to secure favorable pricing deals from component manufacturers. Even during the Steve Jobs era, Cook — who at the time served as the head of Apple’s worldwide operations group — was highly regarded for getting Apple the absolute best deals on components.
Now as to why Apple suddenly demanded a 20% discount, it all boils down to keeping the company’s revenue stream healthy. With iPhone sales growth currently on the decline, Apple is simply trying to squeeze more of a profit out of each iPhone sold. Another theory we’ve seen suggests that because the components that make up the iPhone 7 may be more expensive than what Apple used on the iPhone 6s, Apple is simply trying to make up the difference in order to protect its precious margins.
I hope Spotify stays in buisness. It works very well for me. I have not even used the free apple music trial because spotify "just works".