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I remember when Gruber was telling us that Apple was not buying Beats for the streaming service and its associated contracts. The truth is Apple acquired Beats

by rloc 10y ago

I remember when Gruber was telling us that Apple was not buying Beats for the streaming service and its associated contracts. The truth is Apple acquired Beats almost solely for this asset. This move makes totally sense if you consider that Apple is trying to control the streaming market the same way it controlled the download to own one. I'm sure the labels will do whatever they can to avoid it. Spotify is a (big) thorn in Hook's foot and Ek would die rather than sell Spotify. That also explains why Apple is not releasing the 30% tax for music streaming and why Spotify released an app with its own payment system to grab attention. It's war.

k-mcgrady 10y ago
>> I remember when Gruber was telling us that Apple was not buying Beats for the streaming service and its associated contracts. He really said that? I thought everyone at the time was pretty much agreed they were buying it for the streaming service, not the headphones. >> "That also explains why Apple is not approving the last Spotify app update. It's war." They're not approving it because supposedly Spotify built in their own payment system which is a clear violation of App Store guidelines. Could be wrong but that's what I read.
- rloc 10y ago
  >> "He really said that?" http://daringfireball.net/linked/2014/05/08/beats http://daringfireball.net/linked/2014/05/08/beats "The problem with this theory is that those licenses (to my understanding) aren’t transferable in the event of an acquisition. Music label executives may be dumb, but they’re not that dumb." >> "They're not approving it because supposedly Spotify built in their own payment system which is a clear violation of App Store guidelines. Could be wrong but that's what I read." Maybe but I think it was a strategy. Spotify wanted to grab attention. The origin of the issue is really the fact that Apple is not releasing the 30% tax for music streaming services. This is unsustainable in the music business where there is close to 0 margin. The labels take most of the revenue.
  - k-mcgrady 10y ago
    >> "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).
    - deleted 10y ago
      [deleted]
    - rloc 10y 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).
  - alsetmusic 10y ago
    First, you said: >> That also explains why Apple is not approving the last Spotify app update. It's war. Then: > The origin of the issue is really the fact that Apple is not releasing the 30% tax. I'm honestly not sure if you're contradicting your first statement or if I'm misunderstanding your choice of words. Is Apple failing to pay out? Seems like I would have read about it if they reneged on their contract with a highly visible third party.
    - rloc 10y ago
madeofpalk 10y ago
> That also explains why Apple is not approving the last Spotify app update. It's war. To be fair, Apple has a long history of blocking apps with the own payment and subscription system.

by rloc 10y ago

k-mcgrady 10y ago

>> I remember when Gruber was telling us that Apple was not buying Beats for the streaming service and its associated contracts. He really said that? I thought everyone at the time was pretty much agreed they were buying it for the streaming service, not the headphones. >> "That also explains why Apple is not approving the last Spotify app update. It's war." They're not approving it because supposedly Spotify built in their own payment system which is a clear violation of App Store guidelines. Could be wrong but that's what I read.

rloc 10y ago
>> "He really said that?" http://daringfireball.net/linked/2014/05/08/beats http://daringfireball.net/linked/2014/05/08/beats "The problem with this theory is that those licenses (to my understanding) aren’t transferable in the event of an acquisition. Music label executives may be dumb, but they’re not that dumb." >> "They're not approving it because supposedly Spotify built in their own payment system which is a clear violation of App Store guidelines. Could be wrong but that's what I read." Maybe but I think it was a strategy. Spotify wanted to grab attention. The origin of the issue is really the fact that Apple is not releasing the 30% tax for music streaming services. This is unsustainable in the music business where there is close to 0 margin. The labels take most of the revenue.
- k-mcgrady 10y ago
  >> "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).
  - deleted 10y ago
    [deleted]
  - rloc 10y 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).
- alsetmusic 10y ago
  First, you said: >> That also explains why Apple is not approving the last Spotify app update. It's war. Then: > The origin of the issue is really the fact that Apple is not releasing the 30% tax. I'm honestly not sure if you're contradicting your first statement or if I'm misunderstanding your choice of words. Is Apple failing to pay out? Seems like I would have read about it if they reneged on their contract with a highly visible third party.
  - rloc 10y ago

madeofpalk 10y ago

> That also explains why Apple is not approving the last Spotify app update. It's war. To be fair, Apple has a long history of blocking apps with the own payment and subscription system.