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Does anyone know the social mechanisms behind the scenes that allow them to negotiate such effective deals? Spotify is deeply in bed with the traditional label

Does anyone know the social mechanisms behind the scenes that allow them to negotiate such effective deals? Spotify is deeply in bed with the traditional labels/music industry and that industry seems to be able to "move" stuff easily from what I've seen. I always have a hard time visualizing all the components at play here though.

YetAnotherNick 3y ago
I think it is because spotify's biggest competitor is Apple. And both Google and Sony really doesn't want Apple to control the music streaming industry as it could affect their device sales.
- panopticon 3y ago
  It's interesting because Google has their own competing music streaming platform, but they still seem to give preferential treatment to Spotify. For example Spotify was the only service that worked with the Android clock app when they added the ability to use music with alarms. YouTube Music support didn't land until a year later.
  - lallysingh 3y ago
    Because they know that their service sucks and will probably get shut down. I'm speaking as a customer of both
- CharlesW 3y ago
  > And both Google and Sony really doesn't want Apple to control the music streaming industry as it could affect their device sales. Is that true? My Alexa and Sonos devices work great with Apple Music.
  - YetAnotherNick 3y ago
    Becuase there is competetion now so Apple has to play well. In cases where Apple doesn't have any competetion or is significantly ahead like iMessage or FaceTime or satellite message, Apple has a history of creating ecosystem.
  - bryanrasmussen 3y ago
    when a company that produces hardware that plays music has control over the industry that delivers music to that hardware they might be tempted to make their hardware handle that music better. Apple might not even do that, but given Google's documented behaviors about making their sites work better with Chrome they might expect that Apple would if they could.
    - CharlesW 3y ago
      > when a company that produces hardware that plays music has control over the industry that delivers music to that hardware… FWIW, Apple doesn't control the music industry. Spotify has more than twice the marketshare of Apple Music, so I'd imagine that (for now) Spotify has commensurate influence over the music industry. > …they might be tempted to make their hardware handle that music better. Maybe Google would, but (to my original point) Apple doesn't tie their media services to their devices.¹ I think it's worth keeping in mind that you really can't equate Google's evil tendencies to Apple's (and vice-versa) because their business models are completely different. ¹ https://www.apple.com/ae/apple-tv-app/devices/ https://www.apple.com/ae/apple-tv-app/devices/
      - bryanrasmussen 3y ago
        >FWIW, Apple doesn't control the music industry. ok but your previous comment was in response to >>And both Google and Sony really doesn't want Apple to control the music streaming industry as it could affect their device sales. >Is that true? My Alexa and Sonos devices work great with Apple Music. so when I replied > when a company that produces hardware that plays music has control over the industry that delivers music to that hardware… it is meant to imply that I am answering >is that true? with - Yes, that is true BECAUSE... and my statement > …they might be tempted to make their hardware handle that music better. followed by >Apple might not even do that, but given Google's documented behaviors should be interpreted as me saying Apple doesn't tie their media services to their devices (although that might change if they found it very beneficial). But Google is evil and would tie their media services to their devices therefore they might expect that other companies would do the same.
ketzo 3y ago
The music industry is, indeed, notoriously litigious / negotiation-heavy. Pure speculation: by necessity, Spotify has probably gotten pretty good at those things too. I would bet they've got some pretty heavy hitters in the dealmaking department.
personjerry 3y ago
A big portion of Spotify's ownership is held by the big music companies, including Sony. I learned this from watching The Playlist on Netflix. (It's way over-dramatized but you can learn a thing or two)
stefan_ 3y ago
Spotify started the EU antitrust case on Apple: https://www.theverge.com/2023/2/28/23618264/eu-antitrust-case-apple-music-streaming-spotify-updated-statement-objections https://www.theverge.com/2023/2/28/23618264/eu-antitrust-cas... Also of course, Spotify is somewhat of a monopoly of its own, or a chosen 'winner' by the music industry at large colluding.
- piva00 3y ago
  > Also of course, Spotify is somewhat of a monopoly of its own, or a chosen 'winner' by the music industry at large colluding. Spotify has ~30% of the market, Apple Music, Tencent, and Amazon have each ~13%, YouTube Music another ~9%. That's far from a monopoly...
lotsofpulp 3y ago
I would guess Google needed Spotify to prioritize the Android App. And as far as I can tell, the music labels (Warner/Sony/Universal) need Spotify to be able to negotiate with Apple/Google/Amazon.

YetAnotherNick 3y ago

I think it is because spotify's biggest competitor is Apple. And both Google and Sony really doesn't want Apple to control the music streaming industry as it could affect their device sales.

panopticon 3y ago
It's interesting because Google has their own competing music streaming platform, but they still seem to give preferential treatment to Spotify. For example Spotify was the only service that worked with the Android clock app when they added the ability to use music with alarms. YouTube Music support didn't land until a year later.
- lallysingh 3y ago
  Because they know that their service sucks and will probably get shut down. I'm speaking as a customer of both
CharlesW 3y ago
> And both Google and Sony really doesn't want Apple to control the music streaming industry as it could affect their device sales. Is that true? My Alexa and Sonos devices work great with Apple Music.
- YetAnotherNick 3y ago
  Becuase there is competetion now so Apple has to play well. In cases where Apple doesn't have any competetion or is significantly ahead like iMessage or FaceTime or satellite message, Apple has a history of creating ecosystem.
- bryanrasmussen 3y ago
  when a company that produces hardware that plays music has control over the industry that delivers music to that hardware they might be tempted to make their hardware handle that music better. Apple might not even do that, but given Google's documented behaviors about making their sites work better with Chrome they might expect that Apple would if they could.
  - CharlesW 3y ago
    > when a company that produces hardware that plays music has control over the industry that delivers music to that hardware… FWIW, Apple doesn't control the music industry. Spotify has more than twice the marketshare of Apple Music, so I'd imagine that (for now) Spotify has commensurate influence over the music industry. > …they might be tempted to make their hardware handle that music better. Maybe Google would, but (to my original point) Apple doesn't tie their media services to their devices.¹ I think it's worth keeping in mind that you really can't equate Google's evil tendencies to Apple's (and vice-versa) because their business models are completely different. ¹ https://www.apple.com/ae/apple-tv-app/devices/ https://www.apple.com/ae/apple-tv-app/devices/
    - bryanrasmussen 3y ago
      >FWIW, Apple doesn't control the music industry. ok but your previous comment was in response to >>And both Google and Sony really doesn't want Apple to control the music streaming industry as it could affect their device sales. >Is that true? My Alexa and Sonos devices work great with Apple Music. so when I replied > when a company that produces hardware that plays music has control over the industry that delivers music to that hardware… it is meant to imply that I am answering >is that true? with - Yes, that is true BECAUSE... and my statement > …they might be tempted to make their hardware handle that music better. followed by >Apple might not even do that, but given Google's documented behaviors should be interpreted as me saying Apple doesn't tie their media services to their devices (although that might change if they found it very beneficial). But Google is evil and would tie their media services to their devices therefore they might expect that other companies would do the same.

ketzo 3y ago

The music industry is, indeed, notoriously litigious / negotiation-heavy. Pure speculation: by necessity, Spotify has probably gotten pretty good at those things too. I would bet they've got some pretty heavy hitters in the dealmaking department.

personjerry 3y ago

A big portion of Spotify's ownership is held by the big music companies, including Sony. I learned this from watching The Playlist on Netflix. (It's way over-dramatized but you can learn a thing or two)

stefan_ 3y ago

Spotify started the EU antitrust case on Apple: https://www.theverge.com/2023/2/28/23618264/eu-antitrust-case-apple-music-streaming-spotify-updated-statement-objections https://www.theverge.com/2023/2/28/23618264/eu-antitrust-cas... Also of course, Spotify is somewhat of a monopoly of its own, or a chosen 'winner' by the music industry at large colluding.

piva00 3y ago
> Also of course, Spotify is somewhat of a monopoly of its own, or a chosen 'winner' by the music industry at large colluding. Spotify has ~30% of the market, Apple Music, Tencent, and Amazon have each ~13%, YouTube Music another ~9%. That's far from a monopoly...

lotsofpulp 3y ago

I would guess Google needed Spotify to prioritize the Android App. And as far as I can tell, the music labels (Warner/Sony/Universal) need Spotify to be able to negotiate with Apple/Google/Amazon.