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> Spotify's biggest enemy are the record labels that they have to pay license fees to. Spotify's biggest enemy is Spotify. Apple Music doesn't have this proble
by CharlesW 1y ago
> Spotify's biggest enemy are the record labels that they have to pay license fees to.
Spotify's biggest enemy is Spotify. Apple Music doesn't have this problem.
- rchaud 1y agoApple Music isn't a solo business and doesn't report its figures publicly, so it's not known if its margins would be sustainable if it weren't anchored to its much bigger Software and Services unit, which itself is anchored to an even bigger hardware sales unit.
- deleted 1y ago[deleted]
- CharlesW 1y agoSpotify pays ~70% of revenue to rights-holders, so unless you assume that Apple is paying a lot more, Apple Music is almost certainly profitable both as a standalone service and as a strategic bundle driver.
- yunwal 1y agoApple pays about 3x as much per stream as Spotify according to most sources. https://musosoup.com/blog/does-apple-music-pay-artists-more-than-spotify https://musosoup.com/blog/does-apple-music-pay-artists-more-...
- kalleboo 1y agoAnd this is because Spotify has a free, ad-based tier that pays way less than the paid premium listeners. Whereas Apple Music is all paying users (ignored the limited free trial)