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I imagine Apple's argument is: (1) They bring an enormous number of new subscribers and that this 3 month trial maximizes revenue for everyone including the ar
by Steko 11y ago
I imagine Apple's argument is:
(1) They bring an enormous number of new subscribers and that this 3 month trial maximizes revenue for everyone including the artist.
(2) they pay a slightly higher royaly share than spotify in part because of this longer trial.
(3) Apple shares revenue with the artist in the same 70/30 split we see elsewhere and the 30% is the finders fee they get for delivering many of their x hundred million users to the service. Since there's no revenue in the first 3 months, 70% of $0 is $0. Apple eats the bandwidth/server costs of the service in this time with no revenue coming in.
(4) Spotify paid users are fairly happy with that service and won't all switch to Apple Music overnight and the same with people who buy music and radio so it's not like all the money these artist's see turns off for 3 months. The free trial effect will be heavily staggered as a steady stream of users signs up over years.