Written by: Teagan K.
I myself have been using Apple Music for almost two years now. Since I have an Apple iPhone, I never thought twice about getting Apple music. There has always been a debate about whether Spotify or Apple Music is better. Personally, I have never done much exploring on Spotify, since I do not have a subscription, but some people swear by it.
Spotify recently has been more vocal about how Apple Music has put detrimental rules and regulations that do not allow Spotify to compete with Apple Music. Spotify has released statements regarding this issue. This has created a hostile monopolistic situation for the streaming music industry, placing Apple on the top. This can be very dangerous for consumers that rely on music streaming on a day to day bases like myself and many other high school students. Apple soon might have the power to increase the monthly subscription fee, take money away from artists, and pocket all of the extra cash, if there are no longer any competitors left for Apple to compete with.
When Apple users choose to upgrade their Spotify account to a premium subscription, Spotify must give Apple a whopping 30 percent of the subscription fee. This is all because Spotify uses the Apple iTunes store to list their app on their platform. Does that seem fair to you? Spotify is then forced to raise their prices, in order to cover the basic costs of providing music to millions of fans. It would be impossible for Spotify to keep their monthly subscription fee the same or lower than Apple Music fees. IN ADDITION, continue to pay Apple a 30% tax fee, AND still have enough money left over to operate the company and provide streaming music to the world.
Do you see where the problem is here? How is Spotify suppose to compete for customers when it is virtually impossible for them to keep their prices as low as Apple. The statement that Spotify released caused an immense uproar in the music streaming community. Consumers have questioned if Apple is monopolizing the industry. Apple responded with a formal statement addressing the claims that Spotify made. Throughout their statement, Apple claims that Spotify would not be where they are today without the help of the Apple Store growing the company. Essentially saying that the only reason that Spotify is successful is because of Apple.
Is this just the first step that Apple has taken that could potentially wipe out all competitors? This could result in even more expensive smartphones than ever before. If you look into all of the specific regulations that Apple music has placed on their competitors, it makes me think twice when I go click the play button on my Apple music. How about you?
Works Cited
“Addressing Spotify's Claims.” Apple Newsroom, 6 Apr. 2019, www.apple.com/newsroom/2019/03/addressing-spotifys-claims/.“Spotify Files Apple Subscription Cut Complaint to European Commission.” The Drum, www.thedrum.com/news/2019/03/13/spotify-files-apple-subscription-cut-complaint-european-commission.
Steele, Anne, and Tripp Mickle. “Apple Music Overtakes Spotify in U.S. Subscribers.” The Wall Street Journal, Dow Jones & Company, 5 Apr. 2019, www.wsj.com/articles/apple-music-overtakes-spotify-in-u-s-subscribers-11554475924.
I agree that if I were in Spotify's shoes I would be upset. But at the same time I think that Apple has has the right to promote their music streaming service on their phone. If Spotify is this upset about the issue they should look to partner with Google or Samsung phones. I cannot blame Apple for not promoting a competitor's product.
ReplyDeleteApple's control over their platform and the iTunes store is concerning because other companies conduct business via their services. Apple fixing their platforms in favor of themselves to squash competitors would only raise prices, decrease competition, and in the end, decrease the quality of service. Apple is not a natural monopoly and actions that it's taking to monopolize are not good for the tech business. Apple could do the same thing to any other tech company that sells apps or subscriptions for apple phones and that's really concerning.
ReplyDeleteI have used apple music for years now so I love it. This was interesting to hear since one id kind of dominating the other. I didn't know apple charges that much to spotify for all their profits but dang I would be mad if I were spotify. Since they are competitors there are some things that are understandable but then spotify shouldn't be working with apple,they should work with one of their competitors to really make it more competitive.
ReplyDeletePersonally I am a Spotify user and a big fan of the streaming service so I may be a slightly biased, however I think that what apple music is doing is ridiculous. At the end of the day they are threatened because Spotify is a big competitor (and just has a better overall service in my opinion). I am curious if Apple does this to other apps as well and I wouldn't be surprised if they are just doing this to run Spotify out of business. I first made the switch to Spotify because Apple messed up my music library and I have sworn off Apple music since then, and I don't plan on going back anytime soon. I think most people have a clear preference and would be willing to pay a few extra dollars a month to stick with Spotify.
ReplyDeleteMaybe instead of Spotify having to use Apple's iTunes to get all of their streamed music content, Spotify could instead partner up with the artists themselves and their costs might decrease. The music might then be less expensive since they would no longer have to pay Apple the 30% fee and maybe they would start to gain more customers instead of losing them to Apple. However, I realize this would be hard to do and maybe lessen the amount of choice consumers have in the music itself.
ReplyDeleteI had no idea that Apple makes Spotify pay that much money to them to allow their service on the iPhone. I do however have a problem with Spotify playing the victim. Spotify has long been criticize for how little they pay artists. Artists only make an average of $0.0011 per stream after the label company is paid. Apple paid 4% more of their revenue to their artists. Which may not seem like a lot until you consider the millions of songs streamed each year. So while Spotify is loosing money to Apple they are also starving their artists of money.
ReplyDeleteI didn't really know that Spotify has to pay Apple to be on the app store. If Spotify could partner with the artists themselves maybe there would decrease. The music that they have on their app might decreases because they don't have to pay Apple the 30% fee. In doing this they might be able to gain more customer instead of losing them to Apple. In doing this it would be hard and maybe lessen the amount of music you can listen to.
ReplyDeleteI think that spotify is getting a lot of money because of the apple company becuase apple has to allow for the spotify app to be put on apple phones. However, spotify wants to earn more money and that’s a reason for them to increase their prices and allow for the spotify premium without the ads and that’s what they have different than other music companies. Allow spotify prices are higher than apple prices they do have different options and that’s why people use spotify. I personally have never used apple music or thought about using it before because I have always been exposed to spotify, so I think the reason spotify gets this much money is because of the fact that apple user download the app compared to using apple music.
ReplyDeleteThe real issue that is highlighted by Spotify, from the ad that I have seen, is that Apple is both the controller of the marketplace, ie. The App Store, while at the same time they are a business that is participating within that market. By this unfair competition, it’s obvious that Apple is taking advantage of its position as market controller in order to drive out the main competition that is Spotify. I’m not exactly sure how illegal this practice is, but it surely is unethical. I would like to think that Spotify would have an actual case against Apple should this be taken to court. Although music streaming is one of the least beneficial ways for consumers to support their favorite artists, this side of the streaming service feud is too much of a problem to ignore.
ReplyDeleteI can understand why it might upset a company for being forced to pay another company for a service they're providing. But I personally feel this feud is unnecessary and isn't an actual reason why it should be like this. One thing that needs to be taken account is that Apple is not only a multi-million (or more) dollar company but also provides phones. Them providing phones is a significant thing that has to be taken account since they're allowed to customize the phone, and give them a slight edge over others since it's their device. This makes companies that don't provide cell phones (ie Spotify) have to purchase the right to use their store and be on it. I strongly believe that it is fair that Spotify is taxed since they're using a service that's provided by Apple. Also, where is the google play store in this topic? How much does google charge? Comparing and contrasting between the two app services would help give a better understanding about this issue. But in the end, Apple isn't in the wrong here and also Spotify shouldn't be having a fued over a service like this.
ReplyDeleteApple is a very dominant brand in the US especially but worldwide Apple isn't so strong. In my opinion, if Spotify started to target a more international audience they could sway those Apple music users to their side. Both companies have very large audiences and are continuing to grow, but Spotify has to come up with a way to further compete. Whether it be through advertising or improvements within the app.
ReplyDeleteI loved this article on the fact that I could relate to this one the most. I always every month think about what I should buy a subscription to Spotify,Soundcloud or Apple music. Me personally I think Spotify is the best because the style of the app is way easier to follow and more organized than Apple music. I also didn’t know that Spotify has to pay Apple to be on the app store which I think is unfair. But I don’t think Spotify is going away any time soon.
ReplyDeleteIt is news to me that Spotify has to pay Apple to keep the app on the app store. However, this is an effective move by Apple because since Spotify has to pay the fee, this would also cause them to bump up their prices. Ultimately, Apple music might be more appealing to people since it is cheaper and there is also more music, but I get how Spotify tries to compensate for the price by including different features.
ReplyDeleteI totally agree that this is a big issue. From class, we have all been made pretty aware that monopolies live up to their negative connotations and most of the time, are not beneficial for consumers. In the case of Spotify vs. Apple music, the possibility that Apple music could be a monopoly in the music streaming business does not sit well with me. I personally loooove Spotify and didn't even know Apple Music was very popular, but the fact that they are forcing spotify to give them 30% of their subscription fees seems very unfair. If APple music wants to be the more popular music streaming source, then they should upgrade their services so that more people want to use it for its quality--not undercut Spotify. In my opinion, even though spotify is a competitor of Apple, they should not treat them any differently than any other app in the apple app store and there should be some kind of rule that enforces this for the sake of the consumer.
ReplyDeleteI really like how you created your argument. I agree that apple is monopolizing the music streaming platform as they are taking percents of spotify’s profits and also providing their own streaming services. In addition, the company and brand continue to dominate the smartphone industry and technology industry in general as they are so prominent. Apple has placed so many patents on their services that they are becoming immune to practices that help provide competition.
ReplyDeleteI was not aware that Spotify used Apple. I personally prefer Spotify, but I have tried Apple Music. I never really though twice about which program I actually really preferred over each other. They are the same price and pose some qualities. One thing I have noticed is that Spotify has lesser known artists or starting artists, similar to soundcloud. I have not seen many smaller artists on Apple maybe for the fact that those artists may have to pay a fee to be featured? I cannot back that up completely, but I have heard some rumors about that.
ReplyDeleteI agree that it is virtually impossible for companies such as spotify, soundcloud, and other music streaming platforms on the Itunes store to really create competition against apple music. Not only is Apple music run by the owner of said mother company. They are able to charge as much as they want for their subscription fee because, they don’t have to donate any of their funds to another company. Whereas companies like spotify have to donate around 30% of their income to the apple company for allowing their app to be displayed in the said virtual store. Meaning, as a result from the dominant company offering a service at a lower cost than competitors it's almost impossible for the competition to compete, when they have to pay their profits to their competitors.
ReplyDeleteApple seems to be after everyone and always wanting to be on top. I am a user of spotify, and love it. I was going to try apple music but you need to pay to listen to any of the music. With spotify you are still able to listen to music and still have the choice of upgrading. After reading this article, it makes me wonder why apple needs to be on top. Apple is taking money from spotify because of the fact that the app is sold on the apple store. Looking at apple they make a lot of money from other things, so why don't they just step back from this. I may think that this is because many more users use spotify, and in the end they may be making more money than apple music and this is the only way they can still make money. It does make me think twice about when using apple products.
ReplyDeleteAs a firm believer in Apple music and Spotify, I have come to the conclusion of this article that this is Apple’s way to try to take control over other electronic companies. Users of Samsung, Google phones, or Androids often use Spotify to stream their music, as it’s cheap and easier to use. Like you said if Apple is planning on rising prices for Spotify, since they are interlinked, then that causes conflicts for non users of Apple products. This forcing people to gain an Apple product to satisfy their urgency of listening to music. Overall building the Apple company and dominating electronic devices. Realistically is it right for a company to become monopolistic and take over the electronic companies, no, but is it very smart, yes. In terms of your research, I believe this is Apple’s way to build their company and reaching their way to be one of the only companies selling electronic devices.
ReplyDeleteApple should not require spotify to give them 30% of the premium fee that consumers sign up for. One reason why Apple shouldn’t require Spotify to give them part of their profit is because they are two separate companies. Although, Apple has their own music program, they shouldn’t have a different program give them part of their profit because consumers prefer spotify over Apple Music. Because of the sharing of profit this may lead to Spotify increasing their monthly fee. Overall, Apple should not have Spotify give them part of their profit because it may lead to increasing prices for consumers.
ReplyDeletePersonally, I prefer Spotify rather than Apple Music and the fact that Apple is saying that spotify got where it is today with their help is not really true. Even though Apple provided Spotify in the app store, Spotify still got where it is now by its own advertisement and more. This could also affect the income of Apple, because users could be upset at the fact that it is because of them that the prices are higher. This could turn around and make Apple lose profit because people could be upset.
ReplyDeleteIf an Apple monopoly was to take effect, this means that Apple would set prices above the allocatively efficient amount (where MC=D) which is much higher at the point on the demand curve above where MC=MR. This means as well that consumer surplus would be considerably less. In order to counter this, governments may offer subsidies in order to encourage Apple to lower their price to the allocatively efficient amount. However, in order to do this, the government may need to tax the people, the very consumers buying the product. Is this really a viable solution then?
ReplyDeleteI do agree with you that it isn’t fair to Spotify with the rules and regulations Apple is setting. Apple has a whole slew of networks they receive income from so why do they need to be stealing money from Spotify? See for me, the only deciding factor for which competition is better, is convenience. Which includes, where can I use it, how often, how much freedom do I have with it, and how long will it last. I have never had spotify premium so I’m not sure all of the perks compared to Apple music, however I do know that it is harder to listen to without data. I also know that without premium, you have little to no freedom with which song you want to listen to and when. However I do like how easy it is t explore new music and explore playlists that people have made. But to be honest, even if Spotify was way better and cheaper, I would probably still stick with Apple music. Mostly because 1) that’s what I’m used to and what I’ve been using for the past three years 2) Spotify, to me, feels like just another app I have to get on my phone and 3) is just more accessible to my wants and easier for me to customize. No matter how crappy it gets, I don’t think I ever would switch to spotify. I feel like that plays a lot into how Apple could become a monopoly. It seems to me, that Apple has taken over. Although their phones can often be worse quality, people will choose Apple over Samsung because of this societal stereotype that Samsung “isn’t cool” or just not as good. And people who have a Samsung are seen as “inconvenient to talk to” which is ridiculous but how can I talk when I would still choose Apple over Samsung because of these reasons. Apple is everywhere and it’s getting harder and harder to choose a provider that is not Apple because of this.
ReplyDeleteI think something needs to be done to prevent Apple from gaining a stronger hold on the phone music market. Spotify not being able to compete with able because Apple can offer lower prices and gain more profit is awful for companies that want to compete like Spotify. Apple could potentially turn into a monopoly on phone music if something is not done to prevent them from growing and dominating the market even more.
ReplyDeleteI agree that Apple is acting monopolistic in this situation. They have essentially taken ownership of artists and their music through the iTunes store; however, I never realized that this would impact other streaming services like Spotify. Personally, I believe that anti-trust laws are necessary in preventing monopolies from forming; therefore, I think it is important for the government to step in concerning this case. With the current relationship between music, Apple, and Spotify the only loser is the consumer. In monopolies and oligopolies prices are raised creating clear losers; in the spirit of a free market it is the government's responsibility to ensure that competition remains because without competition prices will increase and quality will fall. All in all, the solution therefore may take intervention from Congress.
ReplyDeleteIt is interesting how you raise the point Apple has this power over Spotify, especially because Spotify has over 4 times the amount of users that Apple Music has. However, Apple Music has the advantage in that no one can use their program without paying, while as Spotify users can have access to music for free, just not the Premium package. If Apple continues to lower the cost of Apple Music to gain consumers, this large amount of Spotify users might start to steadily decline until there is no longer enough users for Spotify to continue running. If Apple becomes this Monopoly that you speak of, then methods of listening to music may drastically change in the future.
ReplyDeleteI have always been a Spotify user because I like it better, and I can use my account across different devices like our school computers. This would be true also for a Samsung phone, and I wonder what Samsung charges Spotify for their app store use. This also means that if Samsung made a streaming service for their own phones then Spotify would have a deficit with both phones and probably not be able to cover the costs.
ReplyDeleteThis problem affects many people because these are the two most popular music streaming bases in America. I never thought of Apple being able to take money from the Spotify subscriptions because Spotify is an independent company and there is virtually no other way for Apple users to access the app on their device. I agree that Apple shouldn’t be able to take a percent fee from Spotify because Apple gains too much control over the music industry by do so. Maybe instead of taking a percentage of the monthly subscriptions Apple could simply charge Spotify a non changing flat fee each year. Therefore Spotify would be allowed to grow as a company and Apple wouldn’t be as powerful.
ReplyDeleteI had apple music for about a year and a half and then switched over to spotify premium over the summer. It makes sense that Apple could possible wipe out all the competition with the prices of their service but I believe many people will continue to use spotify because of it’s features that Apple does not offer. Spotify offers many features including one that creates playlists similar to the music you listen to for you. I believe that although Apple might become cheaper and wipe out the competition, people will continue to use the other services no matter the price due to personal preference.
ReplyDeleteThe fact that Spotify must give Apple 30 percent of the subscription fee when Apple users choose to upgrade their Spotify account to a premium subscription seems pretty unfair. When you think about Android users that upgrade their Spotify account to premium, does Android charge Spotify a certain percentage too? It will be interesting to see if Apple reduces that percentage or completely remove it, because Android must not be happy with the situation, even if Android is charging a lower percent than Apple or none at all. Although it seems like Apple is becoming more and more of a monopoly, Spotify can still use Android to their advantage to keep increasing sales.
ReplyDeleteif music discovery is your goal then the musconv is top notch. Based on songs or artists you either upload from your Google music playlists or add as favorites on the site, MusConv will recommend similar songs, albums, and artists that you can add or exile as you go.
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