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Spotify to Apple: Time to Play Fair

timetoplayfair.com

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Re: Spotify to Apple: Time to Play Fair

#371

Can someone help me stop playing the world's smallest violin here? Spotify knowingly built a low margin business living in the pocket of the labels (who force Spotify towards razor thin margins) and Apple/Google (who have, since before Spotify launched, operated app stores for their platforms which are to some extent curated and which are not free market economies). Spotify feels aggrieved that Apple does not allow i…

RE: Football Monopolies can have negative effects without trying to extract monopoly rents. The competition between BT and Sky massively increased the TV rights price for e.g. the premier league , so the clubs got much more money. In theory, they used this to buy better players etc and increase the quality of the league. Although you now have to pay twice, the quality of the product has gone up. So it's not a zero-su…

> Until they entered into a rights sharing agreement.

Also worth noting that the rights sharing arrangement on Sky's end is... ...mandated by a settlement from a previous anti-trust case!

Re: Spotify to Apple: Time to Play Fair

#372
post #358

Earlier quoted context omitted.

Is Apple unfairly leveraging the app store the same way Microsoft leveraged IE? I don't even see this being an anti-competitive concern

> Is Apple unfairly leveraging the app store (...) .. yes, for many of the reasons described in Spotify's microsite. They have a monopoly, and they are unfairly favouring their own products. This should be enough to bring anti-trust concerns to the table.

Spotify seems to focus on IAP, but if you purchased Spotify Premium outside of IAP, it works just fine with that app.

Re: Spotify to Apple: Time to Play Fair

#373
post #57

Earlier quoted context omitted.

Sometimes I think so too. And then I look at the alternative ecosystems. Google? Amazon? Microsoft? Not even tempted...

Why do you need ecosystem own by one company? You can have Ubuntu laptop, Android phone, WebOS TV. They all support Spotify and Netflix, you can cast videos from Android phone to your LG TV.

The problem with going that route is that you have to be involved in creating and maintaining a great user experience. I love ubuntu, but it's not without it's quirks that require a certain amount of troubleshooting to overcome.

Re: Spotify to Apple: Time to Play Fair

#375

Earlier quoted context omitted.

There's an interesting philosophical question there. Can a vendor who has 15% marketshare really be called a monopoly? Sure, they have complete control over who publishes on their own platform, but that sort of thing happens all the time without anyone batting an eyelash at it: The major console vendors do this, as did all cell phone vendors in the pre-smartphone era. My digital camera does this. That leaves me think…

> There's an interesting philosophical question there. Can a vendor who has 15% marketshare really be called a monopoly? Philosophically interesting perhaps, but legally irrelevant. EU competition law is primarily concerned with dominant market positions and the abuse of that dominance. As the junior partner in a duopoly, Apple are inarguably powerful enough to substantially manipulate the market. https://en.wikipedi…

The EU competition commission would be very unlikely to place restrictions on allowable behavior until you reach a 40% market share.

http://ec.europa.eu/competition/antitrust/procedures_102_en....

40% share is certainly a much lower bar than in the US, but would still not apply to Apple's share of EU smartphones.

Smart watches, on the other hand…

Re: Spotify to Apple: Time to Play Fair

#376
post #178

Earlier quoted context omitted.

>Just as Microsoft were stopped from shipping a browser with their OS, vendors should be prevented from shipping an App Store with their OS. That comparison doesn't really work, because MSFT had an effective desktop monopoly. By contrast, Apple is a minority player in the mobile market. >They should be FORCED to have an open platform, Just because YOU want this doesn't mean the Apple users want it. I'm utterly conten…

> By contrast, Apple is a minority player in the mobile market. That's Apple's magic trick. They only own the top 20% of the market (evading monopoly attention) but they extract almost 100% of all profit in the smartphone market. No idea how you'd legislate against that though..

Sure, by why should the profit matter when we want to determine what is a monopoly and what isn't? Consumers have a choice, no matter what Apple makes.

Re: Spotify to Apple: Time to Play Fair

#377

Earlier quoted context omitted.

This is for the lawyers to make sense of, but in electing to be a platform provider, they should be held to higher standards in my opinion. They did indeed have "the service" in question, it was just limited to Apple's own offering. It's a scenario not unlike net neutrality: an infrastructure provider that is also a content provider can put themselves or select customers in a position where free market forces are hin…

> They did indeed have "the service" in question, it was just limited to Apple's own offering. Again, there's a difference between "Siri can talk to our music service" and "We have a stable public API that 3rd party vendors can hook into to connect up to a music service". They're not the same thing, and one is a lot easier than the other.

None of the above was an argument about how easy or hard it is to build a service (though Apple has enough resources to build anything they want within the scope that they operate).

Given that they are a platform provider, maybe doing the bare minimum to get their own stuff working, but not enough to get any alternatives to work, is a strategic choice on their part.

"If Homepod only works with Apple Music, more people will switch"

No, a hardware manufacturer has no requirement to support any specific software. An infrastructure provider, however, has (in MY opinion) a requirement to support what they support to an equal degree, or it amounts to… market manipulation? Something not quite fair, some kind of abuse of power which is to the detriment of all other participants in the market, customers and companies alike.

Obviously, America as of today disagrees, seeing as net neutrality is not held in very high regard.

I look forward to roads that only support Fords, water pipes that only support Nestlé water, and stairs that only support Nike shoes.

Re: Spotify to Apple: Time to Play Fair

#379
post #345
post #197

Earlier quoted context omitted.

Apple does pay artists a much larger cut than Spotify. At e.g. 5000 streams Apple pays the artist ca 37 USD vs the 22 USD that Spotify pays out.

$22*1.30 = $35.1 Interesting, so Spotify could pay nearly the same simply by paying the 30% to artists instead of Apple. And of course, those 37 might already be partly paid by Spotify anyway.

22*1.3 = 28.6

Re: Spotify to Apple: Time to Play Fair

#380

I agree that Spotify is taking the right stance. In their position, working on whatever team is responsible for fighting Apple, I would also do anything in my power to fight. Having said this, Apple can do as they please. They control the hardware, the OS, the App Store, and the user accounts. The same was true of Twitter who effectively squeezed access to their API until one or two desktop clients remained. The only…

I think you have made a great point. Until Spotify gives a 30% price break to Android, this just looks like a contest of who gets to keep the gouge.
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