Apple Trying to Eliminate Spotify's Free Tiers(Update-Spotify'Hits At Apple Tax)

detroitwalt

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These cats bout to be under investigation again.

Apple has been using its considerable power in the music industry to stop the music labels from renewing Spotify’s license to stream music through its free tier. Spotify currently has 60 million listeners, but only 15 million of them are paid users. Getting the music labels to kill the freemium tiers from Spotify and others could put Apple in prime position to grab a large swath of new users when it launches its own streaming service, which is widely expected to feature a considerable amount of exclusive content. "All the way up to Tim Cook, these guys are cutthroat," one music industry source said.

Sources also indicated that Apple offered to pay YouTube’s music licensing fee to Universal Music Group if the label stopped allowing its songs on YouTube. Apple is seemingly trying to clear a path before its streaming service launches, which is expected to debut at WWDC in June. If Apple convinces the labels to stop licensing freemium services from Spotify and YouTube, it could take out a significant portion of business from its two largest music competitors.

http://www.theverge.com/2015/5/4/8540935/apple-labels-spotify-streaming
UPDATE 5/7/15
spotify.png


Spotify, which is widely believed to be behind the antitrust allegations that led to both EC and DOJ investigations into Apple, has now added a fresh complaint. The Verge reports Spotify is complaining that the 30% cut Apple takes from in-app Premium subscriptions in the iOS app amounts to an “Apple tax.”

Apple charges a 30 percent fee toward any sales through its App Store, and that includes subscription services. That means if Spotify wants to sell its premium subscription service — which usually costs $9.99 a month — through the App Store, it has to raise the price 30 percent higher to $12.99 to pull in the same revenue, while Apple can still offer Beats at a lower price. Spotify and many others in the music industry believe Apple’s App Store tax gives them an unfair advantage over the competition.

Apple had reportedly hoped to offer its own service for $5/month, but was unable to secure the necessary deals from music labels. A revised attempt at hitting $7.99/month also reportedly failed for the same reason, even though Google Play offered initial All Access Signups for a $7.99 locked in.

Apple is expected to formally announce its streaming music at WWDC as part of an iOS 8.4 update that will see it integrated into the existing Music app, with access on Macs via an iTunes update. There is some doubt as to whether the service will actually launch at the point at which it is announced.

Looks like the industry won't let history repeat itself by giving in to Apple as easily as they did with iTunes.
 
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satam55

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Folks keep hyping up Apple's relaunch of Beats Music, but I been wondering how the fukk Apple is gonna compete with Spotify's Free tier.

Well it looks like their just gonna try & strong arm them.


@BarNone
 

No1

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Folks keep hyping up Apple's relaunch of Beats Music, but I been wondering how the fukk Apple is gonna compete with Spotify's Free tier.

Well it looks like their just gonna try & strong arm them.


@BarNone
Tidal will be blamed for this :laff:
 

Leasy

Let's add some Alizarin Crimson & Van Dyke Brown
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That beats app shyt worst than Tidal and Spotify they are pulling all stops to compete. This company going to start patented streaming shyt lol.
 

Blackout

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As I've said since the beginning, Apple is going for the monopoly. However, the people that run apple are a different color from Jay-Z, so of course no one going is going to say anything to them.
This.

Obvious monopoly
 
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