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Spotify doesn't have to sell you a phone and doesn't need thousands of developers (including Apple and Google) to build apps for that phone to make it a viable purchase option. Google famously refused to develop a YouTube app for Windows Phone and refused to allow Microsoft's home built app to connect to YouTube.

Just because it's possible to compete in one product area doesn't mean its possible to compete in all of them. A smartphone experience is networks on networks on networks to the point that breaking in is next to impossible despite the fact that one of them is based on an open source OS.




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