I don't understand this argument. Spotify is a service connecting listeners to the artists and infrastructure and development of said service has its cost whereas Google/Apple charge fees for the app store which Spotify subscription does not require.
So, Spotify is allowed to charge 30% for access to the market it has created, but Google and Apple are not?
An app store costs money too - the creation and maintenance of the billing platform/API, bandwidth, human curation, cross-device storage of saved configurations, user acquisition, etc.
What makes musicians so different from software developers that it's perfectly acceptable for Spotify to take such a large share of the revenue their music has earned?
(To make my own position clear, I don't think any of them deserve 30%)
Because Apple and a Google created a market where there was none. It basically impossible to make money from selling mobile apps to consumers before them.
Had Verizon singlehandedly created the internet and had no real competitors they might have been able to tax it’s usage. Thank God that did not happen, though…
I am fine with them charging whatever they want, as long as they don't prevent competitors from opening alternative markets. The problem is the monopoly, not the price.
Spotify has very low margins so it's hard to say 30% isn't fair. Any lower they'd have trouble paying their costs. Streaming in general helped the music industry revenue grow. You can say Spotify might be bad at business for not making much money on a 30% cut, but overall they seem to be serving decent value for money to the copyright holders and customers. Before streaming, the overhead was a lot higher, with the retail distribution chain taking a comparable cut.
> Verizon's infrastructure costs money, too - should they also be eligible for a 30% tax?
> The data will be transmitted through Cisco routers or Nokia's BTS - it costs a lot of R&D to develop those
This is a novel idea. Verizon and Cisco could charge a price above their cost. They could call this a "profit margin". You might be on to something here.
Apple/Google app stores are a service connecting users to app creators, and all the points about Spotify also apply to Apple and Google. In the case of Apple, they literally created the entire market, from the CPUs all the way up.
If 30% is too much, publish your content as a web app. If you want to play in the walled garden, pay the cover charge.
I think the biggest difference is that Spotify isn't a monopoly at the end of the day - it's a popular service. A lot of people still use different methods to listen to music like YouTube, iTunes, bandcamp and a plethora of others. If you, as a band, want to make money on your music you aren't required to do business through spotify, it's a choice that most people make because it's free money.
On the other hand if you want to write an app for a mobile device you're, realistically, either going to write it for Android or iOS. On the Android side you can distribute it as an apk assuming you can handle the cost of writing self-updating code - but on the iOS side you're hooped. Mobile devices are a part of modern life, the fact that one company dominates the market (and another company takes the remainder) leaves the market extremely unhealthy.
Google Play, which charges 30%, is not a monopoly either. Nor is Steam. The Microsoft/Sony/Nintendo scene is a bit less clear, but they charge 30% too.
Musicians have about the same freedom in this respect as any application developer, practically speaking. AKA, they're just as exploited (if not moreso, see other comments about how musicians are also being screwed over by studios).
Yep. One major difference is that with Google/Apple (and also Steam I believe), app makers can at least choose the price of their apps and services themselves, and they know how many units they sell. If Google/Apple are charging you 30%, just increase your price.
With Spotify, however, musicians can't choose how much their music is worth, and the payment of royalties is also not exactly transparent.
But the very concept of being an mobile app developer was brought to life by Apple, and later Google. 15 years ago, you could not really be a pro app dev. Now, you can, but with a 30% cut. You are strictly better off. And if you think the 30% is too much, do something else.
These companies created something that grew into a foundational element of modern life in about a decade. That’s amazing and should be awarded with trillions of dollars. The market should reward this corporate behaviour extremely well, and punish the IBMs and GEs and Boeings harshly.
As an aside, Apple et al are also not resting on their laurels, and keep pushing the envelope. My 2 y.o. + iPhone is literally better than on the day I bought it. I’m more than happy to pay more for apps / subs to get this.
The developer who made a useful website with a link to their paypal has been mostly obsoleted by app developers. Small tool development isn't a novel creation of modern mobile devices - it's just the packaging of these into bespoke binaries that have highly regulated distribution channels. A cynical person might assume that part of the reason Apple hated flash so much is that it threatened to stunt the upcoming app market. To lend some credence to this position, things like Kofi have taken off in recent (on my scale) years as HTML5 gained enough traction to essentially duplicate the functionality of flash without any of the security issues - I personally think this is what led to the feature to save websites as apps on iOS and that is something that doesn't threaten Apple much with their network advantage, but has the potential to cut into their revenue if it gets popular enough.
The problem is when that innovative company becomes the new IBM/GE/Oracle and starts treating every client as nothing else but a revenue stream instead of focusing on creating new and innovative products. I don’t think Apple/Google are there yet but they are clearly moving into that direction.
Apple and Google are responsible for 99% of all mobile software distribution[1]. They both monopolize the mobile app distribution market, as well as the mobile app payment markets.
Both firms leveraged their dominance in the mobile OS market to dominate the mobile app distribution market, and then they leveraged their dominance in the mobile app distribution market to dominate the mobile app payments market.
When talking about monopolies, the working definition is firms that have significant and durable market power such that they can set prices and exclude competitors[2]. Both Apple and Google fit that bill for the mobile OS, app distribution and payments markets. Whether you use the words monopoly, duopoly or cartel to describe them doesn't really matter, because all of those terms are accurate descriptors.
This isn't an Apple/Google/Spotify thing, it's a service thing.