Apple and Spotify Raise Their Fists Over Music Streaming

The music streaming market erupted yesterday when Spotify accused Apple of using the App Store approval process as a weapon.

Spotify claims that Apple will only give their update the green light if they use Apple's billing system. Apple has been known to take up to 30% on every purchase without an alternative. It’s a considerable sum, so tensions are understandably running high.

"It continues a troubling pattern of behavior by Apple to exclude and diminish the competitiveness of Spotify on iOS and as a rival to Apple Music, particularly when seen against the backdrop of Apple's previous anticompetitive conduct aimed at Spotify."

 Let’s Take a Step Back

Some may point out that Spotify is brewing a storm in a teacup. Under the current arrangement, Spotify is unable to advertise a website discount on Apple's App Store or in the iOS app. Spotify is free to advertise everywhere else. However, considering that Apple offers access to over one billion iOS devices, surely 30% is a small price to pay? Even the infamous 30% charge drops to only 15% after 12 months.

The harsh reality is if your business resides on somebody else’s playground, you have to play by their rules. Spotify should willingly pay-to-play given the potential revenue. As for Apple, they must absorb the update and hosting costs. They must offset those expenses somehow.

On the other hand, Apple’s actions might be seen as childish. They are holding back the competition, thereby bettering chances for their own music streaming service, Apple Music. I agree with this view. Not only that, I think this stratagem is counter to recommendable digital strategy.

Apple should invest time and resources into improving their products instead of stemming the tide. Spotify is competitive for a reason. Find out why and one-up them. That’s how disruption works. Wasn’t this the way Apple used to do things before they reached the top? 

Apple Reckons with their History

This battle is reminiscent of the browser wars back in the 90s. At one point, Microsoft’s Internet Explorer beat Netscape Navigator, only to have Firefox carry on the fight. Similarly to Apple, Microsoft’s Trojan horse was the presence of its far-reaching home computers. Apple is not innovating like Microsoft did then. 

This recent maneuver calls attention to a change in Apple’s ethos. In the past there were associated with innovation, risk-taking, and sleek products. Contrary to this, Apple Music felt bloated and was crawling with bugs. As for the music selection, it concentrated on mainstream artists such as Taylor Swift, Katy Perry, One Direction, and Miley Cyrus. Any attempts at locating niche artists or playlists were in vain. All this offered early signs of illness.

The Wall Street Journal recently reported that the company discussed buying Tidal. This would secure artists such as Rihanna and Kanye West, which sounds great but would also alienate niche music fans that are averse to Top 40 music. Apple’s actions and speculations raises questions.

Someone Didn’t Get the Message

The digital age is about collaboration and opening up ecosystems rather than locking them down. Apple’s dearth of innovation in the last five years is crippling them. Their attempts to fragment the music market and force users into Apple Music demonstrate just how out of touch they’ve become.

"You know there's something wrong when Apple makes more off a Spotify subscription than it does off an Apple Music subscription and doesn't share any of that with the music industry.”

Apple needs to do some soul searching. They should ask themselves why they were tardy to music streaming. Of course now they find themselves playing catch-up using what by Apple’s standards could be considered cheap tactics

In the end, the choice in music or streaming service is purely the buyers. Whichever side of the fence you find yourself on, you are in the midst of a war.

There are two sides to every story. I would like to hear your thoughts and opinions about this latest fallout between Apple and Spotify. Please share below!

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