- Oct 27, 2017
The issue is the fact that Apple has a competing product that because of its nature as a 'first party' product does not have the profitability issue that Spotify does on their platform. All of the other talk Apple tries to push to deflect from this is rather immaterial.
That misses the point I was making. I was making the point that you can't complain that Netflix only pays $99 because Apple literally wouldn't sell as many devices (especially Apple TV) if Netflix wasn't available. They're bringing Apple revenue in more than one way.
The flip side of that is by charging 'industry norm' Apple makes more margin due to not needing to pay anyone a cut. This allows them to pay artists more, which puts pressure on negotiating rounds to increase payouts, which can make '$9.99 but pay 30% to platform holder' unsustainable, but '$9.99 and keep 100% yourself' ok.
also the "but keep 100% for yourself is doable" is disingenuous, but I think you know that.. if it weren't... they wouldn't currently be suing the recording industry. Let's not for a moment pretend that Spotify is anywhere near profitable, NOR pretend that that is even mostly the App Store cut's fault.