Spotify targets Apple’s 30% cut - it refers to as a ‘tax’ - as a key element of its complaint but also references rules about how Apple restricts third-party app developers from communicating with customers. The company filed an antitrust complaint against Apple back in 2019, in Europe.
This would be impossible given the tiny margins on which streaming music services operate. It says that while Apple can offer subscriptions within the app without any penalty, Spotify would have to give Apple 30% (or 15% from year two) of its subscription revenue if it did the same. Spotify is unhappy with what it considers to be unfair competition from Apple Music. He claims that Apple doesn’t care about consumers, courts, or the law – only its own interests … Background Now it’s perhaps YouTube and TikTok.It’s not just Elon Musk using Twitter to complain about Apple (even if Tim Cook is now his new bestie): Spotify CEO Daniel Ek has tweeted a lengthy thread about his views on the Cupertino company. “Throughout the existence of Spotify, we have always heard of competitors, and it was always the sort of big scary wolf, whether it was Apple or Amazon in the past, etc. “TikTok obviously, is a formidable competitor, I think, to any platform in the world today, no matter what field you’re operating in,” he said. Other notes: CFO Paul Vogel predicted “a meaningful improvement in the operating loss in 23 relative to 22” while Ek was unfazed by potential competition from TikTok. “And obviously, the big counter to that would be: does it mean that you can sustain yourself or is it more one-hit wonders? And I think you’re seeing a little bit of both happening in the music industry at present.”
“There is a lot more artists that are mattering now than perhaps ever before,” he said. He promised “an intense focus on efficiency” as Spotify charts its next stage of growth.Įk later played a straight bat to a question about UMG’s desire to rework streaming’s economic model. And in hindsight, I probably got a little carried away and overinvested relative to the uncertainty we saw shaping up in the market.” “But things change, and the macro environment has changed significantly in the last year. “I still believe it was the right call to invest, and I would do it again,” Ek told analysts in his opening remarks, saying he still believes that those investments will pay off in the coming years. Regrets? He had a few, but Spotify CEO Daniel Ek also defended his company’s spending decisions in 2022 during his company’s quarterly earnings call yesterday, following its recent round of layoffs.
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