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'Apple just f***** over online music subs for the iPhone' -- Last.fm co-founder on Apple's 30% cut
Speaking rather frankly on IRC, Last.fm's co-founder Richard Jones has condemned Apple's move to grab 30% of content-based subscription fees: "Apple just f***** over online music subs for the iPhone."Jones' apoplectic outburst is just one of many, too. Rhapsody yesterday said it won't bow to Apple's subscription policy, and CEO of on-demand music streamer we7, speaking to paidContent, thinks that the 30% share "makes music subscriptions economically unviable." If big-hitters like Spotify and Rdio can't produce the 30% that High Lord Jobs demands, how can they possibly continue to provide their services to iOS apps without increasing their price? The crazy thing is, because of Apple's price-matching ultimatum, everyone -- including users of other smartphone platforms -- will have to pay the higher price.
On another front entirely, according to some law professors quoted in the Wall Street Journal, Apple's move could even be kiboshed by antitrust and anticompetitive legislation. These could be interesting times indeed.
While leveraging its massive and wealthy userbase to get a slice of the subscription pie might've sounded great on paper, 30% might simply be too much to ask for. At the very least, it looks like Hulu, Netflix, Spotify, Last.fm and Rdio users are destined to pay a few dollars more per month. Or perhaps content providers will simply stick it to iOS and decamp to Google's dirty, bohemian app ecosystem.
Comments
17
Subscribe to commentsRollinsFeb 17th 2011 7:41AM
Incidents like this, along with the general disorganization of the Android platform, are why I truly believe Windows Phone 7 will eventually become the dominant smartphone platform. Apple needs to learn to play a lot better with others, or their ability to expand will eventually be dampened. Say what you will about Microsoft, but today's Microsoft wouldn't try to pull something like this (and, arguably, couldn't because of all of the worries of antitrust lawsuits).
Microsoft understands how to slowly build a platform over time; Apple's growth is far more centered on rapid spurts that take advantage of weaknesses in the market. That worked for the iPod for a long time, but Apple actually has competent competitors in the smartphone sector.
Apple still acts as if developers and businesses should worship Apple for giving them the opportunity to release things for the iOS platform. Conversely, Microsoft (and most of the other players in the market) acts far more gracious towards its developer and business partners. Eventually, that's going to bite Apple in the ass.
CHRISAKACEOFeb 17th 2011 7:59AM
I see apple has finally formed its Achilles heel.
Android now has the lane to take it over, unless another OS will do it first
JamesFeb 20th 2011 8:00AM
@CHRISAKACEO "Take over"?? Take over what? I don't see masses of people paying for magazine and newspaper subscriptions anyway. Those technologies are dead, and simply putting them on the iOS wasn't going to change that.
I see this as much about nothing.
David ChartierFeb 17th 2011 8:06AM
There is language in Apple's documentation that suggests streaming services might be excluded from paying the 30% cut. We (Macworld) have put in requests for comment on clarifying these boundaries.
Matt FryyFeb 17th 2011 8:14AM
The tech world needs more badass CEOs like Richard Jones to step up to Apple now they're on the other side of the 1984 fence.
Services like Last.fm are working hard enough to make money as it is without paying rent to Apple.
ragtagFeb 17th 2011 8:37AM
This leaves how much for the artists? As is some independent artists have been pulling their music from Spotify because they're only getting a few pennies for their music, even if it has been played thousands of times.
AndyFeb 17th 2011 8:54AM
Worth mentioning that Richard no longer works at Last.fm (and hasn't for some time), so it's his personal view - not that of Last.fm
Sebastian AnthonyFeb 17th 2011 8:56AM
@Andy Yeah, indeed -- I put 'co-founder' back into the title, just to make it clear that it's not directly Last.fm doing the cursin' :)
kellFeb 17th 2011 4:23PM
One rotten Apple spoils the whole barrel.
boynasFeb 17th 2011 9:29AM
Walmart story all over again!
JimFeb 17th 2011 10:29AM
This is publisher BS - Last.FM is the worst as far as paying artist royalties. They're pretty much stealing their music:
http://www.informationisbeautiful.net/2010/how-much-do-music-artists-earn-online/
To make a minimum wage:
- on iTunes: sell 1229 copies
- on Last.fm: 1,546,667 streamed plays
When you hear Apple is unfair - think: Unfair to whom?
therealmorrisFeb 17th 2011 6:47PM
@Jim Of course the royalties should be different. As you said, Last.fm is only streaming, and even then it's only in a radio stream, you can't generally stream specific songs. iTunes and other stores are selling you a full DRM free copy of the song, the two have totally different values and the royalties reflect this.
MitchRapp81Feb 17th 2011 12:34PM
30% just to allow your music to be sold ... that's hilarious.
MpmcfarlaneFeb 17th 2011 5:42PM
Apple's products are the best in the industry: easy to use, elegant, beautiful, etc. The only thing holding them back is their policies: 30% cut, no jail-breaking, rejecting every app they can, etc.
PonTelonFeb 17th 2011 8:22PM
I foresee it taking the likes of Netflix or other companies standing up to Apple and either pulling their own apps, or switching to html5 for Apple to realize how terrible of an idea this is.
Either that, or an law suit. (Nevermind, that'd not change anything. It'd be 5 years before they wrote a big fat check and kept doing it anyway)
bingFeb 18th 2011 3:57AM
Sounds smart to me - Same reason you pay four times what is normal for a hotdog at a theme park - Create a system where people choose your market over others for reasons other than just price (quality, service, ease of use, etc)and then do what you want
TamaraFeb 18th 2011 9:02PM
Boycott everything Apple. Apple make vastly inferior apps to their competitors and to top it off charge content suppliers ridiculously high fees yet about 20% of people are stupid enough to buy Apple. Amazing.