When Spotify He learned that Apple was launching a music streaming service and said he was not concerned at all. In fact, the king of music streaming service now has more users than ever, something to which Apple Music has contributed, the service launched by those in Cupertino now a little over a year ago. But this could change if the negotiations between Spotify and the record companies do not change direction.
The problem is that talks between Spotify and the three major record companies are not on the right track. The main reason is Apple Music, a service that pays a bit per hundred higher than any competing service and that, logically, draws the attention of record companies, who may end up opting for Apple's service whenever exclusive content has to be released.
Spotify wants to pay record companies 5% less
Apple Music is paying 58% of benefits to record companies after the three free months offered by Apple's service. The three biggest labels - Sony, Universal Music Group and Warner Music Group - want Spotify to match Apple's offering, but the veteran music streaming service seems to disagree.
To make its service profitable, Spotify wants drop from the 55% that pays the record companies to 50%, which would be 8% less than what Apple Music offers. On the other hand, you also want to get exclusives with the artists, but this will not be an easy task if we take into account that 8% difference.
In any case, although the negotiations between Spotify and the record companies do not go through a good time, both parties remain optimistic, which will most likely end the streaming music service matching Apple's offer. The downside for the Swedish company is that doing so will make your service much less profitable than you expected.
