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A comment on Google: “Any harm Epic has suffered is not irreparable and is of its own making”. Parent comment

Re:Google: “Any harm Epic has suffered is not irreparable an... by ericmay on Saturday October 03, 2020 @10:25AM (#24672281)
Why do we have this assumption that Apple and Google can only make the same margins as Spotify? What if that 30% means that since they have a larger company they wind up with the same margins as Spotify or even worse? What if Apple Music making money subsidized other free software that Apple releases like Numbers and Pages?

30% is the reward they get for making great business decisions, and as far as competition goes I don’t really think Apple is that serious. Apple Music is an evolution of iTunes, which has been an Apple product for 20 years.

If Spotify wasn’t profitable it wouldn’t exist. Apple’s platform makes that business possible on mobile. If Spotify’s investors weren’t content with making the money they are making now, Spotify can fold up. There is no reason that they have to make a “fair” profit or the same amount of money as Apple Music. None.

When you look at the App Store ecosystem it is incredibly healthy and competitive. There are numerous music apps, all making a ton of money. I have no sympathy here.

[ Parent | on HN ]
Re:Google: “Any harm Epic has suffered is not irreparable an... by sharpneli on Saturday October 03, 2020 @10:36AM (#24672327)
Let’s say the music business demands $8 per month per user for licensing fee. Apple can sell their music service for $9.99 and get some nice profits. Spotify cannot sell at $9.99 with an in app purchase as the remaining money doesn’t cover the license costs.

This is the very reason Spotify charges more (if they even allow it anymore) when purchased as an iap.

Apple likely has not stomped down on it because that one would be rather clear cut case for courts.

[ Parent | on HN ]
Re:Google: “Any harm Epic has suffered is not irreparable an... by ericmay on Saturday October 03, 2020 @01:38PM (#24673497)
And that’s fine. Companies don’t need to charge the same prices or have the same profit margins.

Should AWS have to sell at cost because Amazon uses it for a cheaper price than other retail websites?

[ Parent | on HN ]