Google admits Spotify pays no Play Store fees because of a secret deal | TechCrunch
Google admits Spotify pays no Play Store fees because of a secret deal | TechCrunch
Google during a testimony in the Epic vs Google trial said that a deal with Spotify allows the audio company to completely bypass Play Store fees.
I’m not a big fan of the high fees, but I’m even less of a fan of big developers being treated differently than the little guy.
Some banks do this *** too. The more money you deposit, the less fees you pay. Because 'premium customer' and all this.
Some banks? No. All banks.
Even credit unions do this. They may not have as many or as expensive fees as regular commercial banks but they still have fees and certain features aren't free. If you deposit $100,000 (or more) you'll find that a lot of those fees get waived, your interest rates will be better, and they will generally treat you better than the peasants with like $5,000 in their savings.
It's just another advantage that the rich have over every day people. Most of them take these things for granted or don't think they matter in the slightest. It never occurs to them that regular $3 fees or occasional $25 fees can have a huge impact on the poor and the middle class.
Full Disclosure: I work for a bank.
If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem
Agreed, but at least that is an upfront rule that technically applies to anyone with X amount of money. This is some back room handshake shit.
I’d be better if Apple / Google lowered their fees based upon how many installs anyone hit. At least it would apply to everyone, not just a couple of billionaires scratching each other's backs.
Yes. I know a bank where you're trading fees are lower or even zero, depending on the size of your share portfolio.
I'm gonna go out on a limb and say I think this is done to prevent anticompetitive issues. If Google were to profit off of both its own product (youtube / yt music) and also require its competitors to pay it a % of revenue, it would potentially open them up to more anticompetitive lawsuits.
And Spotify pass these savings onto the artists, right?
In effect, yes. Given that ~70% of revenue goes to rights holders, making the amount of revenue bigger by not paying 30% of subscriptions to Google, the savings are passed on to rights holders.
70% of revenue goes to rights holders.
Thus could mean that 69% of revenues go to rights holders A and B and 1% of revenues are spread between holders C - Z.
According to this random site with no sources the ranking is: Napster, Tidal, Apple, YouTube Music, Deezer, YouTube, Spotify, Pandora.
Better be, but don't be optimistic as they are called capitalist. You know what they love and hate.
No fees when users choose to pay via Spotify (which had been the case and only option since the beginning, until User Choice Billing was implemented).
If users choose to pay with Google Play Billing, Google keeps 4%.
Even so, what I find hypocritical is that Spotify got this deal and seemingly agreed to keep it under wraps, without advocating for it to be extended to all other music streaming services in the platform.
Because... having a deal with the platform holder that gives it unfair advantage over the competition is exactly what they accuse Apple of doing with iOS.
Sauce: https://www.theverge.com/2023/11/20/23969690/google-spotify-android-billing-commission-secret-deal
4% is basically just the payment processing fee (averaged out, since it's slightly different for every transaction). Spotify has to pay that regardless of how you pay.
Didn't Spotify join Epic's side in the Epic v Apple lawsuit over the app store?
The game is rigged
And we're the pawns
Bold of you to consider yourself a pawn in this game.
Pawns? I don't know if we worth that much.
We're totally screwing the artist, so we'll give you a cut if we don't pay any gees.
Yea no shit, idk if it's just for my region or what, but Spotify does not manage their subscription through the play store. Makes it more annoying to cancel it too, which the execs at Spotify probably see as a plus.
Kind of weird, considering they're a major competitor, but so what? Why is this something they need to "admit"?
Netflix makes heavy use of Amazon Web Services, specifically S3 Buckets. I’m sure there’s a special deal worked out with them as an anchor client.
Malls do the same thing. While they’re not in direct competition in the same sense as Google/Spotify or Amazon/Netflix, some stores don’t even pay rent in a mall because it’s expected that they’ll drive traffic to the rest of the stores. 90% sure Victoria’s Secret, Macy’s, etc are some of these anchor stores that very often pay little or negative rent due to the sheer revenue generated by other avenues.
What alternatives do you guys use besides Bandcamp? I am open to paying a sub as long as the artist is getting a decent cut.
Buying the music and selfhosting a streaming server is an option, though obviously not for everyone
As a Spotify user, I'm not really ok with how much they pay artists... But I don't use Spotify for "streaming" even though I stream a lot from them, I use it to discover new music, find obscure bands, their algorithm is amazing at that.
I could easily selfhost as you suggested, but then it would be my own music bubble.
I go to concerts and buy merchandise as much as possible when I want to support an artist.
7digital has a reasonable selection, but it's not all available lossless, which would be almost incomprehensible in 2023 if it wasn't for the fact that we're talking about the music industry.
Im not really sure what cut 7digital gives to artists either
Apple Music pays more than Spotify. It's probably still not "decent", but it's more.
NetEase Music. It's a spotify clone from China, and the VIP version costs like $1.20 a month.
It doesn't spy on your phone and requires zero permissions (I've tested this extensively), but you will need a VPN set to China, Hong Kong or Taiwan for it to work (assuming you don't live in either place).
Idk if Bandcamp is better, but there I buy my beloved albums with a big tip. The only thing I dislike is many artists default to PayPal for their merch. Ah, and they got owned by someone like Tencent or Epic?
Its not a bug, its a feature. The end game has lots of backdoor deals.
This is the best summary I could come up with:
The details surfaced today after Google requested the court to keep the specifics of its deal with Spotify sealed earlier in the month.
This fee could be reduced to 11% due to programs like user choice billing, which allows developers to use their own or third-party payment solutions.
Earlier this month, The Verge reported that the search giant offered Netflix a deal in 2017 to just pay a 10% fee on Play Store for subscriptions.
Last month, the Mountain View-based company reached a settlement with Match Group to let the dating app giant use third-party billing solutions on the Play Store.
Match Group’s rival Bumble was part of the user choice billing program pilot started in November 2022.
Epic, however, rejected Google’s offers to adopt user choice billing and went to trial earlier this month.
The original article contains 382 words, the summary contains 135 words. Saved 65%. I'm a bot and I'm open source!
As someone who have distributed on all platforms, Spotify is still the best. Sure it doesn't pay that well, but it does enable your songs to get discovered and played
This is incredibly off topic here considering the fact we're mostly talking about Google and the company giving a market advantage to companies that could cut them some "deals"
Rare Epic W
So they don't pay fees, they dont pay artist and they never made a Profit. But for some fucking reason are allowed to dictate the music industry.
For anyone reading this, that still uses Spotify, a big fuck you from the heart of an artist!!! You're the reason that abominations like Spotify are able to continue....