We’re talking Apple Music because the news is streaming in:
The FTC is reportedly looking into complaints that Apple’s treatment of rival streaming-music apps in the App Store is violating antitrust law. That’s according to Reuters, which cites unnamed sources who say the Federal Trade Commission has not launched a formal investigation yet, but has met with “multiple concerned parties.” One of those parties might be Spotify, which last week reportedly urged people not to subscribe to its service via the App Store because they would end up being charged more — $13 a month vs. the $9.99 a month Spotify charges on its own site — due to Apple taking a 30 percent cut.
Apple recently unveiled its $9.99-a-month, much-hyped subscription music service. Its competitors include Spotify and Oakland-based Pandora. Tyler Goldman, North America CEO of Deezer, another service, told Reuters: “You can either raise your prices and not be competitive with Apple’s price, or you can have no margin.”
This news isn’t the first mention of the FTC and Apple Music dealings. In May, the Verge reported that the FTC and the Department of Justice were looking into whether Apple was pressing music labels to urge Spotify to kill its free, ad-supported streaming tier. Apple Music is not offering a free tier except for during a three-month trial period.
But we’ve talked about how Apple is looking to differentiate itself from the other streaming services: exclusive and original content. Besides exclusive songs from artists, Apple also is making music videos. Pitchfork says Apple Music’s newest video, M.I.A.’s “Matahdatah Scroll 01 Broader Than a Border,” is out today.
Photo: Apple CEO Tim Cook hugs Jimmy Iovine, who appeared on stage to help introduce Apple Music at the Worldwide Developers Conference, June 8, 2015, at the Moscone West convention center in San Francisco. (Karl Mondon/Bay Area News Group)
