Music Industry
In a Nutshell: Apple has been fined £1.5bn by the European Union for failing to let users of music streaming apps like Spotify know that it was possible to pay for subscriptions outside of the Apple App Store. The complaint was brought by the Swedish streaming service Spotify who claimed that Apple was effectively operating a monopoly by ‘forcing’ iPhone users to buy subscriptions through the App Store and pocketing 30% of the cash for each transaction.
How to use this source: Apple’s conduct in this story is a good example of how companies reduce risk and maximise profits (Hesmondhalgh’s theory). By not informing users about the ways to pay for streaming services outside of Apple, the company ensured that all purchases for streaming services like Spotify went through Apple’s App Store, where it charges 30% commission to companies like Spotify. This means that for every subscription to Spotify bought through Apple’s App Store, Apple gets 30% of the money and Spotify gets 70%.
4th Mar 2024
This maximised the profits for Apple, while. A separate decision to host ‘third-party’ music streaming apps (like Spotify and Amazon Music) on iPhone reduces the risk of losing customers who might not buy an iPhone at all if they cannot listen to their favourite streaming sites.
Key Information to include: Apple was fined £1.5bn; they failed to inform users that it was possible to buy subscriptions to Spotify outside the App Store; this has been going on for 10 years.
In a Nutshell: Whilst K-Pop (e.g. BTS) and Latin music (e.g. Karol G) still produce music videos that rack up billions of views, the article argues that Western (e.g. American/European) Pop videos are dying. Beyoncé and Drake have said they are no longer releasing music videos at all; Taylor Swift’s ‘Anti-Hero’ (that has 1.4bn Spotify streams) only has 192m views, compared with pop successes of the past in the billions (Katy Perry’s ‘Roar’, 3.9bn; Bruno Mars’ ‘Uptown Funk’, 5.4bn).
The article blames a combination of factors, including reduced audience attention spans in the era of TikTok and YouTube Shorts, and the reduction in music video television channels (that might be seen as a symptom of the audiences turning away from Western music video).
How to use this source: The article argues that music video as a medium is changing and that stars are no longer as concerned with using music video as a vehicle for their star image. This idea ties in with Richard Dyer’s Star Theory, both with the star as a commodity, but also with the star as needing to seem ‘real’. Glossy music videos with high production values may showcase the star as someone to be aspired to, but a quick soundbite on Instagram or X about being snubbed by the Grammy’s does more to generate audience sympathy and make the star seem real.
5th Apr 2024
Key Information to include: Beyoncé is no longer releasing music videos; Dua Lipa, Ed Sheeran and Ariana Grande are struggling to get views of the music videos online (‘Houdini’, 93m views; ‘Eyes Closed’, 77m views; ‘Yes, And?’, 51m views); music video budgets are dropping —> five years ago, $30,000 would be the cost for one music video - now artists are expected to get three videos and promotional material out of the same money.
In a Nutshell: Universal Music is pulling the rights to ALL of its songs from TikTok over claims that the social media site will not offer a fair price for them. Universal has said, “TikTok is trying to build a music-based business, without paying fair value for the music.” TikTok denies this, claiming Universal is walking away from “a free promotional and discovery vehicle for their talent.”
The move means artists like Taylor Swift, Ariana Grande and the Beatles are no longer licensed to users for use in their TikTok videos.
How to use this source: This example relates very well to Curran & Seaton’s theory about power and control. Universal Music Group owns the rights to about 1/3 of the world’s music and wants TikTok to pay the same price other social media sites (like Instagram) pay. As Universal is so big and has so much control over world music, a decision like this can harm consumers and ultimately harm the Chinese-owned TikTok (which is already banned in several countries, including India, with is 1bn population).
31st Jan 2024
Key Information to include: Universal owns 1/3 of the world’s music; TikTok has 1bn users, but only accounts for 1% of Universal’s revenue (the money they make).
