BIG TECH & BIG MUSIC ARE FRENEMIES.
We constantly see the tug of war between tech and music industry giants.
Though both industries work together to achieve astronomical profit, the two frenemies are always shoulder-checking one another.
THE GREAT DISRUPTER
As an increasingly essential part of the population’s daily life, we have yet to accurately measure the tech industry’s power. Tech giants recognize how the industry's rapid evolution continues to supply society with new conveniences and addictions. Unlike other industries, it is the unknown in tech that keeps its market tapped in. Society’s allegiance to technology relies on our general confusion about what’s to come. This strange juxtaposition puts tech giants in a unique position of power. Other major industries must navigate its expansion around the whims of technology.
The unknown factors in tech are what keep consumers tapped in.
MUSIC’S LONG-STANDING POWER
The music industry runs on systems and traditions that have solidified its position as an institution of power within entertainment. And although it sometimes feels like the Wild Wild West, the giants of the music industry have strategically remained the same for generations. The rules and corporate practices initially set in place have been pretty consistent and only allow for minor advancements to remain relevant with the times.
Additionally, ‘Big Music’ has linked arms with financial and legal institutions, thereby furthering its global dominance across various markets. Those relationships go waaaayy back.
FINDING MIDDLE GROUND
Tech giants push the envelope against institutions. Instead of clinging to relationships, tech has no problem introducing itself as the new and ‘cool’ norm. The music industry fights those new norms by using its long-standing institutional success to remind tech companies that many of their kind have come and gone in the past. When that does not work, the music industry will make concessions for tech’s demands – so long as there are rules that keep tech from calling all the shots.
WHY THE FIGHTING?
Ultimately, each industry is pining for market share. We’ve seen the battle between Universal Music Group (UMG) and TikTok. The tensions between digital service providers (DSPs) and music publishing companies thicken as complaints about pro rata royalties become commonplace. And of course, we cannot disregard industry-specific businesses fighting amongst themselves. For example, record labels are beefing with Live Nation, and Instagram is throwing shade at Apple iOS. In almost every argument, either ‘creators’ or consumers are at the center. We are the rope they are tugging – at least that’s how it appears on the surface.
Creators are the supply. Consumers determine the demand. So, as bargaining points in these negotiations, consumers and creators are often left to deal with the outcomes that best serve the ‘big’ guys.
Creators are the supply.
Consumers determine the demand.
APPLE VS. INSTAGRAM
You know the beef has gotten out of hand when it reaches your inbox.
Instagram blasted Apple iOS for charging Instagram users a 30% service charge for content ‘boosts’.
Instagram allows business accounts to turn their posts into paid advertisements that will reach targeted audiences. Instagram already has a set pricing scale for this service. But Apple wanted to get to that paper too. So, as of February 2024, Apple began charging a 30% service fee for each post you “boost in the Instagram iOS app from your iPhone or iPad.” Pissed, Instagram went as far as emailing users directions on how to avoid this service charge. They advised users to boost posts directly on Instagram.com instead of through the iOS app.
This looks like an improbable win for Instagram. iPhone users prefer the iOS app. Apple understands the value of convenience, and they charge for it. People rely on Apple’s software for their daily leisure and responsibilities. I’m willing to bet more than half of you are reading this article using iOS software. Still, Instagram knows 30% is steep for a completely avoidable charge.
Apple understands the value of convenience,
and they charge for it.
APPLE IS OUT FOR THAT CASH
Apple Inc. isn’t out for Instagram specifically. They apply additional charges for high-revenue services on other apps as well. Even though YouTube didn’t send me an email, I am aware that ‘Channel Memberships’ are considerably cheaper if you do not sign up using the YouTube iOS app.
A paid Channel Membership reveals another tier of exclusive videos, community posts, and live chats with a YouTube creator. If my favorite YouTuber decides to have a $4.99 monthly membership, a portion of my membership goes to the creator; the remainder goes to YouTube. If I sign up for it using the YouTube iOS app on my phone, the price may increase to $7.99 a month, with the additional $3.00 going straight to Apple. I imagine this is on top of whatever Apple is paid to host YouTube on their software.
For a consumer, that extra $3.00 can make a difference in our world of monthly subscriptions. All you gotta do to avoid this charge is cancel your membership from your iPhone and re-join on your computer before the next billing period.
I know this because I canceled my YouTube membership from one creator intending to re-join on the web. But my laziness has become Apple’s power move because I still haven’t signed up on the website. Now the creator and YouTube lose out, and I’m in the wrong.
This scenario demonstrates Big Tech’s ability to put consumer convenience against fan loyalty. As we see with music streaming patterns, convenience has displaced loyalty and fandom.
My laziness became Apple’s power move.
STEPPING INTO THE CREATION PROCESS?
Let’s just say tech has big feet.
According to Daily Music Data, Apple Music pays a 10% higher royalty rate for tracks mastered in the company’s Spatial Audio mastering format. So if you are an artist who will automatically get more money by using Spatial Audio over another mastering format, what will you choose?
Daily Music Data pointed out that these higher royalties can turn into an extra several thousand dollars in an artist’s budget. So now, choosing Spatial Audio can lead to higher-quality music, dynamic visuals, and accelerated growth.
Apple is not only concerned with increasing Spatial Audio usage. They just recognize that incentivizing its usage can also transform the music industry by creating a sound standard that Apple Music competitors may feel compelled to emulate. If that happens, Apple’s partner in formulating Spatial Audio, Dolby Atmos, can also become a key player in the marketplace.
Moves like this allow tech to influence music consumption experiences.
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