What does it say about Apple and its executives that Taylor Swift, in a social media post, was able to make it reverse its decision not to pay artists for the first three months on its newest venture, Apple Music?
Imagine being the top pop star on the planet, worth more than $200 million and just 25 years old, and having more business acumen than the world’s largest company by market cap.
With a few keystrokes on Tumblr — probably written on an Apple device — Swift told the world that her newest album, “1989,” would not be appearing on Apple Music, which sent Apple exec Eddy Cue backpedaling quicker than any politician.
A day later, Cue said Apple would pay royalties during the free trial period. “We hear you @taylorswift13 and indie artists. Love, Apple,” he tweeted.
With the June 30 launch date for Apple’s new paid streaming music service so close at hand, Cue almost slipped on a banana peel. Apple is now better situated to compete with Spotify, which does not have “1989,” and Pandora, which does.
Our fair-haired capitalist Swift is keeping her latest album off Spotify because they offer a free tier service, which, she said, cheapens her product. Swift’s music is on Pandora and Rdio.
One of the more disconcerting questions about Apple’s greedy misstep is: Why would it risk alienating its artists and content providers over 90 days of royalties?
That’s pocket change for Apple.
It’s almost as if there weren’t an adult in the room when Cue’s team first made its decision.
At the risk of a p.r. nightmare and lost content, their reward would be saving a few million dollars on royalties for the quarter. Swift just gave Apple’s management the MBA they sorely lacked.
Swift is not only a role model for teens (so far she’s kept things clean and stayed out of the gutter), she’s a great example for the business world, where capitalism has become some sort of naughty word.
Capitalism is not about getting rich or gaming others. Capitalism is about getting paid what you deserve.
You should reap what you sow. If you’re willing to work hard in America and you create profits, you should be paid accordingly.
One thing to remember is that even the best companies make mistakes, Apple included. Sometimes the “best” companies can get quite greedy — as was the case with Apple here.
Swift put it quite well. “But I say to Apple with all due respect, it’s not too late to change this policy and change the minds of those in the music industry who will be deeply and gravely affected by this. We don’t ask you for free iPhones. Please don’t ask us to provide you with our music for no compensation.”
It’s the classic debate that rages today between technology companies and content providers — they each think they are king.
But the fact is, content rules, because without it, there’s just dead air over the airwaves.
Swift knows this, and she knew she wasn’t being unfair to ask that she and other artists get paid for their work.
On Thursday, Swift made another savvy business decision. After hardball negotiations, she signed on to Apple Music’s new streaming service.