The real loser is Spotify
Nominally, what happened here is Taylor Swift took on Apple and Apple surrendered. But the real loser is Spotify and other pure-play music streaming services. The basic issue is that any deal a streaming service can make with artists, Apple can make a better one. If artists want to be on a free service that maximizes audience size, Apple can do that. If artists want to be on a pay-only service that maximizes short-term revenue, Apple can do that. If artists want it to be that songs only play if you're holding your phone in your left hand, Apple can do that too. What Apple needs out of streaming music is:
- Artists that people want to listen to
- Revenue that roughly covers operating costs