Spotify CFO on Apple: ‘It’s not a software culture: it’s a hardware culture’
Posted on: 17 septembre 2018, by : Stuart Dredge

Spotify’s chief financial officer Barry McCarthy delivered a blunt rejoinder to a question about the threat posed by big-tech rivals like Apple, during his interview at Goldman Sachs’ Communacopia conference on Friday.
“I don’t think anybody is making a bigger investment in tech required to be successful in our business than we are,” he said, before talking about the time, in his previous job at Netflix, when an announcement that Wal-Mart was getting into online video sent Netflix’s share-price plummeting.
“Wal-Mart never had more than three people working on home video. They could have been the world’s largest player, but they weren’t,” said McCarthy. “Apple has more than three people working on music, but they have considerably fewer people working on music than we do. And they have fewer engineers still, and it’s not a software culture: it’s a hardware culture.”
McCarthy admitted that Apple’s iPhone ecosystem is a “competitive advantage” over Spotify, but said his company’s strategy is “to build a bigger ecosystem in total than their phone, with partner companies like Samsung, Microsoft, and the Android operating system – which is substantially bigger outside the United States than iOS… and have our success across those platforms enable us to compete. If we do that well, I think our business will prosper. If we don’t? Roadkill.”
McCarthy also jabbed at Amazon – “They don’t really care how engaged you are in the music service as long as you become a Prime subscriber… If all you care about is price, you don’t really care about the music, they probably look like a pretty good value proposition to you” – and suggested that smaller music-streaming services face a murky future.
The post Spotify CFO on Apple: ‘It’s not a software culture: it’s a hardware culture’ appeared first on Music Ally.
Source: Music ally

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