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Vertical integration gives Apple Music an advantage over Spotify because it allows Apple to control all aspects of its music service, from the creation of the music to its distribution. This means that Apple can ensure a seamless user experience across all its devices and services. Additionally, Apple's vertical integration allows it to bundle Apple Music with other services, creating a more attractive offering for consumers. Lastly, Apple's control over its hardware and software means it can prioritize its own services, like Apple Music, over competitors like Spotify.
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With recurring revenue and a "Benjamin Button" product, Spotify has all the ingredients of a trillion-dollar firm. However, it has a valuation of just $47 billion. Apple Music has most of the music available on Spotify, along with the advantage of vertical integration. If Spotify and Netflix merge and acquire Sonos for vertical integration, they could control video and music and establish devices in America's wealthiest homes.
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What will the world of business look like after the coronavirus pandemic? The pandemic will accelerate every trend by a decade and redefine entire ind...
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