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Pandora, Spotify, and Apple Climb App Revenue Charts as Customers Sign Up Via In-App Subscriptions

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In a first for streaming music, Pandora, Spotify and Apple's Beats Music are among the leaders in App Store revenue as customers increasingly subscribe to the services using in-app purchases. According to data provided by App Annie and published by Billboard, the music services were among the top ten revenue generators for all non-game applications in the iOS App Store during the month of August.

pandora_feb14_update-800x473.jpg
Internet radio service Pandora lead the trio, maintaining its number 2 spot in iOS App Store revenue. Spotify climbed seven spots from number 14 in July to number 7 in August, while Apple's Beats Music moved up two spots to slide into the top ten at the number 9 slot.

All three services offer free apps that allow customers to purchase a subscription using an in-app subscription option. Pandora offers access to its paid Pandora One plan ($4.99 monthly), while Spotify allows users to pay $12.99 a month for its ad-free, offline premium subscription. Beats Music provides two options, allowing users to choose between $9.99 monthly access or a yearly subscription for $99.

Apple introduced in-app subscriptions a few years ago to iOS 6. As part of the App Store payment process, the company takes a 30 percent share of all in-app subscription revenue.

Article Link: Pandora, Spotify, and Apple Climb App Revenue Charts as Customers Sign Up Via In-App Subscriptions
 
Article Link
https://www.macrumors.com/2014/09/24/pandora-spotify-apple-revenue/
Love Spotify. Has changed my habits forever.

[I'm sure other services are great too]

Just hope the artists can continue to afford to make great music.
 
had no idea Spotify offered it as a IAP Subscription. I got it through T-Mobile for the regular 9,99€ but getting it through T-Mobile gives me the change to use it without it being counted towards my data volume. its amazing and the main reason i use spotify
 
It's no surprise to me that Spotify is climbing on the charts so quickly. I think it's only a matter of time before Spotify overtakes Pandora for the #1 spot.

It's app and UI are far superior, it's music selection is dramatically larger, its music discovery service is better, and you have the option to download individual tracks, albums, or artists music on demand or offline in high quality. It even has an add/supported free option to listen to specific artists' or albums (on random) on mobile devices for those who want to skip the subscription fee.
 
Everyone please try Beats music. It has a 2 week free trial, it is amazing!
 
Why would anyone do that when you can sign up through Spotify and pay $9.99 a month for a premium subscription? (Which I don't remember how I used to live without, for the record.)
 
deannnnn said:
Why would anyone do that when you can sign up through Spotify and pay $9.99 a month for a premium subscription? (Which I don't remember how I used to live without, for the record.)
Click to expand...
True, most app subscriptions are cheaper by going directly to the websites.
 
deannnnn said:
Why would anyone do that when you can sign up through Spotify and pay $9.99 a month for a premium subscription? (Which I don't remember how I used to live without, for the record.)
Click to expand...

iTunes cards are often on sale @ 30% off, especially going into holiday or graduation season. $12.99 Spotify then becomes $9 and pennies... works with other apps or subscriptions or Mac apps too. I bought Final Cut Pro X that way.
 
I wish pandora would offer a yearly subscription fee instead of the month to month they have now go to. They yearly doesn't even have to be a savings rate, I just want to pay once and be done, I have month to month auto draft transactions.
 
luckydcxx said:
Everyone please try Beats music. It has a 2 week free trial, it is amazing!
Click to expand...

I use Spotify right now. What's better about Beats?

I wonder, if Apple offered a streaming service, would they be allowed to stream all new albums? Or would they run into the same issue as Spotify with certain artists not allowing their albums to be streamed right away?
 
In-App Subscription Adds Additional Cost???

Wait what? If you do the 'in app' purchase of any of these services it costs 30% more per month? So Spotify premium goes from the standard $9.99 per month (if purchasing from a browser to use on your phone) to $12.99 per month when buying from your phone? For what, exactly? The convenience of starting the substitution plan from your phone instead of your web browser (which is a one-time thing).

You've got to be joking... essentially sounds like they're taking the 30% fee Apple charges to use its in-app model and passing the price onto their customers. Shame on them.

If this is true, why would ANYONE do that? Just go to your browser and setup the subscription there. You still get everything on your phone and it would be $3 less per month, forever.
 
Last edited:
keifer.street said:
its music discovery service is better
Click to expand...

I disagree with this one point. I think Pandora is far better than Spotify for discovering new music. The selection of music on Pandora is more limited than Spotify but I usually turn to other sources to discover music, then play it on Spotify.
 
Different prices for IAP and web

I wasn't aware they could have different prices for IAP and web subscriptions. At least for now spotify's site is still showing 9.99$ for premium service.
 
neuropsychguy said:
I disagree with this one point. I think Pandora is far better than Spotify for discovering new music. The selection of music on Pandora is more limited than Spotify but I usually turn to other sources to discover music, then play it on Spotify.
Click to expand...

You can start 'radio' in Spotify based on specific albums, artists, or tracks in Spotify (just like Pandora). You can also like/dislike tracks to improve the station. But Spotify also has the option of starting radio from a PLAYLIST and also has several 'top lists' by genre and Billboards charts. Overall I think it's has more ways to play radio and discover new music. All the music you 'like' in the radio is saved in a list for future listening.

Am I wrong? What does Pandora have that Spotify doesn't?

I've already demonstrated what Spotify has in this space that Pandora doesn't.
 
Can anyone let me know if iTunes credit can be used for these subscription services? For example, Beats at $9.99/mo or $99/year, if itunes store credit can be used or if it is credit card only?

I ask this because I know some services (such as iTunes Match and iCloud storage) cannot be paid for by credit. But since this is an app and not a service, I figured it was worth asking. Thanks.
 
misterc0w said:
I wasn't aware they could have different prices for IAP and web subscriptions. At least for now spotify's site is still showing 9.99$ for premium service.
Click to expand...

They pass on the share Apple wants from them (30%) to the customers.

bushido said:
had no idea Spotify offered it as a IAP Subscription. I got it through T-Mobile for the regular 9,99€ but getting it through T-Mobile gives me the change to use it without it being counted towards my data volume. its amazing and the main reason i use spotify
Click to expand...

Okay, before I say what I want to say: Please don't think I'm trying to judge you here.
I'll only say why I don't do that (and I could, I'm on T-Mobile Germany myself).
Net neutrality.
This is the soft way to introduce and get people used to a slow, but mostly critiqueless death of net neutrality and people's perception of its importance.

Glassed Silver:mac
 
deannnnn said:
Why would anyone do that when you can sign up through Spotify and pay $9.99 a month for a premium subscription? (Which I don't remember how I used to live without, for the record.)
Click to expand...

The only case it would be worth it is if you bought a bunch of iTunes gift card credit at a high enough discount (about 25% off or more).

I did some quick calculations:

25% off = $0.24 / month savings
33% off = $1.28 / month savings
20% off = not worth it as you're still paying more than $9.99

It's uncommon to see more than 20% off, but I recently bought some at 25%, and I have bought at 33% off in the past (usually $10 for a $15 and a limit of one per customer, though).
 
misterc0w said:
I wasn't aware they could have different prices for IAP and web subscriptions. At least for now spotify's site is still showing 9.99$ for premium service.
Click to expand...

I do remember one of the major conversation pieces years ago was that companies were not allowed to charge a different price in-app vs their website or other means. It had to be the same exact price or they weren't allowed to charge in-app. I guess times have changed.
 
It looks like paying with your fingerprint is a lot more impulsive than having to type in one's credit card information. :D #applepay
 
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