Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Are you the product or the customer? Are you an Apple product or Apple customer?


Car analogy:
Spotify wants to sell a music subscription to a group of people (iPhone owners).
Home Depot wants to sell lumber to a group of people (Ford truck owners).

Should Ford get 30% of the sales Home Depot makes?
 
But they do. Dominos, Uber and other brands don't have to pay for purchases made through their app.
Yeah, even Amazon can sell physical books with its app. Just no Kindle books. It's a distinction that boils down to "what makes Apple the most money? (and they can get away with)"
[doublepost=1467407472][/doublepost]
I'm not complaining about that. I'm complaining about the only way to get apps is through the app store. Devs either comply with apple or ignore iOS. On every other os devs can ignore its respective store and go direct to consumer with the app on their website.

Imagine if Microsoft tried to get a cut of every sale of every windows application and there was only one avenue for purchasing that could not be circumvented. Nobody holds power and influence over their ecosystem like apple, unprecedented..

The analogy that occurred to me is that it would be like Toyota requiring you to buy a gizmo from them that must be installed by the dealer to put gas in your car, then getting a royalty every time you stopped at Shell to fill up.
[doublepost=1467408236][/doublepost]
But it looks more like Spotify want's Apple to foot the bill for operating costs while it walks away with all the money.

Oh, give me a break. That would only be true if Apple were actually providing the content distibution. They don't. App distribution (for any given app) uses only a tiny sliver of the server load and bandwidth that running a streaming media operation does. There's not even a comparison.
 
Is it illegal to complain about unfair terms and conditions? Specifically the rule that Spotify is complaining about is: no ad in spotify app directing users to the web to sign up.

Why are people talking about like Spotify wants everything for free? Spotify already pays the yearly developer fees to Apple that cover app distribution and customer billing. Spotify doesn't want to use Apple's customer billing and people are acting like Spotify is stealing from Apple.

No, not illegal to complain at all. And I'm not saying anything at all about Spotify wanting something for free.

But why would you design an app, submit it, and willingly agree to Apple's legal terms and conditions if you do not agree to those terms and conditions. Seems that would make your agreement to those terms, willingly accepted, a lie.

Would you sign a contract if you did not agree to it's terms?
 
Is it illegal to complain about unfair terms and conditions? Specifically the rule that Spotify is complaining about is: no ad in spotify app directing users to the web to sign up.

It's not illegal but Apple's terms have been the same since the launch of the AppStore. App developers are not allowed to sway users towards other payment methods for non hardware products which can be delivered from within the apps as a method of either monthly subscriptions or one off in app purchase. Every app developer has to abide by the rules, why'd Spotify be any different?

Why are people talking about like Spotify wants everything for free? Spotify already pays the yearly developer fees to Apple that cover app distribution and customer billing. Spotify doesn't want to use Apple's customer billing and people are acting like Spotify is stealing from Apple.

You pay for developer rights and app distribution rights on the platform, not to sell products. These are 2 different things and I don't understand why it's so difficult to understand?! Anybody creating a successful platform for people to jump on to make money, will charge their fair share. Every platform level service providers do the same. Literally EVERY service provider.
 
Last edited:
You pay for developer rights and app distributaries rights, not to sell products. These are 2 different things and I don't understand why it's so difficult to understand?! Anybody creating a successful platform for people to jump on to make money, will charge their fair share. Every platform level service providers do the same. Literally EVERY service provider.

Because other os makers allow devs to distribute and sell apps outside of their store if devs do not agree to their store's terms. iOS is too large, especially with respect to profits, for devs to ignore. Apple is positioned in a way noone else is. Please don't compare them to game console makers.
 
Because other os makers allow devs to distribute and sell apps outside of their store if devs do not agree to their store's terms.
It's not just down to apps. Any platform level service charges businesses for using their platform.

Eg : JustEat charges restaurants, eBay & Amazon charges sellers, Google charges for Play Store etc.

Any company that has spent billions to build and market a platform will charge and that's completely fair.
 
It's not just down to apps. Any platform level service charges businesses for using their platform.

Eg : JustEat charges restaurants, eBay & Amazon charges sellers, Google charges for Play Store etc.

Any company that has spent billions to build and market a platform will charge and that's completely fair.

Yes but Google does not force use of the store. Those other analogies don't really apply IMO because they don't make computer os's
 
Yes but Google does not force use of the store. Those other analogies don't really apply IMO because they don't make computer os's
It's not down to making computer OS. It's the matter of a business that runs on making money off a platform. What Google does is their business. As an individual and successful business why should Apple worry about that?! Every business have their own terms and conditions, besides the business model of Google and Apple are completely different so pointing out what Google does is really pointless.
 
It's not down to making computer OS. It's the matter of a business that runs on making money off a platform. What Google does is their business. As an individual and successful business why should Apple worry about that?! Every business have their own terms and conditions, besides the business model of Google and Apple are completely different so pointing out what Google does is really pointless.

It's not just Google though, it is every other os that is not a game console. Even osx, none force use of the vendors store

And apple is sitting on what , over 90% of mobile profits?

Sounds like too much power to me
 
Last edited:
It's not just Google though, it is every other os that is not a game console. Even osx, none force use of the vendors store
There's actually a very good reason for that. The Desktop computers paradigm is very different and the usage pattern is different as well. Also the fact that Apple commands a really tiny share of the desktop user base so they can't really expect big developers to develop for a platform which ain't even in the same league. Having said that Apple is the only platform that still has a curated AppStore.
 
  • Like
Reactions: AdonisSMU
Has anyone checked the top grossing chart on iTunes lately? Look at this, Spotify is ranking #2 top grossing in revenues, HBO Now #5, Netflix #7 and Pandora #8.

Apple is profiting millions from their 30% milking scheme on subscription apps.

Now consider the following.

Amount of money Apple has made from Spotify, HBO Now, Netflix, Pandora and other subscription services on:

Mac: $0

iOS: millions/billions

How in the world can anyone justify Apple stealing millions off monthly fees from Spotify, Netflix etc on iOS, while on Mac it's $0? Apple's model is absolutely outdated and abusive for subscription services, period.
yNe3TQs.png
 
  • Like
Reactions: castlerock
How in the world can anyone justify Apple stealing millions off monthly fees from Spotify, Netflix etc on iOS, while on Mac it's $0? Apple's model is absolutely outdated and abusive for subscription services, period.


Because they are apple zealots. Besides Cook to them they can do now wrong.

Some are into the whole iOS has it all one spot place mindset. Its all there, life is easy, I am happy they say. Codependency....nasty little neurological tick that has people do some really stupid things and its okay to them. iOS store to be honest why I am not buying iPP as the wave of the future besides stated limitations of the iOS. Beholden to this one source for everything that is draconian in policy....no way I'd see myself being that stupid to make this call. Since as mentioned...the handy dandy streaming apps are free on real computer OS. Want to pay for it through them...its allowed.

These zealots seem to not be realizing its lack of competition costs them. Need to move some product but the only source for it....the don't have to give discounts or deals. Vice say valve/steam. Its the summer sale now....will be the thanksgiving sale, the x-mas sale, etc. Moving product at cheap prices.

Bought stuff outside the store....steam has a nice little section where you plug in the serial number...its now in your steam record. I reload games all the time not bought on steam but in the steam system. The other reason beside the kick ass sales I use them. Some games older than my son (6 yours old), install media long gone for them but not needed after the serial plugged in.

Punchline...they support 3 OS plus theirs. So the well apple makes an OS argument is shaky...valve does too now as well.

We won't see this with apple. iOS you have no choice and this benefits apple greatly. MacOS app store lures in its suckers daily as well.
 
  • Like
Reactions: trifid
Are you the product or the customer? Are you an Apple product or Apple customer?


Car analogy:
Spotify wants to sell a music subscription to a group of people (iPhone owners).
Home Depot wants to sell lumber to a group of people (Ford truck owners).

Should Ford get 30% of the sales Home Depot makes?
Does ford store the trucks they sell at Home Depot?

You mean to tell me you couldn't think of that question yourself? Good grief!
 
Has anyone checked the top grossing chart on iTunes lately? Look at this, Spotify is ranking #2 top grossing in revenues, HBO Now #5, Netflix #7 and Pandora #8.

Apple is profiting millions from their 30% milking scheme on subscription apps.

Now consider the following.

Amount of money Apple has made from Spotify, HBO Now, Netflix, Pandora and other subscription services on:

Mac: $0

iOS: millions/billions

How in the world can anyone justify Apple stealing millions off monthly fees from Spotify, Netflix etc on iOS, while on Mac it's $0? Apple's model is absolutely outdated and abusive for subscription services, period.
yNe3TQs.png
If you don't like the rules, don't play the game.
 
  • Like
Reactions: SystemHasFailed
Because they are apple zealots. Besides Cook to them they can do now wrong.

Some are into the whole iOS has it all one spot place mindset. Its all there, life is easy, I am happy they say. Codependency....nasty little neurological tick that has people do some really stupid things and its okay to them. iOS store to be honest why I am not buying iPP as the wave of the future besides stated limitations of the iOS. Beholden to this one source for everything that is draconian in policy....no way I'd see myself being that stupid to make this call. Since as mentioned...the handy dandy streaming apps are free on real computer OS. Want to pay for it through them...its allowed.

These zealots seem to not be realizing its lack of competition costs them. Need to move some product but the only source for it....the don't have to give discounts or deals. Vice say valve/steam. Its the summer sale now....will be the thanksgiving sale, the x-mas sale, etc. Moving product at cheap prices.

Bought stuff outside the store....steam has a nice little section where you plug in the serial number...its now in your steam record. I reload games all the time not bought on steam but in the steam system. The other reason beside the kick ass sales I use them. Some games older than my son (6 yours old), install media long gone for them but not needed after the serial plugged in.

Punchline...they support 3 OS plus theirs. So the well apple makes an OS argument is shaky...valve does too now as well.

We won't see this with apple. iOS you have no choice and this benefits apple greatly. MacOS app store lures in its suckers daily as well.
Oh please! Everyone who agrees with Apple in this case must be a Zealot because Spotify got more than 160million downloads and benefitted greatly from is prior and continued association with Apple.

But you're calling people zealots when everyone knows Android users don't pay for subscriptions at the same rate as iOS customers. Apple should absolutely benefit from this as should Spotify. Spotify app is being downloaded a ton. Of course they should pay for it...or should Apple charge Spotify a fee overtime someone downloads the app.

Spotify's mistake was pricing the service so low that they can't even turn a profit off of 30 million paying subscribers and 100 million ad supported subscribers. Thats not Apple's fault that Spotify's business plan was designed to fail from jump...and artists are complaining Spotify doesn't generate enough money for them. Spotify created a business where no one wins and everyone loses or is destined top lose.
 
Last edited:
  • Like
Reactions: akash.nu
Oh please! Everyone who agrees with Apple in this case must be a Zealot because Spotify got more than 160million downloads and benefitted greatly from is prior and continued association with Apple.

Hey you're calling people zealots when everyone knows Android users don't pay for subscriptions at the same rate as iOS customers. Apple should absolutely benefit from this as should Spotify. Spotify app is being downloaded a ton. Of course they should pay for it...or should Apple charge Spotify a fee overtime someone downloads the app.

Spotify's mistake was pricing the service so low that they can't even turn a profit off of 30 million paying subscribers and 100 million ad supported subscribers. Thats not Apple's fault that Spotify's business plan was designed to fail from jump...and artists are complaining Spotify doesn't generate enough money for them. Spotify created a business where no one wins and everyone loses or is destined top lose.

The mistaken idea is that undercutting is a bad thing. Apple Music undercut what Spotify can afford because streaming music isn't a business by itself.
 
The mistaken idea is that undercutting is a bad thing. Apple Music undercut what Spotify can afford because streaming music isn't a business by itself.
That's an interesting point. I never thought about it that way....and not just Apple but also Google, Amazon etc... Spotify is still trying to get free people to play for something they won't.

I think it could've been a business model....but since they priced the service so low consumers now price it at that low rate and there's no way to go lower. Spotify should've charged at least $30/mo to start or they should raise the price so everyone else can raise the price. They are the big streaming player.

Apple raised the price on iTunes tracks. I don't see why Spotify can't do the same thing but they don't market themselves as premium tier service only Tidal does and Tidal gives you noticeably better sound quality as a result. Rather than a free tier Spotify needs a premium tier of service.
 
Last edited:
That's an interesting point. I never thought about it that way. I think it could've been a business model....but since they priced the service so low consumers now price it at that low rate and there no way to go lower. Spotify should've charged at least $30/mo to start or they should raise the price so everyone else can raise the price. They are the big streaming player.

They're a big streaming player, yes, and they'd likely even be profitable right now if they didn't have free users. But they have users who don't pay, that's where they lose money.
 
They're a big streaming player, yes, and they'd likely even be profitable right now if they didn't have free users. But they have users who don't pay, that's where they lose money.
Everyone keeps telling them this but they insist that its their job to make music free. They may get their wish but then no one not even the artists and labels will be happy.

#itsthebusinessmodelstupit
 
Everyone keeps telling them this but they insist that its their job to make music free. They may get their wish but then no one not even the artists and labels will be happy.

#itsthebusinessmodelstupit

And that's why I don't think they'll be around within a couple years. Whether they get 70%, 85%, or 100%. Their business model sucks.
 
And that's why I don't think they'll be around within a couple years. Whether they get 70%, 85%, or 100%. Their business model sucks.
And Spotify is stuck paying those royalties....for people who will never pay. What is the conversion rate of free tier users to paid users of Spotify in the last year? Spotify needs to pull it together. Apple/Google/Amazon all have other services that can offset and they still don't give it away for free. I don't know about Pandora. I don't know how Pandora and Spotify have stuck around as long as they have tbqh....
 
And Spotify is stuck paying those royalties....for people who will never pay. What is the conversion rate of free tier users to paid users of Spotify in the last year? Spotify needs to pull it together. Apple/Google/Amazon all have other services that can offset and they still don't give it away for free. I don't know about Pandora. I don't know how Pandora and Spotify have stuck around as long as they have tbqh....

Pandora has lower royalties due to being more of a traditional style radio than Spotify and Spotify keeps getting VC Money.
 
Friend: Hey I found this cool app called Spotify, it's so awesome having all this music for $13 per month
Me: Wait, why are you paying $13? It should be 10 bucks
Friend: It's $13 on the app store
Me: Apple is overcharging you because... no idea, I have no idea why Apple needs to steal 30% every month from you
Friend: wow, such evil greed, what a rip off.

Spotify isn't just the victim here, every user is affected and Apple's brand image is being hit too.
 
  • Like
Reactions: jon3543
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.