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I'm willing to bet Spotify would be happy hosting their app themselves and having users bypass Apples servers to save Apple the bandwidth, if that would mean they could sell their product without giving away a cut. The problem here is that Apple doesn't allow side loading applications in any way that makes the process usable for end users.

By usable, you mean that they secure their platform and guarantee what you get from their store is vetted. If someone sideloaded malware-ridden junk, people would blame Apple. Why should they set themselves up for that?
 
I mean it is kind of a ******** policy. Apple should allow apps to redirect outside the App Store for sign up if they are gonna charge a premium for signing up within the app.
No. The store has to not have any loopholes. If they did as you suggest, pretty soon, every app would be free-but-go-pay-us-on-our-own-website. Then Apple is in the position of running a huge store with no income from it. If a brick-and-mortar store let customers pay the manufacturers directly and walk out of the store with a widget that the store paid to have shipped there, paid to have on the shelf, paid to have a shelf for the widget to sit on, paid to have a store for you to go to (with lighting and employees and registers and whatnot)... and the store didn't make any money off the transaction, how long do you think that store would stay in business?

In other news, I'm shocked - shocked* - that Spotify would get behind a position that might let them gain a competitive advantage.

And it's not like you can't go buy the subscription outside the store, just that you can't put up banners saying, "hey, don't buy here, go across the street and pay us there".

Apple built the phone, the operating system, the store, the whole iOS ecosystem. Trying to claim that they're anti-competitive because they won't let others play in their sandbox is pretty egregious, when they built this all themselves and there are plenty of other sandboxes out there.

*: (Yes, also shocked to discover that there is gambling taking place in this establishment.)
 
What about Amazon not selling Apple TV or providing a Prime App? You can sell in your store what products you want. The government can't force you to sell a competitors product.

CRAZY!

Edit. Kind of like forcing Safeway Foods to sell Walmarts Store brands. Makes no sense.
 
Yeah, let's ditch the approval process so developers can submit fart apps, emulators, spyware, Chinese malware and whatnot, right Spotify? :rolleyes:
 
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I do wonder if anyone in this thread even bothered to read the original article. Spotify is not arguing against the revenue cut Apple takes for subscriptions. The issue is Apple will no longer approve the app if Spotify advertises a deal that tells users to go to Spotify's website to sign up. I think Apple will eventually get investigated by the US and EU on their rules blocking links to third party sign ups. Especially now that Apple is offering a competing service.

I know people here love Apple but it boggles my mind that so many think linking to a website should be illegal. Making it hard to compete with Apple not good for us users.
 
By usable, you mean that they secure their platform and guarantee what you get from their store is vetted. If someone sideloaded malware-ridden junk, people would blame Apple. Why should they set themselves up for that?
Side-loading already exists on Android and I don't see much of the "blaming" you mention: why should Apple be any different?
 
This is crap. Without the iPhone, spotify is a fraction the size they are now. Apple is not causing them grave harm.... Apple made them rich.
Apple would be a fraction of the size they are now if it weren't for the vibrant ecosystem of apps that other companies (including Spotify) made for iOS ...

According to Recode:
"This month, Spotify revived the campaign, but Gutierrez says Apple threatened to remove the app from its store unless Spotify stopped telling iPhone users about the promotion."

It's one thing that Apple doesn't allow links to external billing services, but what justification do they have to disallow promotions and ads in 3rd party apps? There is no such rule in the review guidelines AFAIR. That sounds extremely onerous if true, especially seeing how pushy Apple is with advertising Apple Music in the music app.
 
It's simple. If you want to use Apple's services, devices and OS to make money, pay them their fair dues. If you don't like what they're asking, go somewhere else to sell your services.
 
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I mean it is kind of a ******** policy. Apple should allow apps to redirect outside the App Store for sign up if they are gonna charge a premium for signing up within the app.

Why? Of all the services I subscribe to, only CBS and HBO are done through the App Store. Those services have found a way to not charge an "App Store tax" - Additionally, they don't have to allow subscriptions through the app. Lots of other apps survive just fine without this.

At first I would agree with you: I was like "Stop whining - Apple is taking care of payments/downloads etc. Just put a Safari link for people to sign up...Oh wait Apple forbids even doing that".

So? Does Whole Foods provide the sales flyer to Trader Joes in its stores?

Its a very interesting argument, and there are good points and bad points from both camps.

Wearing the Apple Hat:
It costs time and money to develop and provide the App store and App distribution network. Its entirely reasonable to expect that paid apps help pay for this via a portion of their purchase price.

To use the Brick and Mortor storefront analogy into play: Apple is the shopping mall. if you want to run a store in the shopping mall, and use real-estate, you have to pay for that. In return, the Shopping mall takes care of the hydro of the building, access to and from, parking, etc, etc.


Wearing Spotify hat:
After initial App download, Apple isn't involved in the Spotify application or delivery of streaming music. Why should they continue to require 30% of each and every months subscription fee? Apple is not involved in the delivery of content. Its not their network or bandwitdh and its no longer using the App store. Why should Spotify be required to continued to pay 30% of every single user's months subscriptions? Especially since with 30% taken off the top by Apple, There is absolutely no way of staying competitive in the streaming industry when Apple's own music streaming service isn't subjected to a 30% and can afford the 9.99 pricepoint

Are you sure that Apple isn't paying it's Beats/Apple Music division 30%? I would be willing to bet they are, for exactly this reason. Additionally, it will drop to 15% if Spotify users stay for a full year. And there are over 200 price point options that Spotify can set up. Is that not enough to offer a compelling option?

I'm willing to bet Spotify would be happy hosting their app themselves and having users bypass Apples servers to save Apple the bandwidth, if that would mean they could sell their product without giving away a cut. The problem here is that Apple doesn't allow side loading applications in any way that makes the process usable for end users.

I don't know a single iPhone user that would want this. The App Store, and all it's protections, are what draw many people to the iPhone.

Really? What if Samsung said to Comcast "We want 30% of your subscription money to show your TV shows on our TV sets". Would you have the same opinion?

Not even remotely the same, but thanks for playing!
 
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It would be like every every website having it own protocol or browser for you to use to access their site, every TV company designing their own video format, or every electronic company designing its own power plug.... obviously this argument can be taken to absurdum, which should be indication enough that it is ridiculous.

It's not like any of those things at all. It's more like Best Buy asking Wallmart for free floor space to sell it's Best Buy gift cards.
 
I wrote this in another thread yesterday, but I think it illustrates why what Apple is doing with Spotify is patently unfair and anti-competitive:

Imagine this:
  • A landlord owns a strip mall and leases one store to a store owner that wants to sell widgets, where the store owner has to give the landlord 30% of all sales. The widget factory charges $1.
  • Scenario 1: The store owner marks the widgets up to $2.50, where $0.75 (30%) goes to the landlord and $0.75 is net profit to the store owner.
    • This is fine.
  • Scenario 2: The landlord opens up his own store right next door to the store owner and sells the same widgets for $1.75. The landlord still makes $0.75 from each widget sold.
    • This is now not fine. It is mathematically impossible for the store owner to compete with the landlord. If the landlord charges less than $1.43 for the widgets, the store owner cannot possibly make money under the circumstances.
    • It doesn't matter to the landlord if the store owner goes out of business. If either the store owner or the landlord make a widget sale, it's all the same to the landlord.
    • By acting as both a store and landlord, he has an unfair advantage. Typically, tenants of malls write language into their leases that prohibit the landlord from doing this. They can do this because there are thousands of commercial areas in the U.S. There are only 2 "digital" commercial areas of any value, and they don't negotiate. Instead, they offer unreasonable contracts of adhesion.

You never said why the store owner is required to sell his widgets in this particular strip mall. I heard that there is an eclectic one down the street that has all the same utilities, and parking services and even the same "store" lease opportunities, where the landlord isn't selling a competing inventory (well... They are, just not as attractively/publicly). The only negative impact this other strip mall has is that most of the people who walk through treat the mall like a swap meet, and aren't willing to pay the prices as they are labeled.

As a Developer, I have always seen a higher payout from Apple Device owners than other platforms, so I see both sides of the "Apple Tax" argument... I am willing to keep paying Apple 30% on App Purchases (including IAP) even on my Apps which haven't seen an update in almost 3 years... Because people on Apple's platform still want to buy them.

The biggest difference is that Apple and Spotify, don't have a non-compete clause in the App Store saying that since Spotify has an App in Apple's App Store, that Apple can't have a competing Music App (which they don't it's baked into the OS).
 
I mean it is kind of a ******** policy. Apple should allow apps to redirect outside the App Store for sign up if they are gonna charge a premium for signing up within the app.

It does feel kind of Big-Brothery to me. I mean I get the whole competitive aspect thing, but not allowing apps to include any links to the web for subscriptions seems kind of excessive. At the same time, if that rule didn't exist then you might have a whole bunch of apps try to circumvent Apple fees.

I don't think there's a moral right or wrong here. I subscribe to a Apple Music family plan and recommend it to others. But this does put Spotify in a really tough spot and I sympathize with them. I assume profit margins in this market are low enough without 30% being taken off the top.

Its the same as you put your goods at Walmart. You need to pay Walmart to cover its operational costs too.

What if whenever you bought razors at Walmart, you could only buy replacement razor blades at Walmart? Or apply the analogy to some other product with refills?
 
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I mean it is kind of a ******** policy. Apple should allow apps to redirect outside the App Store for sign up if they are gonna charge a premium for signing up within the app.

Why?

"Hey, I have this really great restaurant. We paid a lot for the space, and the tables and other fixtures. What? You want to sell your food outside and let people bring it in to eat at our tables, and not pay us anything for using our tables? Hmmm, I'm not sure about that. But wait. You also want us to allow you to put advertisements for your food booth outside on our tables inside the restaurant? No. Don't think so. Thanks for playing, though."
 
Seems to me that because Spotify waited a year to make a large stink over this, is just them being scared that Apple Music is rapidly catching up in subscribers and continuing to grow each month. So they needed to attempt to create some negative press around AM. (Oddly convient this pops up after it's known that AM is 15mil and growing)
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Fanboys, obviously. They're abundant on Macrumors.

How strange that people pro Apple are on an Apple related news site. I never would have thunk it.
 
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I'm not sure about the logic of why Apple have refused an update if Spotify have (at this point) merely exercised their right to not offer any subscriptions through the iOS app?

I don't think Spotify deserves special treatment, if they want to sell subscriptions in their iOS app, they have to abide by Apple's app store rules. But if they choose not to do that at all rather than give Apple a cut, I don't think Apple should block an update (if it is otherwise complying with all Apple's rules). Spotify are cheeky for trying to put the promotion ad in there, Apple rightly rejected that, but I am not sure why Apple feel the need to block the update if the ad has been removed. I would hope it isn't out of pettiness to 'punish' Spotify, but unless both sides go into more details I suppose we just don't know.
 
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Apple runs parts of its business in a completely anticompetitive manner. Freezing competitors out is a case in point, so is an elaborate list of exotic approval rules. Those aspects need to be investigated and if supported by evidence, then prosecuted appropriately. Apple isn't above the law.

If Apple keeps going with this practice they will only discourage app developers to offer their services on the ios system. The whole ios system is attractive because of the abundance of apps. Fully agree with you
 
I believe that Apple is unreasonable. 30% is a very significant cut. I understand that Apple must finance the App Store too, but the flat 30% rate is neither fair nor justified to developers, particularly when they force developers to use this transaction mechanism, and it also punishes oblivious customers who are not aware of this and purchase in the App Store. The 15% reduction after a year is a pitiful compensation and only rubs developers’ noses in it further. It is a dickish policy and Apple should stop doing it.

30% is pretty standard in the software industry.

When big software companies that did not do direct sales of their software to consumers entered the market, they were interviewed about the 30% cut. All of them said the same thing, it is pretty standard for 30% cut when having 3rd party's sell their software.
 
Seems to me that because Spotify waited a year to make a large stink over this, is just them being scared that Apple Music is rapidly catching up in subscribers and continuing to grow each month. So they needed to attempt to create some negative press around AM. (Oddly convient this pops up after it's known that AM is 15mil and growing)

The fee is a huge cut of the subscription revenue, regardless of whether Apple Music is catching up or not. The fact that Apple Music is growing just makes it more painful for Spotify (fair or not).
 
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