Spotify Accuses Apple of Using App Store Approval Process as a 'Weapon to Harm Competitors'

[Rogifan]

YUP! Walmart should let me sell my product without any charge for space on their floor.

So are you saying there should be no free apps in the App Store?

 

[calvinbhai]

One other thing to mention, is the fact that Apple process monthly subscription payment for Spotify.

Here's where the 30% usually goes:
1) Credit card charges
2) Someone has to write and maintain software to process these subscriptions that abide by the export/import laws, taxes etc
3) Promotions: This is the big cost most people don't recognize when pointing at apple. All those iTunes gift cards in the stores and online, if they sell for $100 I bet Apple is losing 10% to 15% of that amount to discounts and retailer margin. I have even got $100 gift cards for $80 (have heard of $75 also). This is after the seller's margin. So, if $100 gc was sold for $80, Apple already has lost at least 20%.
4) Refund support and processing

I dont know what percentage of App Store spending is from CC vs GC, but CC users can certainly be more profitable for Apple. imo, Spotify's whining is moot. Especially after the fact that Music has been such a failure.

 

[shk718]

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.

when i go to wallmart to buy something should i be allowed to bypass their markup?

 

[routine_analyst]

Apple isn't above the law.

If Spotify doesn't agree to the terms, then Spotify won't be on the Apple built store. How is this any different then any store in the world choosing not to offer a product or a range of products by a manufacturer?

 

[dewski]

People still use Spotify?

oh brother

 

[username:]

Would buy an android phone for the first time if Spotify was pulled from App Store

 

[waitandwait]

When purchasing physical products, your arguments are sound. However, in this particular case, we're discussing an ongoing subscription.

So for an analogy, it would be like me buying a magazine or newspaper at a retailer, subscribing to it, and that retailer getting a 30% cut of that subscription price (and every subsequent renewal) even though all future issues are delivered to me independent of that retailer (via direct mail or the local delivery person).

The retailer certainly deserves a cut of that initial purchase, but I do not believe they deserve a cut of the future business that is carried out independent of them and at no cost (at least directly - I admit that there is an indirect cost in that I no longer purchase that item from them).

No, not true. Apple needs to employ staff to screen apps updates (for bugs, security, etc), a server for updates and data centres of information of apps stored with the iCloud, maintaining the app store and prevent hackers etc etc.The idea of future business in the an store is very different from purchasing physical products but that does not diminish the costs involved.

For instance, IF there are no new paid applications in the app store (for Apple to draw its 30% cut), does it mean that Apple is not required to maintain the app store any more?

 

[BvizioN]

When your shop controls the entire platform for your customers, yes,

My Shop, my rules. You don't like it, feel free take your stuff and leave.
By the way, I am spotify customer before you say anything, because i believe their service is still better then Apple Music.

 

[Kkspire]

I've never used the app to buy subscriptions. I always went to the website.

is using the app to purchase a subscription really necessary?

Yes. It's like setting up your shop in my shop. Then telling me I don't get paid for you being in my store. Nope. Goodbye.

 

[w00master]

One other thing to mention, is the fact that Apple process monthly subscription payment for Spotify.

Here's where the 30% usually goes:
1) Credit card charges
2) Someone has to write and maintain software to process these subscriptions that abide by the export/import laws, taxes etc
3) Promotions: This is the big cost most people don't recognize when pointing at apple. All those iTunes gift cards in the stores and online, if they sell for $100 I bet Apple is losing 10% to 15% of that amount to discounts and retailer margin. I have even got $100 gift cards for $80 (have heard of $75 also). This is after the seller's margin. So, if $100 gc was sold for $80, Apple already has lost at least 20%.
4) Refund support and processing

I dont know what percentage of App Store spending is from CC vs GC, but CC users can certainly be more profitable for Apple. imo, Spotify's whining is moot. Especially after the fact that Music has been such a failure.

Let me ask... do retailers get a cut of revenues based on individuals who subscribe to magazines they buy at their store?

What about a bookstore?

How about a store in the mall?

Also... do stores (like Wal-Mart/Target/etc.) not allow magazines to have subscription offer cards in their magazines at the store?

 

[iSRS]

Psssst. You can't compare a physical marketplace where space is finite vs an online marketplace.

Disk space in a "virtual" world is not infinite, for the record.

 

[ericgtr12]

My Shop, my rules. You don't like it, feel free take your stuff and leave.

Not just your shop, it's also your land that you're ruling with such an iron fist. Nobody can live there without it, it's called a monopoly.

 

[samcraig]

This is a two-way street. Without the richness of 3rd party apps, the iPhone wouldn't sell nearly as much as it does today. Apple benefits hugely from the apps, even if the app store itself didn't earn a single penny.

Indeed. Remember when the iPhone launched and how "useful" it really wasn't (other than via the web). It was only after the App Store was created that sales really exploded.

 

[Mackinjosh]

Just scumbag Apple being scumbags again.

 

[randian]

Is $7/month net less than Spotify's costs to provide the service? If yes, they should pull the app immediately rather than continue this farce. If not, every App Store subscriber is incremental profit for them even at $10/month gross. Most companies are happy making profit wherever they can, and it's not as if their customers don't know you can buy direct. I don't see the problem, this complaint rings hollow.

 

[samcraig]

Disk space in a "virtual" world is not infinite, for the record.

Are you really going to argue the financial implications of a meg or two here vs shelf space in a retail store? They are lightyears apart. It's not a valid argument. Yours - or the original poster.

 

[EricTheHalfBee]

Bunch of whiners think they're entitled to use Apple and The App Store the way they see fit.

And a bunch of COWARDS for accusing Apple but not actually telling us why their App had to be changed. Why are you AFRAID to tell the whole truth, Spotify?

 

[w00master]

Not just your shop, it's also your land that you're ruling with such an iron fist. Nobody can live there without it, it's called a monopoly.

Do these same stores take a cut of the magazines you buy in their store that you subscribe to?

 

[iSRS]

Oh, by the way. The point about "unfair to customer - costing customers more" argument that Spotify is claiming? Yeah...

Spotify Simplifies Its Family Plan, Drops Price to $14.99 for 6 Users

Yeah, Apple is causing prices to INCREASE.

 

[waitandwait]

Just scumbag Apple being scumbags again.

You are free to choose Android phones

 

[Rogifan]

Using another company's platform to peddle your product/service will nearly always result in fees. That is not anti-competitive. That's business.

If it's not working for Spotify, their business model is flawed. This concept is not new, nor something Apple invented.

As far as I'm aware, no-one is stopping Spotify developing their own OS and devices.

One would hope that a young, agile company like Spotify could focus on improving their product and gaining market share the proper way, rather than complaining about a larger, slower corporate having more money.

Most of the apps I have on my iOS devices were free. So should Apple not allow free apps in the App Store?

 

[zubikov]

Wah! Wah! It's not fair cause I'm not making money and someone else is!

If you don't like it...then, well make your own phones, OS, app store, cloud storage infrastructure, marketing platform and customer base.

 

[w00master]

Are you really going to argue the financial implications of a meg or two here vs shelf space in a retail store? They are lightyears apart. It's not a valid argument. Yours - or the original poster.

Do these retail stores get a revenue cut of the magazines bought in said store that you subscribe to?

Do they also not allow those subscription cards and offers in those magazines too?

 

[kylelerner]

That's like me asking a boutique to sell my handmade shirts to customers at the price I want, with no portion of the money going to the boutique.

That's not right or fair to the boutique, and the boutique doesn't have to sell my shirts.

At that point, I should open my own boutique.

 

[Mackinjosh]

Wah! Wah! It's not fair cause I'm not making money and someone else is!

If you don't like it...then, well make your own phones, OS, app store, cloud storage infrastructure, marketing platform and customer base.

Or better yet, just stop putting apps on Apple products. Then along with the removal of the headphones port, tons of users will have no problem going Android with their next phone.