Spotify Calls Apple's App Store Restrictions 'An Abusive Power Grab'

[Michael Scrip]

But the thing people seem to be missing (and that Spotify is deliberately obscuring) is that Spotify doesn’t offer IAP subscriptions on iOS, instead they’re already doing what Netflix is doing. Basically, they want to advertise subscriptions in the app without paying anything to Apple, though I’m not actually convinced that it would lead to the conversion rates Spotify would need to be profitable (Spotify’s problems aren’t connected to Apple, they’re self-inflicted in my opinion, they’ve screwed themselves over with all these purchase bundles, I legitimately wonder what percentage of their customers pay full price for the service).

Exactly.

And they've leading people away from App Store payments since 2015.

Spotify urges iPhone customers to stop paying through Apple’s App Store

The Apple Music rival sends out an anti-iTunes PSA

www.theverge.com

Spotify is still the largest music streaming service in the world... and that's without having IAP.

 

[kc9hzn]

Spotify is still the largest music streaming service in the world... and that's without having IAP.

And yet they’re still hurting for money. So much for the market share argument!

 

[deevey]

But the thing people seem to be missing (and that Spotify is deliberately obscuring) is that Spotify doesn’t offer IAP subscriptions on iOS, instead they’re already doing what Netflix is doing. Basically, they want to advertise subscriptions in the app without paying anything to Apple, though I’m not actually convinced that it would lead to the conversion rates Spotify would need to be profitable (Spotify’s problems aren’t connected to Apple, they’re self-inflicted in my opinion, they’ve screwed themselves over with all these purchase bundles, I legitimately wonder what percentage of their customers pay full price for the service).

Exactly.

And they've leading people away from App Store payments since 2015.

Spotify urges iPhone customers to stop paying through Apple’s App Store

The Apple Music rival sends out an anti-iTunes PSA

www.theverge.com

Spotify is still the largest music streaming service in the world... and that's without having IAP.

IAPs were available until April this year.

I have been a (paid) subscriber to their Duo package for the last couple of years after getting an initial Couple of Years for free with my wife's iPhone purchase and Fiber Broadband. Not sure if the carrier or Spotify subsidized that.

But it seems that every place you look there's no end of promos or xyz months for free with Spotify, regardless if you are an existing customer or not - that seems to be a bit counterproductive, no ?

 

[kc9hzn]

IAPs were available until April this year.

I have been a (paid) subscriber to their Duo package for the last couple of years after getting an initial Couple of Years for free with my wife's iPhone purchase and Fiber Broadband. Not sure if the carrier or Spotify subsidized that.

But it seems that every place you look there's no end of promos or xyz months for free with Spotify, regardless if you are an existing customer or not - that seems to be a bit counterproductive, no ?

I didn’t realize they kept IAPs going for as long as they did, they’d been trying to get people off of it for years. I guess it goes to show that they were loath to cut off any revenue stream.

 

[deevey]

I didn’t realize they kept IAPs going for as long as they did, they’d been trying to get people off of it for years. I guess it goes to show that they were loath to cut off any revenue stream.

The power of impulse purchases

 

[Unregistered 4U]

I didn’t realize they kept IAPs going for as long as they did, they’d been trying to get people off of it for years. I guess it goes to show that they were loath to cut off any revenue stream.

A wise person once said:
“30% of something is still infinitely better than 100% of nothing.”

 

[deevey]

A wise person once said:
“30% of something is still infinitely better than 100% of nothing.”

You mean 70% of something I think

 

[kc9hzn]

The power of impulse purchases

Yep. Pandora seems to make a profit off of them, despite its much smaller size and market share. But even if Spotify had IAPs and paid no cut to Apple (and Apple Music didn’t exist), I suspect it would still have its profitability issues. It’s hemorrhaging money like no one’s business, but they desperately need something to tell their investors to keep the board from firing the whole C-suite.

 

[Unregistered 4U]

You mean 70% of something I think

I did, but, now that I think about it, the same applies! Still infinitely more! LOL