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Spotify Encourages Customers to Cancel App Store Subscription, Resubscribe via Web to Save $3
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Apple didn't start charging 30% all of a sudden. Spotify knew this. So, either Spotify should have clarified when users were signing up through iTunes or they should have never done in-app purchase (just like Netflix).
I hate it too when people charge me for using their platform. They should design, maintain, and market the platform and let me use it for free. So unfair.
Its been reported that Spotify operates at a loss at the $9.99 rate... Why would they take an even bigger hit because of the 30% Apple tax?
Here is the new rule:
"To make things worse, Apple’s rules disallow companies from redirecting users to the browser to get the lower subscription price. "Apps that link to external mechanisms for purchases or subscriptions to be used in the app, such as a 'buy' button that goes to a web site to purchase a digital book, will be rejected," Apple wrote in its App Store review guidelines."
Source: http://www.theverge.com/2015/5/6/8558647/apple-ftc-spotify-app-store-antitrust
It's done to us every day by companies. You just didn't realize it.
Then they should have directed users to sign-up online to begin with rather than misleading users into paying extra.
If you are doing in-app purchase, then it goes via Apples infrastructure and payments system. Apple have a standard fee for that (30%), it may be high but until Apple changes rates for in-app purchases Spotify has to live with it.
Spotify's mistake was offering in-app purchases, they should have said that the App was a Player to let a user login to an existing Spotify Account, and let the user do subscription management all via the web in the first place.
This is really (imho) a case of Spotify doing the right thing too late, and not an Apple issue (yes apple looses revenue, but how much if Spotify only has around 20M paid subscribers)
I guess even if technically this might not be against the current wording, it seems that in spirit and/or in relation to some other rules perhaps contacting customers to cancel their subscriptions that were through the app to "steal" them to bypass the app is still likely off in some way somehow (it certainly comes off that way).
They are trying to buy market share. I love AM and wouldn't even consider going back to the Spotify mess...but some people like Spotify. The free markets can solve any issues. Spotify still isn't even turning up a profit. They are the Amazon of the music business constantly losing money while investors wait for a payout even though there is none.
Didn't Apple announce the reduction of those app store fees at WWDC?
Nevertheless, its a tactic by spotify to compete w/ Apple music...and they are losing IMO. People rather pay their subscription through the app store because they trust apple with their credit card info. I used my C/C w/ spotify on their site before and after a month or two, I took it off because I don't trust spotify with my credit card info and it just feels that their site is not secure enough (IMO only).
For those thinking about following spotify advice, don't. You pay the extra fee for the backend of Apple app store, that includes the security and reliability of Apple services.
Edit: Even better, give up on spotify. I love Apple music so much more than I ever did w/ spotify. Hell, listening to Beats1 alone is worth the 10 bucks you pay for apple music.
Nevertheless, its a tactic by spotify to compete w/ Apple music...and they are losing IMO. People rather pay their subscription through the app store because they trust apple with their credit card info. I used my C/C w/ spotify on their site before and after a month or two, I took it off because I don't trust spotify with my credit card info and it just feels that their site is not secure enough (IMO only).
For those thinking about following spotify advice, don't. You pay the extra fee for the backend of Apple app store, that includes the security and reliability of Apple services.
Edit: Even better, give up on spotify. I love Apple music so much more than I ever did w/ spotify. Hell, listening to Beats1 alone is worth the 10 bucks you pay for apple music.
Profit margins for streaming services are so small, spotify couldnt take the hit by charging apple users $9.99 with 30% of that going to apple. Their other option was to increase subs to $12.99 accross the board, which they didnt do, and I'm glad they didnt.
Exactly this, but 9.99 isn't even enough for them to break even.
Apple does not allow them to redirect users within the app. And Spotify always had a support article on their web site explaining this:
https://support.spotify.com/lv/prob...s-paying-for-Spotify-through-iTunes-cost-more
Then they should have been open about the fees in the first place.
Ok. Then follow Netflix's path. They don't have in-app purchases yet they are able to get customers. Or the initial email that users get when they sign-up for Spotify should mention fees and process for premium subscription. Apple can't stop Spotify from writing whatever they want in emails.
Rather than have a separate subscription/billing for Spotify, the in-apps allowed folks to have it all under one roof.
in doing so, Apple charges the 30% just as normal and Spotify is covering that by up-charging to compensate. Apple may be high at the 30% but it is what it is...they are bringing the large user-base and have CC from a ton of folks.
I think Spotify is getting about the same per subscription whether via in-app or outside, but now they want to let people know that it isn't more than AppleMusic...unless you do family plans.
and with gift card sales, I get 20-30% off those and thus a 'sale' on my purchases.
and I am still using iTunes Radio or maybe it is Beats1...either of those free services still works fine enough for me...i HATE the new streaming Music section within iTunes now
in doing so, Apple charges the 30% just as normal and Spotify is covering that by up-charging to compensate. Apple may be high at the 30% but it is what it is...they are bringing the large user-base and have CC from a ton of folks.
I think Spotify is getting about the same per subscription whether via in-app or outside, but now they want to let people know that it isn't more than AppleMusic...unless you do family plans.
and with gift card sales, I get 20-30% off those and thus a 'sale' on my purchases.
and I am still using iTunes Radio or maybe it is Beats1...either of those free services still works fine enough for me...i HATE the new streaming Music section within iTunes now
They will survive. Spotify just needs to work on their navigation issues and tighten their UI.
Apple Music, as it stands now, is broken, as my experience will note:
My own music is greyed out and not available for me to download MY OWN TUNES. Artwork doesn't bother to show up.
As noted above, some artwork doesn't bother to show up. The view for an artist for having multiple albums is nice though, but it doesn't always stick, as we'll see.
Yep, multiple albums by an artist sometimes shows up as a list, then the next album and song list.
Again, I don't have access to music I OWN. This is greyed out.
Another case of the wrong album art or none at all.
Wrong album art and some tracks greyed out preventing access to MY OWN music.
Apple Music, as it stands now, is broken, as my experience will note:
My own music is greyed out and not available for me to download MY OWN TUNES. Artwork doesn't bother to show up.
As noted above, some artwork doesn't bother to show up. The view for an artist for having multiple albums is nice though, but it doesn't always stick, as we'll see.
Yep, multiple albums by an artist sometimes shows up as a list, then the next album and song list.
Again, I don't have access to music I OWN. This is greyed out.
Another case of the wrong album art or none at all.
Wrong album art and some tracks greyed out preventing access to MY OWN music.
The mistake was them (spotify) offering to setup/subscribe via the App itself, they should have said it's a Player and account creation/management is all via the Web.
If you really think about it, it's Spotify that is at fault here, not Apple as Spotify wanted to use Apples in-app purchase system.
Amazon don't pay apple 30% for things purchased via their apps as you really do all the account creation/management via their back ends handle the payments for items ordered, not apple.
Oops... Apple get's caught with it's pants down ripping off customers.
Never has this slogan been more appropriate... Buyer Beware!
Silly Nefarious Apple
Never has this slogan been more appropriate... Buyer Beware!
Silly Nefarious Apple
I have had such an breeze with Apple Music, it's like, damn, what I needed without even knowing it.
They need to iron out those pesky bugs (on iPhone adding a song to a playlist needs to be 'added to my music' first for example) and that's it for me, it won...
Too bad that it's not being the case for everybody, I never had any streaming service before, with the update it was so automatic and easy that it was a:
1. update to iOS
2. agree to apple music
3. listen away and share with family and friends (it actually "just worked")
Hopefully all this gets fixed because there is something big here.