Spotify Encourages Customers to Cancel App Store Subscription, Resubscribe via Web to Save $3

[639051]

I have used the new streaming service from Apple, it doesn't hold a candle to Spotify.

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.

You do understand the reason it worked this way is because Apple forces the app on you and ties in with the App Store account/billing. They have an advantage in ease of use because of this. However, Spotify is by no means hard to install and pay for .. unless you're completely incapable of following a few simple directions.

 

[Rogifan]

So Spotify was perfectly fine charging people the 30% "tax" prior to Apple Music? Or have they sent these emails to people in the past?

 

[dannys1]

It isn't that much more expensive if you use gift cards. You can easily pick up gift cards at 20%/25% off and use them for Spotify, Netflix, HBO, etc.

This is nothing more than a desperation move to try to lessen the amount of cancellations as a result of the launch of Apple Music. I don't see many taking the bait as Apple Music is better and costs less.

Very debatable if its better at the moment - both are very flawed, feature lack, user unfriendly bug ridden systems - and Apple's is currently worse.

 

[smorrissey]

Problem with you now Spotify is that your catalog is inferior.

 

[C DM]

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

Except that Apple didn't do anything here.

 

[PJWilkin]

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.
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 above sounds like an issue on your phone, or with your account. Do you have iTunes Match ?

I do not see any of these issues on my phone (50% music on phone, 50% in the Cloud), and can see my music when searching.

Apple Music searches will show the Album artwork they have on the servers (not what you uploaded via iTunes Match), this however is minor but it does show the artwork (not the grey note symbol you seem to be getting)

 

[afawcett]

Well played Spotify. Well played.

 

[nepalisherpa]

So Spotify was perfectly fine charging people the 30% "tax" prior to Apple Music? Or have they sent these emails to people in the past?

I don't think they did. The way the email is worded, these users are just getting to know now. Spotify is afraid that these users might find Apple's music service cheaper.

 

[dannys1]

I am using Apple Music. Trust me, it works right.

Trust me, it doesn't - here is the tip of the Iceberg. Lots needs adding to this.

https://www.evernote.com/l/ABUCB7lG8xVE15NK0e1svfX5Wy3-7801J-8

 

[Rogifan]

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

How is Apple ripping off customers when they don't force developers to use in app purchases? Spotify is perfectly free to tell people to sign up for their service on their website. If you allow Apple to process the payment you pay the fee, simple as that.

 

[Kabeyun]

I've already switched back to Spotify after the Apple Music disaster.

To what disaster are you referring?

 

[dannys1]

What disaster ? state the issues you've had ?
Or are you just trolling ?

Here I clearly state all the issues i've had - https://www.evernote.com/l/ABUCB7lG8xVE15NK0e1svfX5Wy3-7801J-8

 

[Rogifan]

I don't think they did. The way the email is worded, these users are just getting to know now. Spotify is afraid that these users might find Apple's music service cheaper.

Right so they're not really looking out for consumers, they're just trying to prevent an exodus to Apple Music.

 

[DJsteveSD]

How many of these $13 users can there really be?

I'm sure there are tons. I know someone that still pays for AOL and high speed internet!

 

[Rigby]

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.

Why would it be a mistake? I'm sure Spotify studied the pros and cons before they introduced in-app subscriptions. Apparently it was quite successful for both them and Apple:

https://www.macrumors.com/2014/09/24/pandora-spotify-apple-revenue/

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.

I don't think anybody is "at fault" here. Personally, I don't see the problem in Spotify pointing out that their pricing is competitive with Apple Music's. Nothing wrong with that email.

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.

Spotify did the same thing. The in-app option was only recently introduced (about a year ago, if I remember correctly).

 

[b1wils1]

This is not going to end well for users AND spotify.

 

[Swift]

I'm pretty sure this is not a major source of Apple's income. Probably replaced, 10 times over, in three months.

 

[Studioman]

How many of these $13 users can there really be?

The key is that Spotify gets a lot of its people from being on the App Store which apple heavily markets too their benefit. If they were originally Spotify users they would not be signed up via the App Store in the first place. I personally wouldn't go with them because it's just another random company with my credit card info.

 

[Daws001]

In case you didn't know, the normal Premium price is only $9.99, but Apple charges 30 percent on all payments made through iTunes.

Tricky wording from Spotify. I managed to get my hands on the unedited version:

"In case you didn't know, you've been paying a higher rate than you needed to. This is because Apple charges 30% on all payments through iTunes. We could have kept it $9.99, but we'd rather our customers pay for the tax. This didn't concern us until Apple Music launched and now we don't want you jumping ship over the higher price. We could have notified you about this sooner but were waiting to see Apple Music's pricing and gauge consumer interest."

 

[Swift]

This is perfectly okay, their option. They were obviously the source of the state attorneys-general investigations, though. That kind of stinks, but par for the course.

 

[andy9l]

i dont think a company can tell another company what to charge for their services on their own site. this isnt north korea

They can. PayPal do. You get caught passing PayPal fees onto your customers, you're in trouble. Apple have the right to do the same. It's their service Spotify are selling through.

This business model is $9.99 per month. Since Apple decided to be greedy, Spotify has to up charge to compensate for the loss they would take. Apple doesn't get to take a 30% loss for Apple Music since hey own it. It's not a fair play ground.

Then their business model is flawed. That is not the problem of their customers, but Spotify have made it so.

They want to leverage on Apple's success of iOS and the App Store? Then they should pay the price. Not their customers.

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?

Then they should not deliver the service via the App Store. If that means they can't deliver the service at all to iOS devices then, again, the product/service is flawed.

It's no different than creating an app in Flash and blaming Apple for not supporting it. It doesn't work that way. Apple is boss in this case, since you're leveraging on their success for revenue. You build for their product, they don't build their products for you.

 

[Andrei90]

Just Google "Apple Music Problems" and you'll see it's not working right for a lot of people.

What stupid thing to say. Obviously if you google for something you're gonna find it duuuuh. Google "Spotify doesn't work" and you'll see it's nor working right for a lot of people too.

 

[DustinLH00]

they dont redirect through the app though. thats why they sent out the emails

I never said they redirected through the app. I was responding to people that were questioning whether Spotify could do this. See who I quoted.

How do Spotify have the email addresses of these subscribers? I'm not suggesting anything odd, I just didn't think Apple turned over user information, even for subscriptions.

I get emails from developers after purchasing apps on Mac and iOS, so I assumed my email was being shared with them already. But, I believe you have to create a Spotify account or login via Facebook, etc. and Spotify gets your email that way.

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).

I agree, it is shady and extremely obvious given the timing in relation to the Apple Music launch. At this point it just makes Spotify look childish and worried IMO. Plus, as others have said it doesn't look like they did a good job of notifying users of the lower price option and customers may get angry about this.

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

Apple charges developers a percentage of their revenue. How is this Apple ripping off customers?

 

[Andrei90]

They can. PayPal do. You get caught passing PayPal fees onto your customers, you're in trouble. Apple have the right to do the same. It's their service Spotify are selling through.



Then their business model is flawed. That is not the problem of their customers, but Spotify have made it so.

They want to leverage on Apple's success of iOS and the App Store? Then they should pay the price. Not their customers.



Then they should not deliver the service via the App Store. If that means they can't deliver the service at all to iOS devices then, again, the product/service is flawed.

It's no different than creating an app in Flash and blaming Apple for not supporting it. It doesn't work that way. Apple is boss in this case, since you're leveraging on their success for revenue. You build for their product, they don't build their products for you.

I think someday Apple will get sued for this, if they get too big.

 

[Keirasplace]

People were actually paying $12.99 for a service that costs $9.99? Also, it's pretty sad that Spotify was actually charging the higher amount to compensate for Apple tax.

Apple provided them with exposure on their platform and easy setup for their users. That's why people pay the "tax". Spotify needs to thread lightly here, they need IOS users to make a living. They're barely ecking an existence as it is. Their begging to get their ass kicked by Apple (more than they already have this week). All audio streamers will be up the creek without a Paddle by the end of the year except Amazon, Google and Apple.