Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Well... interesting comments. But this is the first I've heard of Apple Music being a disaster. From everything I've heard, it's very competitive to Spotify and other services.

Anyway... obviously Spotify is concerned that given time, Apple will be able to lure iPhone customers to Apple Music and they'll loose a large part of their subscriber base.

Disaster right now or not... Apple has the access to the content and is offering more services than most of the other services, this, plus add on top of that what they might do to merge in TV and Movie subscriptions into mix, and Apple will have a very compelling offering in the long run.
 
Its unfortunate. Apple music doesn't hold a candle to spotify. The music is so slow to play. Sucks, i was hoping to get rid of spotify and free up some space.
It's been about a week. Do you really think Apple Music would launch bug-free? There are plenty of current and former Spotify users that still complain about Spotify's UI, app bugs and playback issues to this day.
 
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/

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

If they use the app store, they pay the fee, because they're using APPLE'S SERVICE to make money. If they don't want Apple's service they can just sell the app and take care of account setup on their own web site. That's not so convenient for users... And that's the point. THEY USED APPLE'S SERVICE TO DEVELOP THEIR BUSINESS AND THEY NEED TO PAY FOR IT.
 
Well... interesting comments. But this is the first I've heard of Apple Music being a disaster. From everything I've heard, it's very competitive to Spotify and other services.

Anyway... obviously Spotify is concerned that given time, Apple will be able to lure iPhone customers to Apple Music and they'll loose a large part of their subscriber base.

Disaster right now or not... Apple has the access to the content and is offering more services than most of the other services, this, plus add on top of that what they might do to merge in TV and Movie subscriptions into mix, and Apple will have a very compelling offering in the long run.

I think it is a given that video will be merged in. I'd say they'll do that within a year.
 
  • Like
Reactions: Jstuts5797
This move runs contrary to typical business practices. Asking people to unsubscribe from your service is never a good idea. I wouldn't be surprised if only 50% that unsubscribe re-up with them on their own terms. Bad move all around.
 
I think someday Apple will get sued for this, if they get too big.

Nope.

Spotify agreed to Apple's terms when they submitted their app to the store. Even if Apple took a 90% share, it wouldn't matter. Spotify signed up for it. Just like those customers who signed up to pay more for Spotify.

If you made the next big App Store, and a small company started financially taking advantage of your customers whilst publicly blaming you for their financial immaturity...what would you do?
 
Not surprising how the wording in their e-mail makes it seem like APPLE is the one charging users an extra 30% directly.
Just like the Taylor Swift letter made it sound like Apple was not paying the poor artists when it was the record labels that these artists already made deals with. They got the same person who wrote Taylor's letter for her.
 
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.

Amazon at least is severely entrenched. Spotify doesn't have this luxury yet. I'm saying they'll be in serious trouble within 1 year.
 
If they use the app store, they pay the fee, because they're using APPLE'S SERVICE to make money. If they don't want Apple's service they can just sell the app and take care of account setup on their own web site. That's not so convenient for users... And that's the point. THEY USED APPLE'S SERVICE TO DEVELOP THEIR BUSINESS AND THEY NEED TO PAY FOR IT.
They "used Apple's service to develope their business"? Hardly. With the in-app purchases, Apple basically provides a payment service. I don't think anyone would disagree that they deserve a fee for that. It's just that 30% seems awfully high, compared to e.g. the transaction costs that banks take for credit card payments.

BTW, Apple benefits at least as much from the app developers as vice versa. Who would buy iPhones if it didn't have the rich app ecosystem?
 
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 :eek:

You do know that Spotify could have sent this email a long time ago hmmm. Spotify was using Apple to build their service for years; they knowingly let their users pay more just for that reason. You think they didn'T know? So, now they're suddenly enlightened? I call ******** on that. Apple won't take kindly to this and the little pissy child that is Spotify should be prepared to some bad time as its business declines.
 
i dont think a company can tell another company what to charge for their services on their own site. this isnt north korea
Of course they can't. They can just remove them from the App Store instead, if they refuse to comply with their terms though.
 
They "used Apple's service to develope their business"? Hardly. With the in-app purchases, Apple basically provides a payment service. I don't think anyone would disagree that they deserve a fee for that. It's just that 30% seems awfully high, compared to e.g. the transaction costs that banks take for credit card payments.

BTW, Apple benefits at least as much from the app developers as vice versa. Who would buy iPhones if it didn't have the rich app ecosystem?

Well, if Spotify tought it was high, they could have just stayed off IOS and withered. Because IOS users have the most money and they are the ones spending it on services. But, no, they're being coy about why they used the App store in the first place. In this case, Spotify had much more to gain from this than Apple.
 
Begun, the streaming music wars have.
I just made an account just to appreciate this Star Wars reference... May the Force be with you... image.jpg
 
Well, if Spotify tought it was high, they could have just stayed off IOS and withered.
As I mentioned before, Spotify did not offer in-app subscriptions until about a year ago. Before that you could only sign up for the premium service through their web-site. They hardly "withered" during that time. They simply did a cost-benefit analysis and came to the conclusion that this additional option would be beneficial for them.
Because IOS users have the most money and they are the ones spending it on services. But, no, they're being coy about why they used the App store in the first place. In this case, Spotify had much more to gain from this than Apple.
You seem very concerned for Apple. I'm more concerned that there remains a healthy competition in this field. Before Spotify came along, Apple had a near-monopoly in digital music distribution. Without Spotify, there wouldn't be $10 music subscription services and there wouldn't be Apple Music either.
 
  • Like
Reactions: Benjamin Frost
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.

I guess it wasn't really an option for them to eat the cost since so much of that $9.99 goes to the record companies.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.