Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
I love this. Hit Apple where it hurts, Spotify! *cheering*
Yeah if Spotify buys yanked from the iOS store entirely then at least they will be losing less money because they will have way less money.

Still not sure how Spotify seems to be the only streaming service to be extremely unprofitable.
 
I use Apple Music and I'm very happy with it. Apple Music is not error free, but I believe much of your problems come from user error.
Example: Your complaint about no album artwork on for some of your music. If the album was named correctly then the artwork would show. You have "4:21...The Day After" listed as "4.21...The Day After" and "Tical 2000: Judgement Day" listed as "Tical 2000 - Judgement Day"
Both are user error
As for the greyed out music. Go into Settings and turn on iCloud Music Library.

On a side note I intermittently had the 'greyed out' problem too when using iTunes on Windows. (And I'd already turned on iCloud Music Library) I'd have to fix it by going to Account Info... and signing in again, at which point it would be accessible once more.

I then saw that my music would grey out again anytime I used Get Info on a song and edited its metadata. Annoying but a bug I assume they'll fix over time.
 
  • Like
Reactions: Jstuts5797
I was supposed to be getting a 2 or $3 a month discount with Sprint, only to find out it was only for the "Framily plan" and not my 3-4 year old everything data plan. (for me...a 14 year old customer!) it would remain the $9.99 a month.

Thanks Spotify or Sprint or whoever.

I will gladly use Apple Music from here on out.

-Rant
 
  • Like
Reactions: Jstuts5797
This is an excellent move by Spotify.

The whole issue of Apple's 30% fee is now in the public spotlight. Apple need to reduce In-App Purchases to a much lower fee—perhaps 5 or 10%. I'm sure many companies have been put off selling services through the App Store because of this extortionate cost.
If by excellent move you mean hasten their demise more quickly, I agree.
 
I never realised you could buy it from the App Store for 12.99.

i guess some people trust thier purchases through apple, and would pay extra.....

I'd be upset if u was a long term spotify premium customer and only now they make me aware of this.
 
If by excellent move you mean hasten their demise more quickly, I agree.
Yup, they are trying to eliminate themselves from the streaming markert :rolleyes:

You realise apple looses out in this move......
 
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.
What is funny is a 30% margin for a retailer is not even a little bit out of line.
 
  • Like
Reactions: prasand
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?

Why would they sell it at a loss to begin with?

It's not an apple tax, it is the cost of doing business and paying a retailer for selling their goods. If they can't make money without the retailer getting a share they certainly should not agree to make it worse.

Much like the smartphone industry in 2006 apple saw the streaming music business as a huge cluster. Spotify is RIM only worse.
 
Apple invented the app store. Not just their App Store, but the app store. They provided the developer tools, provided the banking/financial tools, provided support and tutorials, built out the infrastructure, promoted, and provided the very bed of an OS for the apps to run on. For millions of developers the 30% fee is perfectly fine, because they don't have to build out their own e-commerce site, or promote their own applications, or develop their own programming code.
< snip>

"Handango was founded in 1999 by Randy Eisenman. Handango was a pioneer of mobile software distribution and is widely credited with many "firsts" in the distribution of mobile apps including a self-service developer management and reporting portal, the business model of a 70/30 developer revenue split, over-the-air distribution of software with palm}, the industry's first digital rights management deployed with Nokia, and the Handango Commerce Engine that facilitated ecommerce on behalf of the software developer directly from their Web site." from Wikipedia

unbelievable
 
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.
There is no evidence profit margins at 9.99 a month are small anywhere but Spotify.

Spotify's ad tier and many discounted subscriptions are why they lose so much money. That and inept management.
 
Apple greedy? Straw man much?

Apple invented the app store. Not just their App Store, but the app store.
Uhm, no. See for example: https://en.wikipedia.org/wiki/Handango
Spotify is a startup who used Apple to get themselves going, and now they're one of the big players in the field.
You may have missed that Spotify is present on other (and bigger) platforms as well. It's no coincidence that Apple will, for the first time ever, sell music on a competing mobile platform. I wonder if Apple will pay 30% of the Apple Music fee to the Google app store. :p
 
Spotify is doomed and is not a well run company. Between Apple music and the expansion of google music they are on borrowed time.

Here they compound one bad decision with another. Not even sure this doesn't violate apples terms and conditions.

I am shocked people keep dumping funding into this company. At one point it was for the ipo payoff but I don't even know if they will survive long enough for test.
You may be surprised. With their current user base, they'd only need to generate $3 ARPU per year from their ad-supported subscribers to become profitable. It will get easier and easier as the user base grows. And it remains to be seen how many people will actually pay money for Apple Music after their trial period is over. I suspect many will switch back to the ad-supported Spotify tier.
 
  • Like
Reactions: Benjamin Frost
You may be surprised. With their current user base, they'd only need to generate $3 ARPU per year from their ad-supported subscribers to become profitable. It will get easier and easier as the user base grows. And it remains to be seen how many people will actually pay money for Apple Music after their trial period is over. I suspect many will switch back to the ad-supported Spotify tier.

Apple don't mind those Free users go to Spotify... those users are not profitable...
 
  • Like
Reactions: Jstuts5797
Uhm, no. See for example: https://en.wikipedia.org/wiki/Handango
You may have missed that Spotify is present on other (and bigger) platforms as well. It's no coincidence that Apple will, for the first time ever, sell music on a competing mobile platform. I wonder if Apple will pay 30% of the Apple Music fee to the Google app store. :p

Probably Apple use Spotify style... 12.99 on Google and 9.99 on iOS.. and blame Google for price increase and encourage people to buy iPhone to get 9.99 price. Lol :p
 
Apple don't mind those Free users go to Spotify... those users are not profitable...
They do generate a small profit for Spotify. But more importantly, I think Apple will care because these users are no longer firmly tied into the iTunes ecosystem. Keeping them there is probably one of the main reasons why Apple Music exists.
 
Good move by Spotify. Streaming is a competitive market and being in the position that Apple is in, they are definitely capable of leveraging this unfair advantage. I don't take any issue with Spotify responding like this, makes complete sense.

I think Apple is learning that most of the markets they are in are very competitive. Other than the iPad and iPhone, I don't see much of what Apple puts out as separating itself from its competition.

The overpriced proprietary, non-upgradeable, forced obsolescence, MAC lineups are in a very competitive market with many systems 30% cheaper. (I know they run Windows but if they are banking the MAC on OS X, they better get it together because Windows 10 looks VERY GOOD)

The App Store, while fun for customer and a cash cow for Apple, could go away quick if they lose iPhone and iPad market share.

In my opinion, Apple has let the success of the "i-device" go to their head and they are money grabbing everywhere. They were strong but the longer they pull this crap the weaker they will end up. The pendulum will shift.

Anyone that knows me knows I would NEVER have considered windows or anything but a Mac. Seriously, after the Mac Mini fiasco, I am very seriously considering a Gigabyte BRIX with Windows 10. 90% of the rest of the world uses Windows, maybe I should go back.
 
  • Like
Reactions: Avalontor
Yeah if Spotify buys yanked from the iOS store entirely then at least they will be losing less money because they will have way less money.

Still not sure how Spotify seems to be the only streaming service to be extremely unprofitable.

Based on your comment, it sounds like you are in the know and I've been rather curious. How profitable is Apple Music? I don't believe Apple Music has made any money yet, so I'm just curious...
 
Not really a surprising turn of events. It's really stupid that Spotify charged its users extra via the App Store to compensate in the first place, but meh.

Yeah, so stupid.

Maybe you can start sending 30% of what you make to Apple? It should make you feel really smart....

As to Apple Music, it's still half-baked. I have been comparing it to Google Music and Google Music is overall a much better service, with better machine-learning and as I dig deeper, a better library.

I like Google Music better than Spotify, but if I had to chose, I'd probably chose Spotify over Apple Music.

BTW, subscribing to services like Netflix or Spotify from iTunes is just stupid, since it takes funds from the companies which provide a service that you presumably like (if you subscribe to it). Less money to them means less content and services they can offer, so both you and they lose.
 
Last edited:
There is no evidence profit margins at 9.99 a month are small anywhere but Spotify.

Spotify's ad tier and many discounted subscriptions are why they lose so much money. That and inept management.
Actually according to http://www.theguardian.com/technology/2015/apr/03/how-much-musicians-make-spotify-itunes-youtube most streaming companies get about 25% of the money. If spotify were to lower their subscription by 30% then they'd be at -5% for every paying user.
 
Here's something else that could backfire on Spotify. If other subscription services aren't doing the same people will wonder why Spotify is passing on the 30% to consumers when others aren't.
Spotify keeps 30% of their profits. If they earn $9.99 from a subscription per month, they earn roughly $2.99 per month with approx. $7 going to the music labels. Lets say Spotify picks pricing Tier 10 (customer is charged $9.99 per month via the App Store). They will earn $7.00 per sale ($2.99 goes to Apple).

Do you think it's in Spotify's interests to earn $0.00 per sale?

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.
Apple doesn't allow developers to put a link to a website to buy stuff. There was the whole Microsoft Word subscription issue a while back. Apple is basically forcing developers to choose between in-app purchases or nothing. You can tell the customer about alternative (and cheaper) ways to buy using an external source but certainly not within the app.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.