Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
There is a value for being a storefront and handling your payments. 30% is not even close. Would you ok with the bank taking 20%, 25% for holding your money?
It’s 15% after the first year, right?
What do you mean by “not even close”. Close to what?
Compare banks and chose the one that offers you the best deal. But the bank comparison isn’t good.
 
There's no exclusivity in a third party App that works in various systems and gadgets, and that's where Spotify wants to be.
Well due to cultural and political differences I don’t think we’ll ever see eye to eye or sway each other’s opinions. It’s up to the courts to decide, and I hope macrumours links this thread to the decision.
 
Imagine you have a service that offers streaming content. You charge users $10/month. You pay your content suppliers an average of $5/month per user. You profit $5/month per user.

Now Apple comes along and decides to enter the same market. They create a streaming service, for the same $10/month. But Apple, being a much larger corporation, can afford to make less on this particular endeavor. So they make a generous deal of $7/month per user to the content suppliers. Content suppliers love it, they're making more money, and Apple gets a lot of exclusivity.

What's now happened is content suppliers are enjoying their $7/month, and want everyone else to start paying it as well. Content providers start telling you that they want $7/month, or they're pulling off your service.

Your service looks at its budget and says "well, if I had to start paying $7/month, I'd still make $3/month per user. It's a cut, but it's not that bad, I think we can try to make those ends meet."

But then the same company that is now your competitor tacks on a fee of 30%. There goes your $3 profit. You now have zero profit, and you go out of business. Or, you raise your price to $13/month to compensate for the difference, but your users just see "Apple is cheaper, let's go there" and leave.

Apple on the other hand happily continues their service, making $3/month per subscription.

This to me is the core issue here. What Apple is doing - entering a market then using their market power to try to "encourage" others to exit that market - is exactly the sort of practice that Microsoft got in trouble for. Microsoft used their market power (they WEREN'T a monopoly - Mac and Unix/Linux existed at the time!) to try to push their browser. Although I still think this situation is a bit worse - Microsoft never forced you to use their browser, they only required it to be preinstalled. The entire idea was "people might be discouraged from using the competition because the UX of using the built in option was better." That's precisely what's happening here - the UX of using Apple Music, along with its potentially lower cost (should Spotify raise prices to compensate for the Apple tax), is quite obviously going to "discourage" people from using the competition.

Take a look at the "TimeLine". The rules that Spotify is complaining about were in place in 2011. If these rules were new or recently updated, I would agree. Further, Apple made the deal for Spotify by lowering the 2nd year and beyond to 15%.
 
  • Like
Reactions: Bytor65
But honestly it doesn't sound like you understand whats going on here. The $99 is something you pay even if you don't ever submit an App to Apple. I know, I paid it for years so I could work on other companies apps as a contractor.

I've paid it as well.

The 30% IS for apple to host your app on their store, because you don't have a choice if they want their customers who also happen to be Apple's customers to have access to your app.

That's just wrong. If you have a free app, no in-app options, no subscriptions, etc., Apple gets 30% of $0. If you don't want to pay 30% to Apple, you actually do have a choice in that and can still host your app on their store. The $99 is the one where you don't have a choice if you want your app in the store. You could have an app with millions of downloads and only pay Apple $99/year. The 30% only comes into play when Apple starts being the middle-man in financial transactions. That could be selling your app, handling in-app purchases, subscriptions. If the 30% was to cover the costs of hosting the app on their store, why would Apple allow free apps? That would be a pretty big loophole.

To be fair to you, I totally get that's kind of splitting hairs in the bigger picture since it's all just money going into Apple's pockets. If you're not Netflix or some banking app and are actually trying to make money on the App Store, they're getting their $99 AND 30%. As a developer myself, I certainly have my complaints with the App Store. I've seen fun and useful apps disappear because it was costing them more than they were making. Normally I wouldn't even bother pointing out the differences between the $99 and 30%. But in this thread, I think the distinction actually matters. If people are to understand the story, they need to know how it all works.
 
There is a value for being a storefront and handling your payments. 30% is not even close. Would you ok with the bank taking 20%, 25% for holding your money?
Ummm . . . they have. They lend my money to borrowers, using a credit card, at 20+%. My savings rate return is 1%. The bank keeps the 19% difference.
 
Last edited:
Spotify sees the writing on the wall. Apple is disrupting Spotify’s defacto monopoly on speakers by offering Apple Music built in.

Until recently, when someone purchased a connected speaker, Spotify was the only real choice even for iPhone users because Apple Music wasn’t offered. Apple Music is now spreading to these speakers so that people have a real choice and Spotify is scared.

Exactly. Who is really the monopoly here? Being a music industry veteran here in L A I actually think Apple has been incredibly shy about pushing Apple Music - in fact too shy. And yet Spotify seems like a monopoly that’s angry that Apples platform is gaining steam through new means. And....let’s face it Spotify is on wayyyyy more platforms via voice assistants etc than A M. And this charge comes after Apple said no to joining Spotify in reducing fees to artists.

Sour grapes indeed.
 
Nobody is saying the App Store constitutes a monopoly, but the way Apple is doing business in different ways to different developers. While Uber is able to have in-app transactions free of Apple Tax, Spotify can't because it's a direct competitor to Apple Music, in which Apple doesn't follow their own rules to force their music streaming app into people's throats. That's monopoly.

There are lots of successful paid/subscription apps that compete against free Apple native apps (notes, reminders, calendar, podcast, word processing). Why is Spotify the only direct competitor that Apple is supposedly picking on?
 
Being a music industry veteran here in L A I actually think Apple has been incredibly shy about pushing Apple Music - in fact too shy.

What are you talking about, all iPhones ship with Music app frontmost and in the homescreen, and first thing it does when you open it is nagging you about a trial subscription. It’s pretty much like IE.
 
It is about Apple taxing a lot of it for App Store transactions. They won't tax themselves for Apple Music subscriptions since it's their own System, but that's what creates an unfair advantage. This is how law works.
Why don’t you see it this way?
Apple created the store from scratch and is now maintaining the store. True/false?
Spotify doesn’t need to create and maintain the store. True/false?
That creates an unfair advantage for Spotify. See you logical flow above to answe this.
 
  • Like
Reactions: G5isAlive
Why don’t you see it this way?
Apple created the store from scratch and is now maintaining the store. True/false?
Spotify doesn’t need to create and maintain the store. True/false?
That creates an unfair advantage for Spotify. See you logical flow above to answe this.

The app store is overrrated, I go to spotify.com and get the app on Macs, we don’t need a store. Stop acting like the store has that much value to Spotify or Netflix, it doesn’t.
 
Spotify is probably one of the whiniest companies on this planet

And it is likely that this whining allows to choose. Don't forget that competition is beneficial for you: better quality and services and lower prices.
If there was no whining, Apple (and maybe even Spotify) would be a monopoly, which I don't think you will like.
 
  • Like
Reactions: arkitect
iOS app developer here. The underlying problem is that Apple Music doesn't have to pay the 30% fee on subscriptions since it's part of Apple, so it's an unfair playing field. This is clear anti-competitive behavior on Apple's part, as much as they try to distract from that. Apple's reply doesn't really address this issue.

As every app designer and developer knows, offering the lowest-friction way to subscribe (IAP) is best. Apple's point that "only a tiny fraction of their subscriptions fall under Apple’s revenue-sharing model" is irrelevant because Spotify concluded paying the 30% wasn't worth it. Apple Music, on the other hand, gets the best user-experience for free. It's totally unfair.

I have seen this argument several times. What’s so bad about this? You see it all the time where competitors of a product have a lower price.
 
  • Like
Reactions: MEJHarrison
I’ve always enjoyed that the App Store made it easy to purchase.
Seems to be one of the most secure places to have your ID, $ online.
Content is remembered if u drown your device.
When Netflix decided to not be on the App Store, glad they left existing customers alone.
Or I would be gone.
No system is the best, seems that anything online nowadays is subject to fraud, scrutiny.
I think the model should stick, if you want your stuff on on the App Store, here is the criteria you must follow to protect users, artists and Apple yada. If you don’t want to follow the criteria, that is your choice to not do that and you aren’t on the App Store.
Crazy that companies can go to court over the terms of agreement that they accepted.
There’s only one reason they do that, it’s for $$, nothing else.

When those terms are abusive or unfair, it is good exercise to actually challenge them however it is possible.

I am actually happy for this door to be opened by Spotify. It is time for the EU to look at this monopoly that Apple has on the Apple iOS ecosystem. In the US, the rules are much more relaxed because the consumer is not on the top of the interests of the government, but in the EU, the consumer is the main interest of the government, and that means that business must comply with the best interest of the consumer in terms of competitiveness and quality of service.

We'll see what happens. But Spotify is not complaining in the EU randomly... there is a reason for that, and it is precisely the part of the consumer :)
 
Because Apple doesn't have a direct competitor to Netflix. Wait until they do and you'll see for yourself.

Are you predicting when Apple has a streaming service Netflix is going to be a cry baby like Spotify? Because right now Netflix is fine with people signing up for their service out of app. Or is that the point you aren’t acknowledging?
[doublepost=1552855503][/doublepost]
When those terms are abusive or unfair, it is good exercise to actually challenge them however it is possible.

I am actually happy for this door to be opened by Spotify. It is time for the EU to look at this monopoly that Apple has on the Apple iOS ecosystem. In the US, the rules are much more relaxed because the consumer is not on the top of the interests of the government, but in the EU, the consumer is the main interest of the government, and that means that business must comply with the best interest of the consumer in terms of competitiveness and quality of service.

We'll see what happens. But Spotify is not complaining in the EU randomly... there is a reason for that, and it is precisely the part of the consumer :)

The consumer has a choice. It can buy an android. Now for those of us who like and want to support IOS keep your greed out of it.
 
And it is likely that this whining allows to choose. Don't forget that competition is beneficial for you: better quality and services and lower prices.
If there was no whining, Apple (and maybe even Spotify) would be a monopoly, which I don't think you will like.

He prefers Spotify gone so he can pay $50/month for his AM subscription.
 
  • Like
Reactions: trifid
Why don’t you see it this way?
Apple created the store from scratch and is now maintaining the store. True/false?
Spotify doesn’t need to create and maintain the store. True/false?
That creates an unfair advantage for Spotify. See you logical flow above to answe this.
How isn't it unfair when apps like Uber are excluded from some of the Apple's rules?
[doublepost=1552857107][/doublepost]
There are lots of successful paid/subscription apps that compete against free Apple native apps (notes, reminders, calendar, podcast, word processing). Why is Spotify the only direct competitor that Apple is supposedly picking on?
Apple Music - Spotify.
[doublepost=1552857211][/doublepost]
Are you predicting when Apple has a streaming service Netflix is going to be a cry baby like Spotify? Because right now Netflix is fine with people signing up for their service out of app. Or is that the point you aren’t acknowledging?
[doublepost=1552855503][/doublepost]

The consumer has a choice. It can buy an android. Now for those of us who like and want to support IOS keep your greed out of it.
Netflix has no other choice besides paying the Apple tax. I'm predicting that if Apple has a service to compete with Netflix, the story is going to be different. Since you're bringing the Netflix argument over which is a completely different scenario from Spotify being the n1 music streaming service competing with Apple Music.
 
Possible new business plan for apple:

1. Pick a city and use their cash hoard to buy all the commercial property.
2. Lease them out with rules like you must use apple trucks and drivers for deliveries. You must use apple pay for accepting payments from customers.
3. Charge the tenants a 30% tax

Apple are the ones that build and maintain those buildings so they can do this. Not a monopoly cause people can pick a different city.
 
  • Like
Reactions: arkitect
Probably mentioned in the 32 pages in here... but it seems to me like Apple wants to make it difficult for Spotify to get more subscribers by doing this.

I’ll gladly continue using Spotify for this very reason.

F Apple and their bs lately.
 
  • Like
Reactions: trifid
Spotify users on iOS are, in fact, Apple customers first. I realize Spotify doesn’t like the situation they’re in, and I’m sure Apple could probably share more of the spoils, but Spotify has a fundamentally exploitative business model. They’re crying foul and paying Artists nothing without a shred of irony? Really?
 
So go find another platform. Why does Spotify whine so much? Do all music streaming services complain as much as Spotify?
[doublepost=1552859614][/doublepost]Seriously..Apple created the app world.. Go build your own sandbox!
 
They’re crying foul and paying Artists nothing without a shred of irony? Really?

Apple is stealing 30% from artists on iOS and 0% on macOS, why? Lets start there if you wanna mention what artists are or aren’t getting.
 
Last edited:
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.