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The amount Spotify has to pay in royalties has no connection whatsoever to whether or not Apple gets a cut. And as Apple has pointed out in their response, the vast majority of Spotify users on iOS use the 'Free' version of the app that's advertising supported anyway. Apple makes zero dollars from that version.

Yes, it would be interesting to see the ratio of users usring the free version and 30% and 15%.

In the end it won't be 30% on the entire revenue including ads of iphone users.
 
I am super okay with breaking up the big tech monopolies. While at first that might sound like a slap against the freedom to do business it actually is for the protection of the business environment and consumer choice. I would force Facebook to be just Facebook, no Facebook "competitors" under the same ownership. I would make Google split from YouTube. Apple, Amazon and others would not be able to get into the streaming market. Amazon could remain an online store that sells media but not an online store and a content provider. Same for Apple. It could be a computer company making all kinds of devices but not also a streaming company.
 
I am super okay with breaking up the big tech monopolies. While at first that might sound like a slap against the freedom to do business it actually is for the protection of the business environment and consumer choice. I would force Facebook to be just Facebook, no Facebook "competitors" under the same ownership. I would make Google split from YouTube. Apple, Amazon and others would not be able to get into the streaming market. Amazon could remain an online store that sells media but not an online store and a content provider. Same for Apple. It could be a computer company making all kinds of devices but not also a streaming company.
There's still a good amount of competition at least between the big corps, so I see no reason. In fact, people here complain regularly about how "everyone is doing everything," e.g. you can buy a TV streaming service from like 10 different big companies.
 
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As soon as you subscribe to Spotify they send you emails to lower your subscription to $9.99 by going to their web page.

They even use their own streaming audio service to tell you subscribe through their web page.

I can’t see how their complaint that Apple is preventing them from communicating with their own customers is legit.

How does Spotify send you an email if you suscribe thru the iOS app store? Does apple give Spotify your email address? That doesn't seem very private!
 
That is not the point. If Apple pushes enough of them away that will change, and more and more of them will. Its like Apple's Pro Mac users... a significant chunk of them are gone. It didn't happen over night, but it did happen. Apple is going to piss off more companies as it tries to become a services company. And Apple's services have quite frankly always been confusing and sucked. How many times did they re-brand what is now iCloud? And don't get me started on PhotoStream/Photo Sharing/iCloud Photo Library.
Except the iOS store is the most profitable App Store in the industry and the Mac store never was. Good luck explaining to shareholders that you decided to loss all profits instead of just a portion.
 
How does Spotify send you an email if you suscribe thru the iOS app store? Does apple give Spotify your email address? That doesn't seem very private!
AFAIK there's no "log in with Apple ID" for Spotify. You need to make a Spotify account. Though it would be nice to log into stuff with just my Apple ID.
 
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Everything that Apple said is true.
But 30%? Are you kidding me, even 15%?
I would think services like this would expect 1-5%. Apple is greedy, pure and simple.
Apple’s App Store is the reason for their success. Before the App Store to get an App on a phone meant paying 70% plus promotional cost. Not to mention paying huge fees for the right in the first place. 30% is more than fair. 15% is a crazy deal. Just the credit card processing of online purchases can total as much as 18% on a $1 purchase after you factor in the per swipe fee. That’s why some stores have a minimum amount to use a card. In this case Apple’s cost is between 4-4.5% now factor maintaining the platform, handling customer service, fraud, declines on renewals and refunds. Now factor in that they are responsible for marketing the platform, maintaining the security and trust of the customers which is why many of us Apple users will do something through Apple before we will give yet another company our card info. That alone is worth the 30%. Many like me won’t use Spotify if they have to trust them with their credit card. Spotify knows this because they have half the traction on Google Play Store even though they sell far more phones.
 
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Everything that Apple said is true.
But 30%? Are you kidding me, even 15%?
I would think services like this would expect 1-5%. Apple is greedy, pure and simple.
If Apple is so bad, then people can just sell on Android. Clearly they consider the 30% worthwhile.
 
I here you... you may be correct. I’m not a developer so you have more knowledge than me.

My question is this. If you compare Apple Music to Spotify side by side on a cost incurred basis... doesn’t Apple incur more costs to provide their streaming service than Spotify because the are providing their own infrastructure for distribution.? What would be a fair practice? This seems like it should be simple math problem. What is a fair “cut” of Spotify’s subscriptions to offset Apple distribution,development, ongoing support costs etc.

I'm sure both companies do a good job of minimizing infrastructure costs. It's not really relevant. Spotify isn't using Apple's servers for streaming.

As to what is fair: clearly that would be breaking off Apple's software and service offerings into a separate company. Apple should not be a competitor on their own platform.
 
Spotify can't just add the app to the phone from their own site. They have to use Apple though a person might be listening to Spotify on several different devices. Under Apple's premise, Dropbox should be paying them 30 percent too for their app, but they don't.
 
If Spotify was smart, they would read the Jobs Bio by Walter Isaacson ... ALL the tactics AAPL is currently using are detailed in that book ... Cook is just using the same things that Jobs did !

It's surprising how many simply don't know that !

Regardless, the MAIN problem with the iOS App Store is "App Discovery" !

AAPL has too much control wrt "App Discovery" !

There could be (up-to) 100 UN-Discovered Billion Dollar Apps in the iOS App Store ... EACH buried by tens of thousands of Crap Apps !

IMO, AAPL needs to start charging App Devs a one-time-fee of $300 for each app, to remain in the app store.

That will FORCE App Devs to PRO-actively remove most of the Crap Apps ! <-- KEY POINT !

Tim Cook & Phil Schiller have NEVER once proposed anything similar.

Know why ???

Neither has any relevant experience !!!

Cook is simply a Bean Counter, & Schiller is a token VP of Marketing, yet he ALSO does most, if NOT all, of the Product Planning.

Neither has any software development experience !!!

While Samsung is now offering 8 GB of DRAM across their product line, AAPL still sells "new" iPhones in the 2-3 GB DRAM range !

The AAPL Board will wise up @ some point ... they came close to it in Jan.

Strictly for his Bean Counter skills, I give Cook an A+ ... as a CEO, I give him an F--.

Schiller gets an F-- as VP of Marketing ... way too many missed opportunities for a company with AAPL's resources & standing !
 
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Apple makes the hardware and software. They can do whatever they want with their platform. Nobody is forcing Spotify to be available on iOS, and can make their own mobile device and operating system if they want to do what their heart desires. Microsoft was fined over IE because they forced the default app on hardware that didn't belong to them. Apple's vertical ecosystem gives them freedom to do whatever they want.

In that case Apple must take full legal and financial responsibility for every app on its store.

They can't use the get out that there just providing a platform if they're then (ab)using that platform for their own gain.
 
I think people are missing the point. Apple is well within its rights to 15% or 30% or w/e it is from the app store. However, preventing apps from telling users that you can go on the site to purchase it cheaper or including a web browser in the app that allows them to do the purchase external from the app store is likely the issue.
They used to do that, but then what was happening was apple got $99 per year total and the app developers got to make millions off of apple’s work creating and curating the App Store and providing the platform.
 
Everything that Apple said is true.
But 30%? Are you kidding me, even 15%?
I would think services like this would expect 1-5%. Apple is greedy, pure and simple.
Greedy? Apple gets a 30% cut because app creators can make a lot more by being on the App Store than going at it alone. Apple handles all of the backend and payment processing. It's simple. If you don't like Apple's cut don't sell on the App store.

Why should Apple provide Spotify all those services for free when Spotify is making money off of their app? Apple isn't keeping a competitor off of their market place, they're just making them play by the same rules as everyone else that sells on iTunes.
 
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Average user ....... Downloads and installs Spotify App, looks at price to subscribe, is clueless about any Apple markup, looks at Apple Music price to subscribe.

Now what do you think is going to happen? That's the real issue here.
 
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Apple in turn makes tens of billions of dollars off of the work of app developers in using their work to sell iOS devices. Let's not pretend like Apple gets nothing out of this arrangement.
Of course it’s true. The system benefits everyone, especially consumers. But the system is not sustainable if companies like Spotify can leverage it for free.
 
If Apple is so bad, then people can just sell on Android. Clearly they consider the 30% worthwhile.

Forgetting that Apple gimps competitors in the app store and the ranch and can get away with it because of its market power. Beats me how the the biggest company in the world that takes 90% of industry profits is positioned as the underdog.
 
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Apple is not a monopoly.

How about Spotify builds their own devices, build their own software to run on those devices, build their own store, build their own payment system, instead of betchingg about Apple’s 30% cut on their platform and store. theiR not freee!!!

They wouldn’t be anywhere without Apple’s users!!!!!!!!!!!!¡¡!!!¡
 
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