Spotify Subscribers No Longer Allowed to Pay Through App Store

[MacRumors]

Spotify will no longer allow customers who previously subscribed to the Spotify streaming music service through the App Store to continue to pay using Apple's platform, reports Variety. Spotify has started sending emails to subscribers who pay using an App Store subscription to let them know that they'll need to make changes.

Spotify has not allowed customers to sign up for a Spotify Premium subscription through the App Store for the last seven years. App Store Spotify subscriptions were in fact only available for a two-year period between 2014 and 2016, but some longtime subscribers have continued to pay for Spotify through the App Store since that time.

In emails to customers, Spotify says that it is no longer accepting Apple's billing service as a payment method.

"We're contacting you because when you joined Spotify Premium you used Apple's billing service to subscribe. Unfortunately, we no longer accept that billing method as a form of payment."

At the end of the final billing period, Spotify customers who have a subscription through the App Store will have their accounts transitioned to the free ad-supported service. Customers will then need to resubscribe to Premium using the Spotify website.

There is no mechanism for subscribing to Spotify through the Spotify app, as Spotify has restricted signups to its website in order to avoid paying Apple's fees. "You can't upgrade to Premium in the app," reads Spotify's "Premium" section in its iOS app. "We know, it's not ideal." For customers who have been continuing to pay through the App Store, Apple has been taking a 15 percent cut, which Spotify no longer wants to pay.

Given that Spotify has not allowed signups through the App Store for multiple years, this change is not likely to impact many Spotify customers.

Article Link: Spotify Subscribers No Longer Allowed to Pay Through App Store

 

[tripsync]

you mean you could just get people to sign up via web instead of doing IAP? who knew.

developers who cry about Apple's 30% cut are being stupidly unreasonable.

 

[coolfactor]

I'm not sure how taking choice away from customers is the right message. Isn't that the issue that they are battling... lack of choice?

 

[LeeW]

Not going to impact them. Spotify has a very, very strong following.

 

[LeeW]

So, Spotify wants to stay relevant to the Apple's App store but do not want to pay 15%.

Remember that Spotify has not accepted payments through the App Store for many years. This only affects those who paid through the store years ago and kept paying that way.

 

[coolfactor]

I do feel that it's time for Apple to reduce the rates. Yes, they need to cover credit card fees that they pay, but do they need an extra 10-25% on top of that? No. 5% would be reasonable given their transaction volume. That's how the market works, but in the case of digital goods, there are no supply constraints. The supply is virtually unlimited.

 

[Rogifan]

you mean you could just get people to sign up via web instead of doing IAP? who knew.

developers who cry about Apple's 30% cut are being stupidly unreasonable.

But you couldn’t tell them in the app that they could sign up via the web and pay a lower rate. You certainly couldn’t link to your website in the app so they could do so.

 

[DaveTheRave]

you mean you could just get people to sign up via web instead of doing IAP? who knew.

developers who cry about Apple's 30% cut are being stupidly unreasonable.

I think the catch is they can’t directly say (within the app) “go to our website for a better rate”. Instead they need to be coy about it “it’s not ideal”.

 

[lkrupp]

I do feel that it's time for Apple to reduce the rates. Yes, they need to cover credit card fees that they pay, but do they need an extra 10-25% on top of that? No. 5% would be reasonable given their transaction volume. That's how the market works, but in the case of digital goods, there are no supply constraints. The supply is virtually unlimited.

Really? You think digital goods don't have supply constraints? It’s just a couple of servers in a back room that, once turned loose, just work without expenses or management. Tell me, now much does Apple pay Akamai for the App Store bandwidth? How many Apple employees are dedicated to the operation of the App Store? I guess you also would like the government to regulate profit margins.

Oh never mind, ignorance is bliss.

 

[kycophpd]

I’ve been trying to get the wife and kids to transition to Apple Music with me for a few years. I finally have a good excuse to tell them they have to do it. I’m one of the few who still have my recurring subscription through the App Store.

 

[sw1tcher]

developers who cry about Apple's 30% cut are being stupidly unreasonable.

Apple's refusal to allow developers from mentioning within their own app a 3rd party payment option is stupidly unreasonable. Is Apple so afraid of competition and the loss of their 15% or 30% cut?

I'm not sure how taking choice away from customers is the right message. Isn't that the issue that they are battling... lack of choice?

Lack of choice is Apple's doing.

Now Apple is being forced to give users a choice.

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[bsolar]

I’ve been trying to get the wife and kids to transition to Apple Music with me for a few years. I finally have a good excuse to tell them they have to do it. I’m one of the few who still have my recurring subscription through the App Store.

They don't have to do it though, the subscription can simply be purchase from Spotify directly.

 

[sw1tcher]

Not going to impact them. Spotify has a very, very strong following.

Of course it won't impact them just like it doesn't impact Netflix who also doesn't allow subscrption payments within their app.

 

[MacDaddyPanda]

I only use spotify for podcasts anyway. So the free ad sponsored one is fine. So not worth subscribing for. Apple Music for me is still superior music player until someone else dethrones them. For now it's AM.

 

[Born Again]

How about make the subscription cheaper by purchasing direct or raise the price if you use the app?

 

[Blowback]

I do feel that it's time for Apple to reduce the rates. Yes, they need to cover credit card fees that they pay, but do they need an extra 10-25% on top of that? No. 5% would be reasonable given their transaction volume. That's how the market works, but in the case of digital goods, there are no supply constraints. The supply is virtually unlimited.

I'll try that tact the next time I go food shopping. I'll tell them that 'I feel' it's time they reduced the prices/ profits. Will get back to you on how it goes.....

 

[rafark]

I do feel that it's time for Apple to reduce the rates. Yes, they need to cover credit card fees that they pay, but do they need an extra 10-25% on top of that? No. 5% would be reasonable given their transaction volume. That's how the market works, but in the case of digital goods, there are no supply constraints. The supply is virtually unlimited.

Of course they need it. How else are the supposed to reach 3T? (It’s sarcasm, just in case)

 

[sw1tcher]

How about make the subscription cheaper by purchasing direct or raise the price if you use the app?

That's exactly what Twitter and other app developers (e.g. Audible) are doing

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[bsolar]

I'll try that tact the next time I go food shopping. I'll tell them that 'I feel' it's time they reduced the prices/ profits. Will get back to you on how it goes.....

You do that by going shopping somewhere else or eating your own food. That's exactly what Spotify is doing by the way, they don't want to use Apple's payment processing service and will use their own or a cheaper third-party alternative.

 

[erikkfi]

How about make the subscription cheaper by purchasing direct or raise the price if you use the app?

So Apple should be allowed to distort the market such that competitors' services must be priced uncompetitively so they can get their desired cut?

 

[obviouslogic]

Apple’s Store, Apple’s platform. Developer’s agreed to the rules when they signed up. They could’ve just made a player app, like Amazon did with Kindle. No one had a problem finding Kindle’s website even though they weren’t directed to it. Spotify could’ve done the same thing. Hell, Spotify could’ve advertised their website directly to those users in their streams.

Having said that, I have always had a problem with that anti-steering rule. Sure no side loading or 3rd party app stores makes sense, but that rule always seemed user hostile rather than actually trying to protect users.

 

[LeeW]

I'll try that tact the next time I go food shopping. I'll tell them that 'I feel' it's time they reduced the prices/ profits. Will get back to you on how it goes.....

The difference here is that not just people are turning against them on their app store charges, courts are also. I suspect that Apple has two options. Lower charges to appease everyone or risk being forced to allow alternate app stores and side loading of apps. It's coming, especially in other app stores and side-loading.

 

[Apple Fan 2008]

I thought they already did this.

 

[TheLunaPark]

If they could also stop making their app worse that'd be lovely, thanks. Stop filling it with bloated garbage in an attempt to turn it into some kind of social media app. Stop pushing podcasts on people that want to just listen to music.

 

[contacos]

All redundant by March 2024 in the EU at least anyway