Spotify Updates iPhone App With Out-of-App Payment Options in U.S.

[MacRumors]

As planned, Spotify has updated its iPhone app in the U.S. with out-of-app pricing and subscription options for its Premium plans. The latest version of the app is now available in the App Store, and the added pricing information is rolling out.

Spotify users in the U.S. can now view pricing information for its Individual, Duo, Family, and Student plans directly in the iPhone app, and there are buttons that lead to Spotify's website, where users can complete the payment process.

For many years, Spotify has not allowed users to subscribe to Premium plans directly in its iPhone app, as the company does not want to pay Apple's 30% commission on in-app purchases. That remains the case as of today, but Spotify is now permitted to show buttons and links pertaining to out-of-app payment options, without any limitations.

Spotify shared the following statement today:

In a victory for consumers, artists, creators, and authors, Apple has approved Spotify's U.S. app update. After nearly a decade, this will finally allow us to freely show clear pricing information and links to purchase, fostering transparency and choice for U.S. consumers. We can now give consumers lower prices, more control, and easier access to the Spotify experience. There is more work to do, but today represents a significant milestone for developers and entrepreneurs everywhere who want to build and compete on a more level playing field. It's the opening act of a new era, and we could not be more ready for the show.

This monumental change comes after a U.S. judge ordered Apple to immediately allow apps to show this sort of information, as part of a lawsuit filed by Fortnite maker Epic Games. Apple is also no longer permitted to collect a 27% commission on those out-of-app purchases that are initiated through the App Store. Apple has complied with the order, but the company said it disagrees with the decision and plans to appeal.

The judge enforced these requirements after finding Apple violated a 2021 injunction by imposing too many barriers on out-of-app payment options.

Many other popular iPhone apps will likely be updated with out-of-app subscription buttons and information in the U.S. over the coming days.

Article Link: Spotify Updates iPhone App With Out-of-App Payment Options in U.S.

 

[cjsuk]

I wonder how much it costs Apple to service the millions of copies of their app from the app store?

Perhaps they should offer Epic and Spotify etc to use their own CDN for distribution...

 

[Dorfdad]

Wonder how and if this will effect GeForce now and xcloud native apps coming to the App Store as this was one of the main reasons they only allowed web clients before.

 

[TechWhisperer]

Woohoo! More freedom for users worldwide! Apple’s compelled to switch up those App Store rules is great! Courts are speaking loud and clear: “Tim Apple is a greedy idiot!” 🎉🥂

 

[turbineseaplane]

You have to wonder how many companies were watching this situation and waiting and ready to pounce.

The weeks ahead should be interesting to see who else jumps on board

 

[WarmWinterHat]

I wonder how much it costs Apple to service the millions of copies of their app from the app store?

Perhaps they should offer Epic and Spotify etc to use their own CDN for distribution...

Little to nothing. Bulk bandwidth on Apple's level is cheap.

 

[vertsix]

Excellent news.

 

[arkitect]

Interesting times ahead for Apple Inc.

Losing revenue on services like this as well as the loss of Google's USD20 billion/a will hurt.

So is Tim Cook going to step up and show he is more than a bean counter? Or has it just been a long and easy ride with a lot of "low hanging fruit" bolstering their bottom line?
Price increases on lacklustre products ain't going to cut it for much longer…

The best way out of this would be some stellar products — the Apple of 25 years ago that re-invented itself.

 

[sw1tcher]

I wonder how much it costs Apple to service the millions of copies of their app from the app store?

Perhaps they should offer Epic and Spotify etc to use their own CDN for distribution...

Probably around the same amount it costs Apple to service the millions of copies of the Starbucks, Amazon, Walmart, Bank of America, et al apps since Apple gets no cut from those apps.

Spotify users had to subscribe through the Spotify web site before this. Apple got nothing then and Apple will continue to get nothing now. So what has this changed?

 

[cjsuk]

Probably around the same amount it costs Apple to service the millions of copies of the Starbucks, Amazon, Walmart, Bank of America, et al apps since Apple gets no cut from those apps.

Spotify users had to subscribe through the Spotify web site before this. Apple got nothing before this and Apple will continue to get nothing. So what has this changed?

I'm just wondering who the hell is paying for the distribution costs?

I manage stuff like that. It's not free.

 

[cjsuk]

Little to nothing. Bulk bandwidth on Apple's level is cheap.

We're talking exabytes here across the store. That costs real money even with their CDN structure, discounts and peering.

 

[I7guy]

Probably around the same amount it costs Apple to service the millions of copies of the Starbucks, Amazon, Walmart, Bank of America, et al apps since Apple gets no cut from those apps.

Spotify users had to subscribe through the Spotify web site before this. Apple got nothing then and Apple will continue to get nothing now. So what has this changed?

Optics.

 

[WarmWinterHat]

I'm just wondering who the hell is paying for the distribution costs?

I manage stuff like that. It's not free.

Did you buy your phone and mac, ipad, and watch? Did Apple give them to you, for free?

You did, before you first booted your device. Apple makes ~$500 profit on every base model Pro phone alone.

 

[DelayedGratificationGene]

I would never leave the safety, reliability, security of the Walled Garden and have my various subscriptions and more importantly my financial information with a bunch of numerous 3rd parties. I really don’t want to manage or what is most likely to happen forget I even have subscriptions everywhere and pay for services I’m no longer using or need. That could quickly get out of hand. I’m under the strong belief that an overwhelming amount of people want the same thing that’s why we buy iPhones and use the App Store.

 

[devasan]

The best way out of this would be some stellar products — the Apple of 25 years ago that re-invented itself.

My current MBP is the best Mac laptop I've ever had.

 

[cjsuk]

Did you buy your phone and mac, ipad, and watch? Did Apple give them to you, for free?

You did, before you first booted your device. Apple makes ~$500 profit on every base model Pro phone alone.

That's a fair assessment. I'll give you that

 

[TechWhisperer]

Interesting times ahead for Apple Inc.

Losing revenue on services like this as well as the loss of Google's USD20 billion/a will hurt.

So is Tim Cook going to step up and show he is more than a bean counter? Or has it just been a long and easy ride with a lot of "low hanging fruit" bolstering their bottom line?
Price increases on lacklustre products ain't going to cut it for much longer…

The best way out of this would be some stellar products — the Apple of 25 years ago that re-invented itself.

Lol, stellar products? Unlikely under Cook’s watch. He’s not a “product person” and never will be. We need a second coming of Steve Jobs.

 

[cjsuk]

I would never leave the safety, reliability, security of the Walled Garden and have my various subscriptions and more importantly my financial information with a bunch of numerous 3rd parties. I’m under the strong belief that an overwhelming amount of people want the same thing that’s why we buy iPhones.

Yeah I'm wondering if anyone had to cancel any subscriptions before this. That was fun.

If you have a gym subscription now it was like that but imagine 50 other vendors. One of ours (MSFT) also sent goons around to check we were paying up.

 

[WarmWinterHat]

I would never leave the safety, reliability, security of the Walled Garden and have my subscription and financial information with a bunch of numerous 3rd parties. I’m under the strong belief that an overwhelming amount of people want the same thing that’s why we buy iPhones.

Considering that there are Spotify users in the Apple ecosystem than Apple Music users, I would say the majority are fine paying outside of the App Store. Additionally, I would prefer the security of download my banking apps from my bank directly, not from Apple, since they seem to have a difficult time keeping fakes off the app store.

Personally, I have a iPhone in spite of the walled garden.

 

[macbookpro212]

Humm. If Spotify won't grow it's revenue and market share after this, they won't survive.
No more excuses.

 

[devasan]

I would never leave the safety, reliability, security of the Walled Garden and have my various subscriptions and more importantly my financial information with a bunch of numerous 3rd parties. I’m under the strong belief that an overwhelming amount of people want the same thing that’s why we buy iPhones.

That's my case. The most important 'feature' for me is security. The walled garden is why I buy iPhones.

 

[cocky jeremy]

I wouldn't use Spotify if they had a Premium Prestige + package for free.

 

[WarmWinterHat]

Yeah I'm wondering if anyone had to cancel any subscriptions before this. That was fun.

If you have a gym subscription now it was like that but imagine 50 other vendors. One of ours (MSFT) also sent goons around to check we were paying up.

Many many times. This changes nothing.

I have a few subscriptions, but none through Apple. I prefer to give the company my money directly, instead of a middle-man.

 

[Volk.JP]

I wonder how much it costs Apple to service the millions of copies of their app from the app store?

Perhaps they should offer Epic and Spotify etc to use their own CDN for distribution...

I am sure, they would be more than happy to serve it from their CDNs, but there is no such option, isn't it?

 

[dynAdZ]

Amazing update! Now since you freed some development resources, please add the following features to the next update of the Spotify app: AirPlay 2, native HomePod support, Apple TV app with ambient mode and video playback plus a better audio quality than "bad", better sound quality and browsing etc. for the Apple Watch app. Thanks!