Spotify encourages customers to bypass Apple's App Store, save $3 per month on subscriptions

Posted:
in iPod + iTunes + AppleTV edited July 2015
In an effort to bypass Apple's 30 percent cut of all App Store purchases, and in the wake of the launch of Apple Music, Spotify has begun emailing customers who subscribed through their iOS to convert their subscription to a Web-based one and save $3 per month.




Spotify charges Premium subscribers through iOS $12.99 per month because of Apple's 30 percent fee on all purchases, including ongoing subscription. But customers who sign up through the company's website pay just $9.99 per month.

At $12.99 per month, Spotify subscribers on iOS are paying more than they would for Apple's competing Apple Music, which is priced at $9.99. That's likely a major reason why Spotify began emailing subscribers this week, telling them to convert their subscriptions and save money. The emails were first noted by The Verge.

Earlier this year, an unnamed source allegedly from Spotify expressed frustration over Apple's cut of App Store sales, asserting that the 30 percent fees would prevent the service from competing with the then-forthcoming Apple Music.

Compounding the issue is the fact that Apple's App Store rules prevent apps from linking to external storefronts. That's what has apparently led Spotify to emailing customers directly, bypassing Apple's policies entirely.

Similar arguments also arose when the App Store first began allowing in-app subscriptions. At the time, however, complaints were mostly from magazines and newspapers.
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Comments

  • Reply 1 of 45
    gprovidagprovida Posts: 247member
    If this violates Apple's rules on apps, then the app may be pulled.
  • Reply 2 of 45
    applezillaapplezilla Posts: 941member

    Is Spotify still a thing?

  • Reply 3 of 45
    gregquinngregquinn Posts: 77member

    Sounds like it might violate Apple's ToS...

  • Reply 4 of 45
    agramonteagramonte Posts: 345member

    Meh!, I got it for 9.99 and the 2 months free from my PlayStation account. You shouldn't pay for it via the Appstore.

  • Reply 5 of 45
    r00fusr00fus Posts: 245member



    Well, if Apple makes it easier for users to sign up for Spotify directly on iOS then that's the "finder's commission" that Apple gets.

     

    More power to spottily to make it easier to sign up (and enter CC details, etc) on their website.  

     

    Many, many people simply prefer using the App Store and just pressing their finger on Touch ID. Maybe enough to justify the 30% cut. 

  • Reply 6 of 45
    slurpyslurpy Posts: 5,116member

    Pretty pathetic of them to transfer 100% of the appstore fee to the customer. Typically, this is the cost of doing business, and having access to a platform of hundreds of millions of active users that are actually willing to pay for shit. Spotify should eat the cost, or at least some of it. 

  • Reply 7 of 45
    eric44eric44 Posts: 6member
    agramonte wrote: »
    Meh!, I got it for 9.99 and the 2 months free from my PlayStation account. <span style="line-height:1.4em;">You shouldn't pay for it via the Appstore.</span>

    I actually got a really good deal from them a few months ago. If I signed up through their website, I get 3 months for $0.99. Then $9.99 after that. I like it just ? music has more of a variety
  • Reply 8 of 45
    izensteinizenstein Posts: 26member
    Apple does now have to be careful though because they can't be construed as anti-competitive and monopolistic, especially if they have the new Apple Music streaming option. If people can sign up outside of app and then log into account at $9.99/month so be it, but if you purchase through app then it should be Apple's prerogative to charge fee. It's a fine line.
  • Reply 9 of 45
    Quote:

    Originally Posted by gregquinn View Post

     

    Sounds like it might violate Apple's ToS...


     

     

    Quote:

    Originally Posted by gprovida View Post



    If this violates Apple's rules on apps, then the app may be pulled.

     

     

    Quote:

    Originally Posted by iZENstein View Post



    Apple does now have to be careful though because they can't be construed as anti-competitive and monopolistic, especially if they have the new Apple Music streaming option. If people can sign up outside of app and then log into account at $9.99/month so be it, but if you purchase through app then it should be Apple's prerogative to charge fee. It's a fine line.



    This is how it's been for awhile now with such services (magazine subs, etc). They can't link to the outside from within the app, but to my knowledge there's nothing saying the company can't email them about signing up on a website, etc. So both Apple and Spotify are operating within the existing AppStore rules.

  • Reply 10 of 45
    rob bonnerrob bonner Posts: 230member
    Yeah, they just have to support both, encouragement is OK. And it's nice there is a discount, had not seen that one before.
  • Reply 11 of 45
    sirlance99sirlance99 Posts: 1,142member
    applezilla wrote: »
    Is Spotify still a thing?

    The #1 paying streaming music service, yes it's still a thing.
  • Reply 12 of 45
    rogifanrogifan Posts: 10,669member
    Perhaps Apple should allow redirects to outside the AppStore for certain things. it makes no sense that a company like Spotify or Netflix etc. should have to pay a 30% fee just for Apple to process the credit card transaction. Especially when they do their own processing as well. Having said that I have no sympathy for Spotify because they were perfectly fine with charging consumers that 30% "tax" before Apple music launched. so this has nothing to do with looking out for the consumer. It's all about trying to prevent a mass exodus to Apple music.
  • Reply 13 of 45
    izensteinizenstein Posts: 26member
    rogifan wrote: »
    Perhaps Apple should allow redirects to outside the AppStore for certain things. it makes no sense that a company like Spotify or Netflix etc. should have to pay a 30% fee just for Apple to process the credit card transaction. Especially when they do their own processing as well. Having said that I have no sympathy for Spotify because they were perfectly fine with charging consumers that 30% "tax" before Apple music launched. so this has nothing to do with looking out for the consumer. It's all about trying to prevent a mass exodus to Apple music.

    Also I imagine Spotify wants government action against Apple ala the whole Amazon collusion book thang. I don't want Apple messed up by this stuff. The intent of the Apple music service is great. Just want them to not screw this up.
  • Reply 14 of 45
    radster360radster360 Posts: 540member

    First, I think Apple made a statement that they are looking into reducing the commission. Secondly, I don't think that there is truth about the fact that Apple is taking 30% every month for Spotify users and that too if the monthly charges are being made through credit card or a recurring basis. I think the reasoning provided by Spotify is not accurate.

     

    Secondly, for other App developers, the percentage taken by Apple is nothing compared to what the App developer would have to do if they have to do all there work by themselves (creating e-commerce site, managing payment, etc.) Yes, like Android Apps has other market places,  unlike Apple. But, for Apple, for the reputation and creditability they want to make sure that roque Apps do not get on their device, because  for Apple they are not only the OS manufacturer, but the hardware too. The consumer are going to blame Apple and not the App that is draining the battery or the app that is posting some consumer data in background to some public website. Matter of fact, Google learned the hard way and they are actually going in the direction of following Apple Store model, a control App store.

     

    Bottom line, Spotify is doing everything to survive in the space and if that means pushing some inaccurate information and justifying why why are charging more than Apple Music.

  • Reply 15 of 45
    kent909kent909 Posts: 708member

    Since there is 3 months free it really works out to ~$7.50/mo for the first year of Apple Music.  Maybe Spotify should be selling at their website for $7.50. So instead of paying Apple to collect the money they can pay a bunch of other companies to collect the money. Like doing it this way has no cost associated with it. Spotify is just running scared. Not to mention that after Apple takes their 30% that leaves $9.09 for Spotify. Now they want the customer to pay $9.99 which is $.90 more than they get via Apple. Sounds like they could do more than they are.

  • Reply 16 of 45
    radster360radster360 Posts: 540member
    Quote:

    Originally Posted by Rogifan View Post



    Perhaps Apple should allow redirects to outside the AppStore for certain things. it makes no sense that a company like Spotify or Netflix etc. should have to pay a 30% fee just for Apple to process the credit card transaction. Especially when they do their own processing as well. Having said that I have no sympathy for Spotify because they were perfectly fine with charging consumers that 30% "tax" before Apple music launched. so this has nothing to do with looking out for the consumer. It's all about trying to prevent a mass exodus to Apple music.



    I am not buying Spotify's reasoning for charging the premium because of Apple's 30%. If Apple was taking 30% for processing the credit card transaction as being claimed, Apple would have been in much bigger problem long time ago. Spotify is trying to made a case out on non-case. And sadly, the way DOJ has been handling all Apple cases and if Spotify does manage to make a case - this is once again going to be and injustice to Apple.

  • Reply 17 of 45
    Quote:

    Originally Posted by radster360 View Post

     



    I am not buying Spotify's reasoning for charging the premium because of Apple's 30%. If Apple was taking 30% for processing the credit card transaction as being claimed, Apple would have been in much bigger problem long time ago. Spotify is trying to made a case out on non-case. And sadly, the way DOJ has been handling all Apple cases and if Spotify does manage to make a case - this is once again going to be and injustice to Apple.




    The thing is, Apple DOES take 30% off the top for purchases made in the App store. This is for app purchases and in app purchases, such as subscriptions.

     

    It's tough for business that have to compete against products that Apple offers, as Apple makes money either way.  I'm guessing that a large number of Apple customers won't deal with the hassle of going to a website to sign up an account, and then have to enter in a separate credit card transaction, and deal with all of that mess versus hitting buy now right on the iPhone.  Instead, for the same price and no hassle, they can simply subscribe to Apple's music service.

  • Reply 18 of 45
    rogifanrogifan Posts: 10,669member
    radster360 wrote: »

    I am not buying Spotify's reasoning for charging the premium because of Apple's 30%. If Apple was taking 30% for processing the credit card transaction as being claimed, Apple would have been in much bigger problem long time ago. Spotify is trying to made a case out on non-case. And sadly, the way DOJ has been handling all Apple cases and if Spotify does manage to make a case - this is once again going to be and injustice to Apple.

    Both Spotify and Rdio charge $12.99 in-app and $9.99 outside of the App Store. That's exactly 30% more. And yes Apple does take a 30% cut of in-app purchases.
  • Reply 19 of 45
    dasanman69dasanman69 Posts: 12,976member
    r00fus wrote: »

    Well, if Apple makes it easier for users to sign up for Spotify directly on iOS then that's the "finder's commission" that Apple gets.

    More power to spottily to make it easier to sign up (and enter CC details, etc) on their website.  

    Many, many people simply prefer using the App Store and just pressing their finger on Touch ID. Maybe enough to justify the 30% cut. 

    A perpetual 30% cut isn't a 'finder's fee'.
  • Reply 20 of 45
    slurpyslurpy Posts: 5,116member
    Quote:

    Originally Posted by SirLance99 View Post





    The #1 paying streaming music service, yes it's still a thing.

     

    Not for long. 

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