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[Dalek]

Spotify urges iPhone customers to stop paying through Apple's App Store


Spotify is trying to raise awareness around the fact that it's cheaper to subscribe on the web instead of through Apple's App Store. The leading subscription music service plans to email iPhone customers the below note encouraging them, if they haven't already, to start paying at Spotify.com and save a few dollars. "In case you didn’t know, the normal Premium price is only $9.99, but Apple charges 30 percent on all payments made through iTunes," the email blast reads. "You can get the exact same Spotify for only $9.99/month, and it’s super simple."

The message is followed with a step-by-step tutorial that explains how to shut off auto-renew through iTunes (so Apple won't keep charging you the higher $12.99-per-month rate) and transfer your account to the web — something that can only be done once your current subscription lapses. "Pardon us if you can't do this immediately. Your current plan needs to end first," Spotify says.

Apple has received plenty of criticism from rival music services over the 30 percent cut it takes from in-app subscriptions. And those complaints have only grown louder with the launch of Apple Music, the company's own all-you-can-eat music product. Implementing pricing parity across the web and iOS would mean less money for Spotify, a company that already posts bigger and bigger losses the larger it grows. Apple is reportedly facing inquiries from the US Justice Department and FTC over its rumored pressuring of record labels to dismantle Spotify's free streaming tier, a feature that sets it apart from Apple Music.

 

[xxracerxx]

I didn't even know you could pay through Apple for this. Don't people know that it is $10 a month and not $13?

 

[slit]

That's a seedy business practice and Apple can lick my nutsack.

 

[tim.mbp]

How many people use iTunes gift cards though.

 

[old]

And if you're a student, you can get premium for $5 a month.

 

[davepoobond]

Don't subscriptions services like Hulu force you to do it through the Internet and not the app? Why does spotify even allow that option if they don't want it to happen?

 

[-Plasma Reus-]

Screw you apple. Should be named and shamed.

 

[riotous]

That's a seedy business practice and Apple can lick my nutsack.

I think it's kind of seedy for Spotify to raise its price on iTunes myself. At least it's seedy to raise it the entire 30%.

 

[Earthstrike]

Wait, how does the user get a little bit of extra cash in their pocket? They are paying 9.99 in both cases aren't they? Or is it more expensive to purchase through the apple store?

Edit: I guess they charge more on itunes.

 

[The M.O.B]

And if you're a student, you can get premium for $5 a month.

The only reason i'm still subscribed. I use Spotify just enough to warrant the $5.

 

[slit]

I think it's kind of seedy for Spotify to raise its price on iTunes myself. At least it's seedy to raise it the entire 30%.

Actually I referring more to trying to dismantle Spotify's free tier

 

[Enco]

I think it's kind of seedy for Spotify to raise its price on iTunes myself. At least it's seedy to raise it the entire 30%.

It totally is.

But this is Spotify we are talking about.

 

[soco]

Screw you apple. Should be named and shamed.

How different is their practice to that of the general credit card charges (don't credit-branded debit cards also fall in this category too?)

 

[Treythalomew]

Don't subscriptions services like Hulu force you to do it through the Internet and not the app? Why does spotify even allow that option if they don't want it to happen?

Because they were losing out on sales by not having the option at all. Spotify is currently number 5 on the top grossing chart meaning it is generating a lot of money through the in app subscription.

 

[see5harp]

This is a little like complaining about Gamestop. Alright you don't like it pull your app off the app store where you have millions and millions of consumers with apple gift cards to spend.

 

[SmokyDave]

Don't worry Mr Spotify, I suspect many iPhone users will stop subscribing to your service via the App Store within the next three months or so. It's sorted.

 

[Zaph]

Apple needs to relax the 30% IAP requirement. They already wave it if you're selling physical goods, but I'd like to see that extended to apps offering digital purchases/subscriptions for predominately third-party content.

Netflix, Kindle and the like are never going to allow IAP's under current rules, so Apple isn't at risk of losing potential revenue.

 

[Archer]

Only sucka MCs pay thru Apple.

 

[FZZ]

Don't worry Mr Spotify, I suspect many iPhone users will stop subscribing to your service via the App Store within the next three months or so. It's sorted.

lol this

 

[liliththepale]

Spotify takes 70% of the $12.99, so $9.09, so they'll get $0.90 more per sub from the online version. Makes sense that they'd prefer that.

 

[Dalek]

Don't worry Mr Spotify, I suspect many iPhone users will stop subscribing to your service via the App Store within the next three months or so. It's sorted.

This was my first thought too.

 

[Lunaniem]

30% is pretty standard for digital, Valve takes the same percent for everything on Steam.

 

[The Faceless Master]

i thought Apple didn't let companies charge more on iTunes and the company had to eat the 30% difference

 

[Sir Abacus]

Remember kids: Thanks to Apple providing competition Spotify now give a shit about you saving $3/month that would otherwise help their biggest competitor. Otherwise they couldn't really give a fuck so long as they got their $10/month.

 

[Tallshortman]

Apple trying to get spotify free streaming dismantled because they can't properly compete is some Microsoft level monopolistic bullshit right there.

 

[TomShoe]

Don't worry Mr Spotify, I suspect many iPhone users will stop subscribing to your service via the App Store within the next three months or so. It's sorted.

I hope Apple Music fails.

 

[BoboBrazil]

I'm sure those Apple users feel more exclusive paying the revolutionary $12.99 through the apple store.

 

[Vyer]

I always find the complaining about the app store cut amusing when coming from businesses that have benefited a great deal from being on the app store to begin with.

Similar to the defense when Comixology/Amazon pulled their in app store. Suddenly it was all about saving the customers money or some shit. Spotify didn't really give a shit about this for their customers - passing the 30% on to them happily - until Apple Music was on the horizon.

Don't worry Mr Spotify, I suspect many iPhone users will stop subscribing to your service via the App Store within the next three months or so. It's sorted.

heh

 

[liliththepale]

I hope Apple Music fails.

Any specific reason, or just a general distaste for Apple?

 

[CaptainSlow]

Wow. That's pretty shitty of Apple to do but then again, I expect nothing less from Apple.

 

[railGUN]

So Spotify wants the exposure and distribution of the App Store, but won't eat the cut Apple takes, and instead passes that along to their customer?

 

[Lima]

Don't worry Mr Spotify, I suspect many iPhone users will stop subscribing to your service via the App Store within the next three months or so. It's sorted.

Yup already canceled spotify and signed up for Apple Music. If only for the better integration.

 

[slit]

I hope Apple Music fails.

It won't and once again an American tech company will stomp the puny European one into the dirt.

 

[see5harp]

Wow. That's pretty shitty of Apple to do but then again, I expect nothing less from Apple.

It's ease of use and a huge population of people with apple gift cards and credit on their account. You can pay for packs of Hearthstone cards using Battle.net as well but why would you when you can just put your fingerprint on the home screen in a few seconds on the shitter? You don't see Blizzard crying about it.

 

[Anno]

How magnanimous of them to direct their consumers towards the lower priced option now, more than a year after the initial release. Good lookin out.

 

[werks]

30% is pretty standard for digital, Valve takes the same percent for everything on Steam.

This is a pretty false argument. For any ebook or music sub company to offer IAP and remain price competitive with apple, they would have to take a 30% (total) loss because everyone basically pays the publishers the same amount.

Netflix, Kindle and the like are never going to allow IAP's under current rules, so Apple isn't as risk of losing potential revenue.

Apple wants to be the only one offering music or ebooks sub on IOS, that's why they insists on the 30% fee. They know that no one can offer IAP in a competitive price with apple and stay in business.

I can download spotify on my android phone through the play store and get $10 premium access, I do the same thing on my ipad and I have to pay $13. The only reason apple does that is so they don't have to compete on price.

 

[werks]

So Spotify wants the exposure and distribution of the App Store, but won't eat the cut Apple takes, and instead passes that along to their customer?

Thats bullshit, google doesn't charge spotify 30%. 30% is all the revenue any music sub company brings in after paying ~70% to publishers.

 

[numble]

The only reason apple does that is so they don't have to compete on price.

So when Apple charges 30% for the MLB or NBA app, what is their competing service?

 

[infiniteloop]

Remember kids: Thanks to Apple providing competition Spotify now give a shit about you saving $3/month that would otherwise help their biggest competitor. Otherwise they couldn't really give a fuck so long as they got their $10/month.

Right. They care now they have competition.

 

[TekGryphon]

That's a seedy business practice and Apple can lick my nutsack.

I can't think of a damn thing Apple does that isn't seedy. Huge price premiums for outdated specs, proprietary everything that's terrible for the environment at exploitative prices, murderous factory conditions, and absolutely everything locked behind restrictive environments and ridiculous paywalls.

They're the Gucci of the technology world and another pillar in America's failed consumer culture.

 

[Technosteve]

I can't think of a damn thing Apple does that isn't seedy. Huge price premiums for outdated specs, proprietary everything that's terrible for the environment at exploitative prices, murderous factory conditions, and absolutely everything locked behind restrictive environments and ridiculous paywalls.

They're the Gucci of the technology world and another pillar in America's failed consumer culture.

I see no truth in any of your statements, it's like i'm looking at the tesseract and all i see is fan boy hate. Point at this iphone where apple touched you

 

[Dalek]

I see no truth in any of your statements, it's like i'm looking at the tesseract and all i see is fan boy hate. Point at this iphone where apple touched you

.

 

[infiniteloop]

I can't think of a damn thing Apple does that isn't seedy. Huge price premiums for outdated specs, proprietary everything that's terrible for the environment at exploitative prices, murderous factory conditions, and absolutely everything locked behind restrictive environments and ridiculous paywalls.

They're the Gucci of the technology world and another pillar in America's failed consumer culture.

Did Tim Cook run over your dog too?

 

[Majine]

I can't think of a damn thing Apple does that isn't seedy. Huge price premiums for outdated specs, proprietary everything that's terrible for the environment at exploitative prices, murderous factory conditions, and absolutely everything locked behind restrictive environments and ridiculous paywalls.

They're the Gucci of the technology world and another pillar in America's failed consumer culture.

I know, it's great!

 

[Zeyphersan]

Don't subscriptions services like Hulu force you to do it through the Internet and not the app? Why does spotify even allow that option if they don't want it to happen?

Exactly. The VUDU app won't even let you buy movies through it because they'd have to give Apple a 30% cut

Spotify, just don't let people sub through the App store.

 

[Firelord Chargrilled]

I can't think of a damn thing Apple does that isn't seedy. Huge price premiums for outdated specs, proprietary everything that's terrible for the environment at exploitative prices, murderous factory conditions, and absolutely everything locked behind restrictive environments and ridiculous paywalls.

They're the Gucci of the technology world and another pillar in America's failed consumer culture.

Yeah but none of that is seedy or shady while maybe expect the factory shit but that rest mostly on Foxconn.

 

[subrock]

That's a seedy business practice and Apple can lick my nutsack.

Why is it seedy? Spotify sets their own price in the App Store. They could easily make it equal. They just don't because they want the full $10. The 30% Apple takes has always been there, so if they don't like the terms, they can always leave the platform.


Also, I'm fairly sure that you aren't allowed to do this according to the in app purchase ToS.

 

[Technosteve]

.

my favorite iphone feature, it just works TM

 

[Maninthemirror]

Who set the Apple price Spotify ? You did Spotify

Who wants direct access to how you pay and what you paid with ? You do Spotify

This was simply a ways to get attention in the news during Apple music launch

Apple , just like Steam takes 30% of the cut because like Steam, apps make a lot of money through their ecosystem

 

[SuperPac]

Who set the Apple price Spotify ? You did Spotify

Who wants direct access to how you pay and what you paid with ? You do Spotify

This was simply a ways to get attention in the news during Apple music launch

Yep.

If they don't like it they could remove the functionality in the app. Except, they like money and they're the #5 top grossing app above Candy Crush. So they won't.