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Spotify CEO pleads for iPhone users to stop paying through Apple's App Store

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gruenel

Member
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 Huge price premiums for outdated specs, proprietary everything that's terrible for the environment at exploitative prices, murderous factory conditions, and absolutely everything locked behind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.
Just about everything in this post is wrong
 

Stumpokapow

listen to the mad man
I... don't understand how Spotify gets away with this. Last I checked, Apple strongarmed people by disallowing them for selling subscriptions externally for less than they do through iTunes?
 

Grazzt

Member
I wanted to try apple music, but it demanded me to choose a membership plan before I can get the free trial, so no thanks.
 

Dalek

Member
Just about everything in this post is wrong

The punctuation looks correct, but otherwise is so out there to the point that Glen Beck would cringe.

I wanted to try apple music, but it demanded me to choose a membership plan before I can get the free trial, so no thanks.

I was put off by that too-but I don't listen to a ton of music, so I just wanted to test it out. I immediately set a reminder through Siri to cancel in 89 Days. (If I end up not caring for it.)
 

Sai-kun

Banned
I'm glad I still got my student discount plan going. $4.99 is expensive enough for me, can't imagine paying almost $10 more!
 

numble

Member
The punctuation looks correct, but otherwise is so out there to the point that Glen Beck would cringe.



I was put off by that too-but I don't listen to a ton of music, so I just wanted to test it out. I immediately set a reminder through Siri to cancel in 89 Days. (If I end up not caring for it.)
You can cancel it today and it'll only stop working when your trial is up.
 
Seems extremely risky to ask people to unsubscribe and then come back at some future date to subscribe again.

They really couldn't program it so people could presubscribe?
 
It seems like a very inopportune time to tell Apple device users to cancel their subs, even if just to re-sub - they might just use the unsubscribing period to try Apple Music and stick with that.
 

mrmisterwaa

Neo Member
I... don't understand how Spotify gets away with this. Last I checked, Apple strongarmed people by disallowing them for selling subscriptions externally for less than they do through iTunes?

They technically pushed the "Apple tax" onto the user base instead of them paying out of their pocket. The amount Apple would be getting would be the exact same.

I don't see Apple could possibly do anything to Spotify any more (now that they have released Apple Music and would be seen as anti-competition).
 
D

Deleted member 17706

Unconfirmed Member
All this does is make Spotify look bad to me. I had no idea they were pushing the Apple tax straight onto consumers up until now.

Either way, as has been pointed out, they only care now that their service looks like a poor value to Apple customers when compared to Apple Music at $9.99 a month.
 

KHarvey16

Member
Honestly, it's weird to see it called the "Apple tax." We don't consider the difference in price between what Walmart paid and what the consumer paid to be the "Walmart tax."
 

Majine

Banned
I understand why it's more expensive on iOS. They must get the 9.99 to be able to pay the labels, but it makes Apple Music seem like a better deal for iOS users.
 

mrmisterwaa

Neo Member
Honestly, it's weird to see it called the "Apple tax." We don't consider the difference in price between what Walmart paid and what the consumer paid to be the "Walmart tax."

It's hard to explain what I was thinking in my head but the way I look at it a little differently. Apple knows people are forced to use their ecosystem to purchase things - you can't get Applications* without using their store. When you don't have "true" choice over what you purchase. It's considered greed in my eyes.

I can give you a comparison with Steam. Steam sells you the same game for the same price as any other retailer would. They give you an ecosystem to play your game in. You don't need it.

*without jailbreaking.
 

KHarvey16

Member
It's hard to explain what I was thinking in my head but the way I look at it a little differently. Apple knows people are forced to use their ecosystem to purchase things - you can't get Applications* without using their store. When you don't have "true" choice over what you purchase. It's considered greed in my eyes.

I can give you a comparison with Steam. Steam sells you the same game for the same price as any other retailer would. They give you an ecosystem to play your game in. You don't need it.

*without jailbreaking.

That doesn't make any sense. Are you arguing that because Apple sells things that work on Apple devices, they should not charge anyone anything to use their infrastructure to reach that user base?
 
It's hard to explain what I was thinking in my head but the way I look at it a little differently. Apple knows people are forced to use their ecosystem to purchase things - you can't get Applications* without using their store. When you don't have "true" choice over what you purchase. It's considered greed in my eyes.

I can give you a comparison with Steam. Steam sells you the same game for the same price as any other retailer would. They give you an ecosystem to play your game in. You don't need it.

*without jailbreaking.

Yep, Apple be tripping. Google don't force anyone to use Google Play in their apps. Comixology had to gimp their ios app but they made the Android version use credit cards and Paypal.
 

slit

Member
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.

Maybe seedy is the wrong word, let's just say assholey when your main competitor doesn't do the same thing.

Anyway I was really talking more about Apple putting pressure on record labels to stop Spotify's free tier . If you don't think that's seedy, I don't know what to tell you.
 

TomShoe

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

To protect the free subscription service that Spotify has. I believe that as more people turn to streaming music, the revenues will increase, and services like Spotify will be able to pay more royalties. If enough people get invested, I think the free service would be able to sustain itself. It's a shame that artists like Taylor Swift and Apple are trying to quash it in the name of short-term profit.
 
Doesn't seem like pleading as much as just informational. Useful email blast.

I totally get why Spotify charges more for people who subscribe through the App Store. Can't fault them. I'll probably look at Spotify when my Apple Music trial sub expires.
 

mrmisterwaa

Neo Member
That doesn't make any sense. Are you arguing that because Apple sells things that work on Apple devices, they should not charge anyone anything to use their infrastructure to reach that user base?

They should definitely charge but not force people to use only their infrastructure for purchasing options.

Give people access to a slightly more open market.
 

DOWN

Banned
Er Spotify is kind of misconstruing this, as it is actually them jacking up the iTunes price so that they can ignore the Apple cut. Spotify is charging customers the fee that anything on the App Store pays.
 

cDNA

Member
I... don't understand how Spotify gets away with this. Last I checked, Apple strongarmed people by disallowing them for selling subscriptions externally for less than they do through iTunes?

No, they backed out of that provision after complains of many companies and threats of antitrust suits.
 
Er Spotify is kind of misconstruing this, as it is actually them jacking up the iTunes price so that they can ignore the Apple cut. Spotify is charging customers the fee that anything on the App Store pays.

I would imagine when you come up with a subscription service model, you can't just absorb the losses of $3 a month from millions of subscribers willy nilly.

I'm surprised more services don't do this. It seems totally rational to me.
 

werks

Banned
That doesn't make any sense. Are you arguing that because Apple sells things that work on Apple devices, they should not charge anyone anything to use their infrastructure to reach that user base?
Yes, Google music competes with Spotify in the play store. Google and Spotify both pay publishers about the same amount and both have revenue of less than 30% of the $10 coming in. Google doesn't compete with Spotify by charging them a 30% cut they cannot afford or by forcing Spotify to jack up their prices above the market rate.

Tell me how it benefits you as an ios user that there are no music sub or ebooks you can buy at the market rate in ios other than Apple?

It's an anti consumer practice that takes advantage of prevailing publisher rates to push the competition out of offering IAP and leaving Apple as the only option instead of just building a better product.

Let me guess, you were fine with apple colluding with book publishers to jack up eBook prices also.
 

davepoobond

you can't put a price on sparks
Er Spotify is kind of misconstruing this, as it is actually them jacking up the iTunes price so that they can ignore the Apple cut. Spotify is charging customers the fee that anything on the App Store pays.

"you pay the fee"
 
Yes, Google music competes with Spotify in the play store. Google and Spotify both pay publishers about the same amount and both have revenue of less than 30% of the $10 coming in. Google doesn't compete with Spotify by charging them a 30% cut they cannot afford or by forcing Spotify to jack up their prices above the market rate.

Tell me how it benefits you as an ios user that there are no music sub or ebooks you can buy at the market rate in ios other than Apple?

It's an anti consumer practice that takes advantage of prevailing publisher rates to push the competition out of offering IAP and leaving Apple as the only option instead of just building a better product.

Let me guess, you were fine with apple colluding with book publishers to jack up eBook prices also.

The charge is for all paid and ad apps. It is due to the App Store that app makers more money percentage wise than any other store
 

werks

Banned
How do app businesses survive when app stores take up 30% of your revenue? Insane.
Normal apps survive because the 30% is built into the cost, its the standard rate across the industry.

Streaming music and eBook apps don't have the same luxury because 30% is their total revenue. It forces ios users to either default to Apple music and book store or purchase on the web. Either way, I don't see any benefit to the consumer.
 

NimbusD

Member
Yeah, I guess it's one thing when you're not a direct competitor to the product in your store. Run your store how you want it. Once you put out something that's competing, it's completely immoral to continue to force your competitor to raise their prices as it's pretty clearly an attempt to get users to favor your own offering. Don't see this lasting.
 
To protect the free subscription service that Spotify has. I believe that as more people turn to streaming music, the revenues will increase, and services like Spotify will be able to pay more royalties. If enough people get invested, I think the free service would be able to sustain itself. It's a shame that artists like Taylor Swift and Apple are trying to quash it in the name of short-term profit.

Interesting. How much farther does Spotify have to go? I feel like they already have near peak penetration.
 

numble

Member
Normal apps survive because the 30% is built into the cost, its the standard rate across the industry.

Streaming music and eBook apps don't have the same luxury because 30% is their total revenue. It forces ios users to either default to Apple music and book store or purchase on the web. Either way, I don't see any benefit to the consumer.

If you are saying that 30% is their total revenue, are you saying that Spotify pays the music publishers 70% of the $13 charged on the App Store?
 

Red

Member
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.
Never change, man.
 

werks

Banned
If you are saying that 30% is their total revenue, are you saying that Spotify pays the music publishers 70% of the $13 charged on the App Store?
No, I'm saying spofity cannot afford to offer the market rate ($10) on ios. It's the same reason no other music sub service or eBook service offers IAP on ios but can offer IAP on the play store.

It's a net negative to any ios user and I can't believe that practice is being defended.
 

BeforeU

Oft hope is born when all is forlorn.
Yeah, I guess it's one thing when you're not a direct competitor to the product in your store. Run your store how you want it. Once you put out something that's competing, it's completely immoral to continue to force your competitor to raise their prices as it's pretty clearly an attempt to get users to favor your own offering. Don't see this lasting.

Didnt they always charged 13$ well before the Apple Music was launched?
 

werks

Banned
Didnt they always charged 13$ well before the Apple Music was launched?
They charge $13 on ios because $3 goes to Apple. If they charged the market rate ($10), they would lose money on every sub.

Spotify offers premium access for $10 on the play store.
 

BeforeU

Oft hope is born when all is forlorn.
They charge $13 on ios because $3 goes to Apple. If they charged the market rate ($10), they would lose money on every sub.

Spotify offers premium access for $10 on the play store.

Yes I know, but I am saying that this has always been the case. Its not a step to get people use their cheaper product by increasing competitors price.
 

KHarvey16

Member
They should definitely charge but not force people to use only their infrastructure for purchasing options.

Give people access to a slightly more open market.

It's a closed system and it's perfectly fine. If people weren't willing to use it it wouldn't be so popular.

Yes, Google music competes with Spotify in the play store. Google and Spotify both pay publishers about the same amount and both have revenue of less than 30% of the $10 coming in. Google doesn't compete with Spotify by charging them a 30% cut they cannot afford or by forcing Spotify to jack up their prices above the market rate.

Tell me how it benefits you as an ios user that there are no music sub or ebooks you can buy at the market rate in ios other than Apple?

It's an anti consumer practice that takes advantage of prevailing publisher rates to push the competition out of offering IAP and leaving Apple as the only option instead of just building a better product.

Let me guess, you were fine with apple colluding with book publishers to jack up eBook prices also.

A few things:

Can you buy Spotify premium on google play? If so, how much does it cost? If it's $10, what happened to google's 30% commission they charge everyone else?
 
Can you buy Spotify premium on google play? If so, how much does it cost? If it's $10, what happened to google's 30% commission they charge everyone else?

No. You can download the app for free, and you'll be directed to subscribe to Premium online if you'd like (this is how it worked when I did it, I dunno if it's changed since then).
 

numble

Member
No, I'm saying spofity cannot afford to offer the market rate ($10) on ios. It's the same reason no other music sub service or eBook service offers IAP on ios but can offer IAP on the play store.

It's a net negative to any ios user and I can't believe that practice is being defended.

Tidal, Rdio, Rhapsody, Beats (before it was acquired) all offer IAP, so I don't see why you can say "no other music sub service or eBook service offers IAP on ios".
 

numble

Member
They charge $13 on ios because $3 goes to Apple. If they charged the market rate ($10), they would lose money on every sub.

Spotify offers premium access for $10 on the play store.

How would they lose money on every sub? Do they give 70% of $13 to the music publishers? I think they give 70% of their $9 cut to the publishers.

I think if they got net revenue of $7, they would give 70% of $7, they would not give 70% of $10 to the music publishers. They charge $5 for student subscriptions and give 70% of their net revenue to publishers, not 70% of $10.
 
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