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

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KevinRo

Member
I feel like a 30% cut is way too much, that's almost lawyer level cut. I feel like companies like Valve and Apple should only be taking in 5% to 6% cut in any store purchase. Kind of crazy if you think about it.
 

werks

Banned
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".
Yea you are right, every sub service that offer IAP costs 30% more and other services just refuse to offer it.

I can buy kindle books on Android at market rate, i can sub to netflix on android at market rate. Ios user either get Apple at market rate or pay 30% more. How does that benefit ios users at all?
 

numble

Member
I can buy kindle books on Android at market rate, i can sub to netflix on android at market rate. Ios user either get Apple at market rate or pay 30% more. How does that benefit ios users at all?

How is Netflix not the market rate on iOS?
I get iTunes cards for 20-25% off, so Netflix can be below market rate for me.
 

VoxPop

Member
Yea you are right, every sub service that offer IAP costs 30% more and other services just refuse to offer it.

I can buy kindle books on Android at market rate, i can sub to netflix on android at market rate. Ios user either get Apple at market rate or pay 30% more. How does that benefit ios users at all?

Um, pretty sure Apple doesn't charge the consumer an extra 30%. Spotify itself decided to charge the consumer an extra 30% (or whatever it is) to make up for the money they'd be missing out on. Most (if not all) other subscription services charge the same rate they normally do on iOS.

I love Apple haters :)
 

mrmisterwaa

Neo Member
I feel like a 30% cut is way too much, that's almost lawyer level cut. I feel like companies like Valve and Apple should only be taking in 5% to 6% cut in any store purchase. Kind of crazy if you think about it.

I would be stupid to think that it isn't worth 30% now. When you have such a fan-base - you are paying 30% for exposure to millions of users.

The only thing I don't agree with for Apple is their exposure is forced by their ecosystem. You literally have no alternatives - you have to buy applications with Apple as the "reseller".

You do not need to buy things from Valve to play the games the developers & publishers provide.
 
I feel like a 30% cut is way too much, that's almost lawyer level cut. I feel like companies like Valve and Apple should only be taking in 5% to 6% cut in any store purchase. Kind of crazy if you think about it.

Ironically enough, 30% is Spotify's cut of their revenue.
 
I would be stupid to think that it isn't worth it 30% now. When you have such a fan-base - you are paying 30% for exposure to millions of users.

The only thing I don't agree with for Apple is their exposure is forced by their ecosystem. You literally have no alternatives - you have to buy applications with Apple as the "reseller".

You do not need to buy things from Valve to play the games the developers & publishers provide.

Yeah, but Valve doesn't build the hardware they run on either.
 
Um, pretty sure Apple doesn't charge the consumer an extra 30%. Spotify itself decided to charge the consumer an extra 30% (or whatever it is) to make up for the money they'd be missing out on. Most (if not all) other subscription services charge the same rate they normally do on iOS.

I love Apple haters :)

It's not Apple hating to point out this negatively impacts app developers and subscription models. What's bad for app developers is bad for the consumer, generally. If you've got a subscription plan where you can take a 30% revenue hit, great for you guys, but for everyone else you need a solution. Supporting IAP in a sucky way is better than not at all, for the diehards or people who want to pay with iTunes giftcards.

I don't know what Apple defenders expect app developers like Spotify to do in this situation.
 

werks

Banned
Um, pretty sure Apple doesn't charge the consumer an extra 30%. Spotify itself decided to charge the consumer an extra 30% (or whatever it is) to make up for the money they'd be missing out on. Most (if not all) other subscription services charge the same rate they normally do on iOS.

I love Apple haters :)

Can you name one? You can't buy netflix or hulu on ios either (unless you count appletv as ios).

Can you buy any ebook in app on ios at market rate other than apple's? I can use google play store, kindle or any other ecosystem I choose with in app purchases. You get locked into apple and somehow thats a good thing. If I'm a apple hater, you sure are a consumer hater.
 

numble

Member
Ok, go buy a netflix or hulu sub on an iphone or ipad. Tell me how that works out for you.

Hulu subs work fine.

2PHKmUXl.png
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I guess I was mistaken about Netflix, which I paid through Apple TV with my iTunes credits.
 
I went through the same issue with Rdio. Paid $12.99 through iTunes, then went to the website and saw it was listed as $9..99. When I contacted them they let me know that Apple upcharges instead of taking off their 30% from the $9.99. They showed me how to cancel and reapply through the web.

I was pissed. Fucking Apple are ripping people off.

Edit: It should also say on the app store that's it's cheaper on the web too, but I bet that's not allowed.
 

KHarvey16

Member
I went through the same issue with Rdio. Paid $12.99 through iTunes, then went to the website and saw it was listed as $9..99. When I contacted them they let me know that Apple upcharges instead of taking off their 30% from the $9.99. They showed me how to cancel and reapply through the web.

I was pissed. Fucking Apple are ripping people off.

Edit: It should also say on the app store that's it's cheaper on the web too, but I bet that's not allowed.

Rdio set the price, not Apple.
 

gcubed

Member
Obviously people complaining need to take Jeb Bush's advice and work a few more hours and quit whining about what Apple decided is best for you.
 

DOWN

Banned
A lot of people here are confused and accusing Apple of the up charge. Apple doesn't set the prices. Most apps, like retail stores do when they set prices, know their costs and set prices accordingly. Spotify is just in a weird situation since they offer their product on and off of third party stores. Just like Target is covering the cost of credit card swipe fees when they sell an item, Spotify chose to price for the store cut and pass it right to the consumer while wording it like it was Apple pricing it to make them sound innocent.
 

werks

Banned
I went through the same issue with Rdio. Paid $12.99 through iTunes, then went to the website and saw it was listed as $9..99. When I contacted them they let me know that Apple upcharges instead of taking off their 30% from the $9.99. They showed me how to cancel and reapply through the web.

I was pissed. Fucking Apple are ripping people off.

Edit: It should also say on the app store that's it's cheaper on the web too, but I bet that's not allowed.

Not only isnt it allowed, they arent allowed to give you a link in the app to sign up, they aren't allowed to let you use your CC to sign up in app. Only option is IAP with +30%.

Music subscribers pay ~70% of the $10 to pubs. The other ~$3 is for their business model. Apple wants all of it and no smart business will bankrupt themselves. 1 user that gives a company a profit is better than a 100 million users that lose the company money.

The funniest part is that I bet apple music is $10 on android, no service will be $10 on IOS other than apple music
 

numble

Member
Not only isnt it allowed, they arent allowed to give you a link in the app to sign up, they aren't allowed to let you use your CC to sign up in app. Only option is IAP with +30%.

Music subscribers pay ~70% of the $10 to pubs. The other ~$3 is for their business model. Apple wants all of it and no smart business will bankrupt themselves. 1 user that gives a company a profit is better than a 100 million users that lose the company money.

The funniest part is that I bet apple music is $10 on android, no service will be $10 on IOS other than apple music

Are you sure their deal is to give 70% of the $10 to publishers? So when they have people sign up for discounted student rates for $5, that are paying the publishers $7?

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 that net revenue to publishers, not 70% of $10.

For the free streaming tier, they definitely do not pay publishers 70% of $10, but a portion of the net revenue from the ad revenue they earn on the free tier.
 
Just about everything in this post is wrong

Apple uses industry-standard USB and HDMI cords? Apple phones aren't 30%+ less resolution than comparable flagships? They don't have 1/3 the RAM? The 2015 MacBook Pro doesn't use a GPU from 2012 and a last-generation Haswell while costing $2000-$2500?

Whew! That's all really good to hear. Glad Apple has turned themselves around in the last month when I wasn't paying attention.
 

subrock

Member
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.)
Settings > iTunes & App Store > Apple ID > Subscriptions > set auto renew to off
 

mrmisterwaa

Neo Member
Apple uses industry-standard USB and HDMI cords? Apple phones aren't 30%+ less resolution than comparable flagships? They don't have 1/3 the RAM? The 2015 MacBook Pro doesn't use a GPU from 2012 and a last-generation Haswell while costing $2000-$2500?

Whew! That's all really good to hear. Glad Apple has turned themselves around in the last month when I wasn't paying attention.

Stop making sense. We don't want to hear it!

We should pay definitely pay a premium for "perceived" quality and ease of use.
 

ArtHands

Thinks buying more servers can fix a bad patch
I feel like a 30% cut is way too much, that's almost lawyer level cut. I feel like companies like Valve and Apple should only be taking in 5% to 6% cut in any store purchase. Kind of crazy if you think about it.

I always thought this is the industry standard. What's the cut on Google Play?
 

mrmisterwaa

Neo Member
I always thought this is the industry standard. What's the cut on Google Play?

The help-section and web searches show that you pay a 30% transaction fee when it goes through them directly.

They don't restrict you from using alternate payment methods (compared to Apple).

Would you rather watch your favorite movie at 480p or view footage of paint drying at 4K 60fps? Quality is more than just being super high tech.

Quality is definitely more than being super high tech. Apple tend to market that their products are of higher quality than their competitors. (in terms of software or hardware)

When it realistically isn't.
 
Quality is definitely more than being super high tech. Apple tend to market that their products are of higher quality than their competitors. (in terms of software or hardware)

When it realistically isn't.

You don't like it, which is fine. It's easy to find flaws in things you don't like. And even if it's just a placebo, that quality is still there.

I happen to not like Android's brand of UI and their delegating all of the fungible choices to the user, but that's my taste. I don't go around parading that Android is shit just because I don't like it; I'm able to recognize that it's just not my thing, and that's okay.
 

werks

Banned
You didn't think this through did you?

You got me, one single streaming service allows IAP at market rate. Thats a real win for IOS consumers since the competing ecosystem allows every streaming service (music and video) and ebooks store to compete at market price.

If it doesn't bother you that there is no competition for apple music at the $10 rate on IOS then I don't know what to tell you.

I always thought this is the industry standard. What's the cut on Google Play?

Google allow alternative methods of payment in app. Spotify will take your CC in app or use paypal. The end result is a $10 sub for Android users.

Outrageous!

It's outrageous that google allows alternate in app purchases that doesn't increase the cost for consumers?

What happened with apple'e ebook collusion is outrageous. Colluded with all the publishers to change to an agency model that gave Amazon 30% revenue, then demanded amazon remove all method of buying books in app (which just involved clicking the buy button that charged your existing amazon account), then demanded all 30% of amazon's revenue for IAP. The net result for IOS consumers was that amazon removed anyway to buy books on IOS. iBook just got rid of their biggest competitor, and ebook prices rose until the DOJ intervened. Thats apple for you.
 

Dalek

Member
I use PayPal for iTunes. I can also use my credit card. What is this other payment that Google allows but Apple doesn't? I'm curious.

https://support.apple.com/en-us/HT202631

The available payment methods vary by country. You can typically use these methods:
Credit cards
Content codes
Store credit, including iTunes Store Gift Cards, Gift Certificates, and Allowances
ClickandBuy
PayEase
PayPal
UnionPay (requires SMS PIN for setup)
 

werks

Banned
I use PayPal for iTunes. I can also use my credit card. What is this other payment that Google allows but Apple doesn't? I'm curious.

https://support.apple.com/en-us/HT202631

The available payment methods vary by country. You can typically use these methods:
Credit cards
Content codes
Store credit, including iTunes Store Gift Cards, Gift Certificates, and Allowances
ClickandBuy
PayEase
PayPal
UnionPay (requires SMS PIN for setup)

Google allows you to not use their payment system at all. You can pay for spotify in app with paypal or any credit card. This means no 30% cut and spotify costs $10 on android. They also allow you to link to your website or create an account in app for payment. End result is google allows app devs the flexibility to use google's payment system with 30% fee (which almost every normal app uses) or use a separate payment system (which most subscription services use) to avoid the fee.

IE I use my amazon account to buy books in app with kindle.

https://gigaom.com/2013/08/23/in-eb...e-is-lying-about-how-in-app-purchasing-works/

The federal government outlined a revised punishment for Apple in the ebook pricing case Friday. It argued that Apple changed its in-app purchase rules to retaliate against Amazon. And it wants to make big changes in the way Apple does business in the iTunes Store...

In its revised remedy, the DOJ delves deeply into its criticism of Apple’s in-app purchasing policy, which it now claims Apple changed in 2011 “to retaliate against Amazon for competitive conduct that Apple disapproved of.” As background, in 2011, Apple changed in-app purchase rules to require that any content sold through apps must also be sold through the iTunes Store, and forbid publishers and retailers from sending users to websites outside their apps to make purchases. As a result, Amazon removed the Kindle Store from its app and retailers like Barnes & Noble and Kobo followed suit.

These rules applied to all types of digital content — including magazines and newspapers — not just ebooks. But, the DOJ argues, they were primarily put into place “to make it more difficult for consumers using Apple devices to compare ebook prices among different retailers, and for consumers to purchase ebooks from other retailers on Apple’s devices.”
http://qz.com/118293/the-steve-jobs-email-exchange-that-perfectly-captures-apples-strategy/
In late 2010, Android phones were just overtaking the iPhone in US market share, driven largely by Americans buying cheaper smartphones running Google’s operating system. Apple still maintained a revenue advantage, but privately, executives at the company were fretting about the notion “that it is easy to switch from iPhone to Android.”

That’s the upshot of a new, revealing email exchange, first noticed by GigaOm, which was released today by the US government in its lawsuit against Apple over e-book pricing. Like other emails that have emerged in the case, these provide a rare window into the internal strategy of the world’s largest technology company.

On the evening of November 22, 2010, senior vice president Phil Schiller was watching television and dashed off this note to Steve Jobs (then the CEO), Eddy Cue (then the executive in charge of iTunes), and Greg Joswiak (vice president of marketing):

I just watched a new Amazon Kindle app ad on TV.

It starts with a woman using an iPhone and buying and reading books with the Kindle app. The woman then switches to an Android phone and still can read all her books.

While the primary message is that there are Kindle apps on lots of mobile devices, the secondary message that can’t be missed is that it is easy to switch from iPhone to Android.

Not fun to watch.


This is the ad—”What if you switch?“—Schiller was probably referring to:

http://www.youtube.com/watch?v=K_GPTR7TGu4

As Apple diversifies the types of electronics its sells, its strategy has increasingly come into focus: Provide hardware, software, and media that works best when all of your devices are made by Apple. In other words, lock people in. Movies purchased from iTunes, for instance, work seamlessly on your iPhone, iPad, and Mac, but don’t try to playing them on devices made by competitors. (You can, but it’s not worth the trouble.)

In the case of this Amazon ad that had Schiller so alarmed, the point is that e-books purchased from Apple’s iBookstore, which had launched earlier that year along with the iPad, only work on Apple devices. But if you buy your e-books from Amazon, you can read them on any device for which there’s a Kindle app.

Jobs responded to Schiller’s email later that night:

What do you recommend we do?

The first step might be to say they must use our payment system for everything, including books (triggered by the newspapers and magazines). If they want to compare us to Android, let’s force them to use our far superior payment system. Thoughts?

Steve

Sent from my iPhone


What Apple ended up doing, the following year, is insisting that Amazon and similar retailers give Apple a 30% cut of e-book purchases made through their apps. Amazon responded by removing in-app purchases altogether, meaning people could read—but no longer purchase—books in the Kindle app for iPads and iPhones. That remains the case today.

Apple’s “you only need us” strategy has been enormously successful, thanks to the simplicity of its products, which encourage people to keep their media within Apple’s ecosystem. But with even more competition for smartphones and tablets, the question posed by Amazon’s ad—”What if you switch?”—likely remains just as scary to Apple today.


http://www.digitalbookworld.com/201...f-ebook-best-sellers-on-a-two-month-tailspin/

The average price of a top-25 ebook best-seller has plummeted in the past several months, dropping from a high of $11.37 in last Oct. to $8.23 this week (see chart below).

Since gaining control of the power to discount titles from some of the largest publishers, Amazon, Barnes & Noble and others have been dropping the prices of best-selling titles from $14.99 and $12.99 to points much lower — sometimes to below $5.

http://www.theverge.com/2015/5/4/8540935/apple-labels-spotify-streaming

The Department of Justice is looking closely into Apple’s business practices in relation to its upcoming music streaming service, according to multiple sources. The Verge has learned that Apple has been pushing major music labels to force streaming services like Spotify to abandon their free tiers, which will dramatically reduce the competition for Apple’s upcoming offering. DOJ officials have already interviewed high-ranking music industry executives about Apple’s business habits.

Apple has been using its considerable power in the music industry to stop the music labels from renewing Spotify’s license to stream music through its free tier. Spotify currently has 60 million listeners, but only 15 million of them are paid users. Getting the music labels to kill the freemium tiers from Spotify and others could put Apple in prime position to grab a large swath of new users when it launches its own streaming service, which is widely expected to feature a considerable amount of exclusive content. "All the way up to Tim Cook, these guys are cutthroat," one music industry source said.

Sources also indicated that Apple offered to pay YouTube’s music licensing fee to Universal Music Group if the label stopped allowing its songs on YouTube. Apple is seemingly trying to clear a path before its streaming service launches, which is expected to debut at WWDC in June. If Apple convinces the labels to stop licensing freemium services from Spotify and YouTube, it could take out a significant portion of business from its two largest music competitors.

Apple has an antitrust monitor on its campus, courtesy of the DOJ after Apple was found guilty in an ebook antitrust case last year (Apple is appealing the decision), but it's not clear if that monitor is involved in this latest situation. The DOJ isn’t the only entity looking into Apple’s dealings with the music industry, either. According to the New York Post, Apple is being probed by the European Union’s Competition Commission to find out if the company is working with the labels to rid the industry of freemium services.

Apple declined to comment.

Good guy Apple.
 
D

Deleted member 12837

Unconfirmed Member
If the extra $3 or whatever it shakes out to be really bothers you that much, does it really kill you to take the extra 30 seconds to subscribe or buy via the web instead of through the iOS app?

Also when did Apple stop using HDMI and USB? This is news to me.
 
Also when did Apple stop using HDMI and USB? This is news to me.

You've needed a DisplayPort <-> HDMI adapter for several years now on most models. They still use USB, but it has the much faster, reversible Lighting connector on the other side for iPhones and iPads instead of micro USB.
 
D

Deleted member 12837

Unconfirmed Member
You've needed a DisplayPort <-> HDMI adapter for several years now on most models. They still use USB, but it has the much faster, reversible Lighting connector on the other side for iPhones and iPads instead of micro USB.

On most models? Isn't it just the Air and the brand new MacBook that are missing it now? MBP, Mac Pro, Mac Mini, Apple TV all have it. Even the iMac (not sure why).

I'm guessing we'll see USB-C for the phones soon enough. I thought he was referring to the computer lines with his comment, though.

Edit: oops, was wrong about the iMac (but not surprised given the computer itself is a screen)
 
seems like business as usual.

music subscription services pay out like 70% of the sub rev to the publishers.

some upcharge the 30% on Apple devices because they aren't allowed to use their own IAP system or link consumers to it in the app or app listing.

Apple launches their own competing service and now the choices are run red by matching the price or point out how to get a competitive price elsewhere.

the price they set didn't matter until Apple undercut them by not having to pay the same Apple fees.

what else could they do?
 
On most models? Isn't it just the Air and the brand new MacBook that are missing it now? MBP, Mac Pro, Mac Mini, Apple TV all have it. Even the iMac (not sure why).

I'm guessing we'll see USB-C for the phones soon enough. I thought he was referring to the computer lines with his comment, though.

That's not been my experience handling the Macs around the office, but admittedly I haven't looked at Apple's catalog recently. You're probably right.
 
If the extra $3 or whatever it shakes out to be really bothers you that much, does it really kill you to take the extra 30 seconds to subscribe or buy via the web instead of through the iOS app?

Also when did Apple stop using HDMI and USB? This is news to me.

Well done for completely missing the point.
 

Alo0oy

Banned
You can't buy anything in the Playstation app for the same reason (in this case the publisher loses 60% of its revenue, 30% to Apple/Google & 30% to Sony), the PS app directs you to the Web page when you try to make a purchase. It's very inconvenient & archaic.
 

Kinsella

Banned
LOL at all the "Don't worry, people won't be buying Spotify in 3 months" posts. After using the disaster that is Apple Music on iTunes, I stopped using the free service and went right back to paying Spotify 4.99 a month. Happily.

As for paying via iTunes, I do with HBO because it's cheaper to buy a bunch of iTunes gift cards for 20 percent off and then pay using that credit.
 
Is it just me or this thread is tripping balls in mobile?

What I see is:

"*rigin*lly P*s*ed by D*lek <* href="sh*w*hre*d.php?p=171355069#p*s*171355069" rel="n*f*ll*w">

I use P*yP*l f*r i*unes. I c*n *ls* use my credi* c*rd. Wh** is *his **her p*ymen* *h** G**gle *ll*ws bu* *pple d*esn'*? I'm curi*us.

<* href="h**ps://supp*r*.*pple.c*m/en-us/H*202631" **rge*="_bl*nk">h**ps://supp*r*.*pple.c*m/en-us/H*202631

*he *v*il*ble p*ymen* me*h*ds v*ry by c*un*ry. Y*u c*n *ypic*lly use *hese me*h*ds:
Credi* c*rds
C*n*en* c*des
S**re credi*, including i*unes S**re Gif* C*rds, Gif* Cer*ific**es, *nd *ll*w*nces
Click*ndBuy
P*yE*se
P*yP*l
Uni*nP*y (requires SMS PIN f*r se*up)

G**gle *ll*ws y*u ** n** use *heir p*ymen* sys*em ** *ll. Y*u c*n p*y f*r sp**ify in *pp wi*h p*yp*l *r *ny credi* c*rd. *his me*ns n* 30% cu* *nd sp**ify c*s*s $10 *n *ndr*id. *hey *ls* *ll*w y*u ** link ** y*ur websi*e *r cre**e *n *cc*un* in *pp f*r p*ymen*. End resul* is g**gle *ll*ws *pp devs *he flexibili*y ** use g**gle's p*ymen* sys*em wi*h 30% fee (which *lm*s* every n*rm*l *pp uses) *r use * sep*r**e p*ymen* sys*em (which m*s* subscrip*i*n services use) ** *v*id *he fee.

IE I use my *m*z*n *cc*un* ** buy b**ks in *pp wi*h kindle.

<* href="h**ps://gig**m.c*m/2013/08/23/in-eb**k-c*se-d*j-cl*ims-*pple-is-lying-*b*u*-h*w-in-*pp-purch*sing-w*rks/" **rge*="_bl*nk">h**ps://gig**m.c*m/2013/08/23/in-eb*...ch*sing-w*rks/

*he feder*l g*vernmen* *u*lined * revised punishmen* f*r *pple in *he eb**k pricing c*se Frid*y. I* *rgued *h** *pple ch*nged i*s in-*pp purch*se rules ** re**li**e *g*ins* *m*z*n. *nd i* w*n*s ** m*ke big ch*nges in *he w*y *pple d*es business in *he i*unes S**re..."

--------------

Clearly a mod accidently banned letters instead of a full word.
 
I always considered buying Apple is like buying a luxury car versus a sports car or versus a custom car. The sort of person to buy a luxury car is looking for fast, but not necessarily cares about being fastest; that sort of person also wants a whole lot of innovations and luxuries on top of decent speed and will pay a premium to get that sort of package.
 
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