![]() ![]() In fact, it wasn’t until October 2019 that Apple allowed Spotify and other third party music apps to integrate Siri into their user experience (a massive disadvantage for Spotify users). Spotify has claimed for years that Apple has previously blocked their iOS upgrades or ability to send emails to Apple users. (2) Apple is the creator of iOS and the App StoreĪs the owner of the App Store and iOS, Apple maintains a competitive advantage in controlling Spotify’s ability to submit updates to their app, communicate with customers, and provide excellent user experiences. Apple later rebutted against this point claiming that Spotify only pays a 15% “app tax” under it’s revenue sharing model, which only affected about 0.5% of their 100 million subscribers before Spotify started using their own payment system outside of the app. This makes it extremely difficult for Spotify to sustain competitive pricing. How Apple plays an unfair game (1) The “30% Apple Tax”Īccording to Spotify’s “Time to play fair” video, they claimed that they have to pay 30% of all Spotify Premium subscription fees to Apple as a result of being forced to use their payment system for in-app upgrades. Although the two apps have very similar features, Spotify prevails in its ability to work cross-functionally with other devices and subscription packages. Comparatively, Apple Music has ~60 million paid subscribers (last updated in June 2019). ![]() 2019), 124 million paid subscribers, and paid user base growing at over 30% year-over-year, we have to wonder how they’ve managed to differentiate themselves as the leading music streaming service in the world. With Spotify’s 248 million active monthly users ( Oct.
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