Apple fires back at Spotify's app store complaint

Jamie McKane

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Apple fires back at Spotify's app store complaint

Apple Inc. fired back at Spotify Technology SA’s antitrust complaint, saying the music streaming giant wants all the benefits of its app store without contributing to the marketplace.

The iPhone maker said the App Store contributed to Spotify becoming the business it is today, a public company that generates over a billion dollars of revenue per quarter, according to a statement on Friday.

[Bloomberg]
 

Bryn

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30% is an absurd figure for any platform to take from subscription revenue. Apple isn't the only guilty marketplace, but they should be forced to change the rate if they won't do so voluntarily.
 

mattrudlles

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30% is an absurd figure for any platform to take from subscription revenue. Apple isn't the only guilty marketplace, but they should be forced to change the rate if they won't do so voluntarily.
Why? Spotify wouldn't even be a, erm spot?, without the Apple platform.

Marketing isn't cheap, at least apple provides marketing space, and other incentives as they point out. Essentially its free marketing if you don't have a paid app user.
 

Bryn

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Why? Spotify wouldn't even be a, erm spot?, without the Apple platform.
I'm not talking about Spotify. In general, it's not an acceptable slice of the pie.

Also, Android is on over 80% of smartphones. I doubt Spotify owes everything to Apple, especially when Apple pushes its own music streaming platform pretty hard.
 

mattrudlles

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I'm not talking about Spotify. In general, it's not an acceptable slice of the pie.

Also, Android is on over 80% of smartphones. I doubt Spotify owes everything to Apple, especially when Apple pushes its own music streaming platform pretty hard.
I think it is the price you pay to be on the platform that generates money for you, and indeed allowed you to be successful.

Perhaps Android contributed as much, but from what I have heard IOS is the best. Its the reason most developers publish on the App Store first. By best, I mean the store where users are most willing to spend money on a paid for app.
 

Bryn

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I think it is the price you pay to be on the platform that generates money for you, and indeed allowed you to be successful.

Perhaps Android contributed as much, but from what I have heard IOS is the best. Its the reason most developers publish on the App Store first. By best, I mean the store where users are most willing to spend money on a paid for app.
It would make no sense if iOS didn't have a higher spend per user considering the cost of the devices. There are millions of Android users at the bottom end of the mobile heap. But that doesn't change how vastly outnumbered iPhone customers are compared to Android ones. I think the days of apps being iOS-first are gone. Usually I see iOS lagging heavily behind Android in quality, like with WhatsApp and Telegram. It took a real effort recently from Telegram to get its iOS version up to speed.

And this also doesn't address that the Music app on iOS will very heavily get in the way of Spotify signing up iOS users. Or that 30% is not a justifiable figure no matter how you'd like to configure this conversation. Apple is not your business partner as a developer and didn't bear any risk in you trying to sell stuff. For them to take 30% of every month's subscriptions that you earn is simply crazy, and it's why more and more services don't allow you to sign up through the App Store. You just get a message to log in with your account, or to create an account at xyz.com if you don't have one.

And again, it's not just Apple. Play Store has the same rates. Steam needs to be taken down a few pegs as well. It should be 15% for the first year at the very least for subscriptions, preferably dropping to 10% from the second year.
 

Daruk

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30% is an absurd figure for any platform to take from subscription revenue. Apple isn't the only guilty marketplace, but they should be forced to change the rate if they won't do so voluntarily.
Came here to say this. Especially when you offer a competing product.
 
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