Apple blocks Spotify updates as it compete against Apple music streaming service

[GoodBytes]

Spotify is claiming that Apple is blocking them from updating their software on the iOS platform, because their service now does competition to Apple's music streaming service.

The reason for this Apple says, is that subscription services needs to go through Apple store, so that the company get a cut (30%).

Apple has introduced a lower cut fee of 15% instead of 30%, but only applies to yearly subscriptions in which the user doesn't cancel in between, else the company charges a 30% fee on the app developer/service provider.

 

This has already lead Spotify to charge more for Apple users if they subscribe via the iOS platform instead of the web. Resulting in $13 US per month instead of paying the usual $10 US per month. Despite offering this Apple Store option, Apple forbids external links or any other way to by-pass the store.

Quote

At issue is Apple's share of sales and subscriptions that go through software available on the iOS App Store. For years, Apple has taken a 30 percent cut of all App Store sales, encompassing paid downloads, in-app purchases, and ongoing subscriptions.
 

In a move that could help the likes of Spotify and others, Apple announced earlier this month that it will take a smaller 15 percent cut of ongoing subscriptions through App Store downloads. However, Apple's 30 percent share is only reduced to 15 percent if a customer maintains their subscription for over a year.

 

Apple's policies have led companies like Spotify to charge more to customers who subscribe through their official iOS app. Spotify's premium subscription tier costs $10 if a user registers directly through the web, but transactions through its iOS app are charged at $13 per month. Apple also forbids linking to external stores to bypass App Store fees.

 

While Spotify's letter apparently did not specifically say what changes have been made in the rejected version of its iOS app, it does note that the proposed update was turned down due to "business model rules." Spotify was also informed that they would be required to use Apple's iTunes-based billing system to sell subscriptions through its iOS app.

 

Source: http://appleinsider.com/articles/16/06/30/spotify-says-apple-rejected-app-update-over-app-store-policies-causing-grave-harm-to-service

 

This is a very tricky situation. Apple wants a cut of the service, but Spotify is now less competitive over Apple streaming service due to the increase service cost which the company can't absorb.

While it would normally start making app developer flee the platform, Apple stronghold prevents this.

 

What do you think? Is Apple in the right? Or Spotify?

[mpsparrow]

Another reason to hate Apple...

[Kobathor]

Apple is salty that their music service doesn't have as many subscribers as Spotify. They charge developers too much to keep the prices consistent across all platforms. Now, Spotify is claiming that Apple is blocking updates because Spotify isn't paying them enough.

 

Apple is being so greedy that it is hindering the development of successful applications on their own platform. In my opinion, Apple needs to fuck off. It's not their service that's paying them 30% of all subscriptions.

[OptimisticRealist]

They are both greedy...

 

A solution is to lower the redic. Spotify fee of $10 monthly to $5 and to make it buy yearly. This would make it so Apple get ls the 15% too.

 

Everybody wins.

[AHaskin14]

Wow....That's pretty awful.

[Guest]

That apple smells rotten...

[DevilishBooster]

Well, one could argue that it is Apple's devices and OS, so they can say apps may or may not be run on them. But on the other hand you can argue that once the end user has paid Apple for the right to use their products/software that they should be able to use any service they want on it. I can see it going either way. 

 

Personally, I think this is a really stupid move on Apple's part. Restricting other companies' services on Apple devices does absolutely nothing to facilitate healthy competition in the marketplace. I just think they're scared that they might loose the music streaming service market if they don't actually put some effort into giving their customers what they (the customers) want with Apple's music streaming service.

[DevilishBooster]

1 minute ago, Dutch-stoner said:

That apple smells rotten...

[Guest]

Google is a search engine, mostly used on a windows platform. (I think...) Microsoft has their own (crappy) search engine. There would be WW3 if Microsoft would block g00gle...

[AresKrieger]

Apple is just salty, and they already have my contempt so Team Spotify for me, not that I pay for a music service.

[ZestyJalapeno]

Fuck you, Apple. I'm off to get an LG.

[derick90]

But but but they have more friends than me!!! 

 

#salt

[ThreePinkApples]

This is wrong on so many levels. Spotify doesn't sell a service through the App store, it just distributes an app that can be used with their own service that they sell. 
If this is how they think, they should this for all kinds of apps that have external subscription options. Example: Dropbox, Google Drive, Cisco Spark, Evernote, Audible, TeamViewer and many more
(Disclaimer: Haven't had an iPhone since 2012, so I'm not aware if any of these apps costs money on the App store, but I exepct all of them to be free)

[Knaj]

Good freaking god apple.

 

[Misanthrope]

48 minutes ago, Kobathor said:

Apple is salty that their music service doesn't have as many subscribers as Spotify. They charge developers too much to keep the prices consistent across all platforms. Now, Spotify is claiming that Apple is blocking updates because Spotify isn't paying them enough.

 

Apple is being so greedy that it is hindering the development of successful applications on their own platform. In my opinion, Apple needs to fuck off. It's not their service that's paying them 30% of all subscriptions.

How do you get the billions that still consume their products to move elswhere and tell Apple to fuck off though? Sadly it is a defacto status symbol for many, many people enough to make Apple the biggest tech Company in the world.

 

Many libertarians will vehemently disagree with me but key services like app stores and digital distribution outlet (Yes, Steam included) should be heavily regulated to enforce fair competition, none of this "we decide the rules cause we big yo!" crap.

[BuckGup]

Hey apple your music service sucks and that is why people don't like it. Change it so they like it and don't go crying in the corner about it. You a big boy now not everything is successful. 

[Kobathor]

5 minutes ago, Misanthrope said:

How do you get the billions that still consume their products to move elswhere and tell Apple to fuck off though? Sadly it is a defacto status symbol for many, many people enough to make Apple the biggest tech Company in the world.

 

Many libertarians will vehemently disagree with me but key services like app stores and digital distribution outlet (Yes, Steam included) should be heavily regulated to enforce fair competition, none of this "we decide the rules cause we big yo!" crap.

They're not "key services." Nobody will die because they can't buy an app. This is capitalism: if people don't like their store, it will not thrive as it has for years, so they'll need to reform it or consumers will force them to close. We have anti-trust laws to stop monopolies from happening, but the government shouldn't butt in just because Apple is using unfair tactics. Apple probably isn't breaking any laws, it's their platform.

[Qwerty2323]

American way...

Money and monopoly

[Misanthrope]

2 minutes ago, Kobathor said:

They're not "key services." Nobody will die because they can't buy an app. This is capitalism: if people don't like their store, it will not thrive as it has for years, so they'll need to reform it or consumers will force them to close. We have anti-trust laws to stop monopolies from happening, but the government shouldn't butt in just because Apple is using unfair tactics. Apple probably isn't breaking any laws, it's their platform.

If no other store can compete fairly it basically controls telecommunication for a great number of people. I consider that key. Saying "this is Capitalism!" doesn't really helps: we have tons of anti trust laws and regulations that prevent anti competitive behavior. Capitalism should allow everyone an equal chance, yet if you leave everything up to the market companies will organically grow into monopolies and bigger and bigger consolidation which in turns removes capitalism and the free market from existence.

 

Saying "It's their platform" doesn't cut it. We need to clearly define what is a platform which is the phone itself not additional fucking services that are built into the phone for no good reason at all.

[Kobathor]

18 minutes ago, Misanthrope said:

If no other store can compete fairly it basically controls telecommunication for a great number of people. I consider that key. Saying "this is Capitalism!" doesn't really helps: we have tons of anti trust laws and regulations that prevent anti competitive behavior. Capitalism should allow everyone an equal chance, yet if you leave everything up to the market companies will organically grow into monopolies and bigger and bigger consolidation which in turns removes capitalism and the free market from existence.

 

Saying "It's their platform" doesn't cut it. We need to clearly define what is a platform which is the phone itself not additional fucking services that are built into the phone for no good reason at all.

iPhones do not have as much market share as Android devices or other phones. Around 17% is the most recent figure, and they're on a downward trend lately. They are not a "key service" and they do not "basically control telecommunication." ISP's and phone service providers control telecommunication, and last I checked, Apple is neither of those. It's quite easy to stop using Apple services and switch to other ones, except for things like the iCloud (which is IMO a crappy service anyways.)

 

They sell physical devices that run proprietary software. They operate their own App Store and sell music on iTunes, and most recently they stream music with Apple Music. They fairly compete with Android and its services, like the Google Play Store and Google Play Music. Same thing with Spotify and services similar to it. If they choose not to host Spotify on their platform, that's their decision. There's money to be made if they choose to host Spotify with less than a 30% cut, which is already a lot of money.

 

I think that, if Spotify leaves the App Store, more Spotify customers would stop using their iPhones rather than switch to Apple Music. So, in the end, Apple could be treating them unfairly (I don't think any of this has been investigated, so we can't say if they are or not.) Until we know for sure, all we know is that Spotify already doesn't like Apple and how they micromanage the apps on their store, and that Apple supposedly did "wrong."

 

If Apple doesn't capitalize on the fact that Spotify users pay them money for a service they don't operate, then they'll lose that income.

[SurvivorNVL]

Well, if people don't like this, they can move to another platform.  Apple's ecosystem, their rules.

[Prysin]

1 hour ago, GoodBytes said:

Spotify is claiming that Apple is blocking them from updating their software on the iOS platform, because their service now does competition to Apple's music streaming service.

The reason for this Apple says, is that subscription services needs to go through Apple store, so that the company get a cut (30%).

Apple has introduced a lower cut fee of 15% instead of 30%, but only applies to yearly subscriptions in which the user doesn't cancel in between, else the company charges a 30% fee on the app developer/service provider.

 

This has already lead Spotify to charge more for Apple users if they subscribe via the iOS platform instead of the web. Resulting in $13 US per month instead of paying the usual $10 US per month. Despite offering this Apple Store option, Apple forbids external links or any other way to by-pass the store.

 

Source: http://appleinsider.com/articles/16/06/30/spotify-says-apple-rejected-app-update-over-app-store-policies-causing-grave-harm-to-service

 

This is a very tricky situation. Apple wants a cut of the service, but Spotify is now less competitive over Apple streaming service due to the increase service cost which the company can't absorb.

While it would normally start making app developer flee the platform, Apple stronghold prevents this.

 

What do you think? Is Apple in the right? Or Spotify?

i smell a Anti Trust lawsuit coming.

[KuJoe]

8 minutes ago, SurvivorNVL said:

Well, if people don't like this, they can move to another platform.  Apple's ecosystem, their rules.

If Apple hadn't let Spotify offer their app on their platform then yes, they can do whatever they want but by allowing a product and not allowing developers to update their product they're leaving their (Apple's) users at risk by not letting the developer patch security exploits or bugs that might affect the usage of their device. If they pulled the app completely then I would understand, but by leaving the app there without future security patches is not only idiotic but might open them up to potential legal problems in the future if a critical exploit is discovered and Apple does not allow Spotify to patch it.

[Master Disaster]

That's the epitome of Apples entire business model, closed source and hugely anti competitive, and they get away with this shit time & time again. If it was anyone else they'd already be in court. 

 

Still I fully expect the Apple brigade to come riding in on their white horses wielding their Apple Shields and taking up defensive duties post haste. 

[Belgarathian]

So Spotify is breaking Apple's TOS, and Apple is then blocking their App. 

 

Sounds legit to me, don't know why this is news.