New Delhi: Spotify has made a groundbreaking decision to terminate support for Apple in-app payments for its Premium subscribers. This move signifies that Spotify users who previously paid for their subscriptions through the App Store will now need to switch to alternative payment methods, such as credit cards or PayPal.
For years, Spotify has been a vocal critic of Apple's App Store policies, asserting that the 30% commission levied on in-app purchases is excessively high. In 2019, the music streaming giant filed a complaint with the European Commission, alleging anti-competitive practices on Apple's part.
By discontinuing support for Apple in-app payments, Spotify marks a significant turning point. It becomes the first major streaming service to take such action, potentially influencing the industry.
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Spotify's decision to cease Apple in-app payments stems from its commitment to providing subscribers with increased choice and control over their payment methods. The company also believes that Apple's 30% commission is unjustifiably steep.
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Impact on Spotify: The change may result in higher subscription fees for users who opt to pay through the App Store. Some subscribers may also choose to cancel their subscriptions altogether. Revenue implications for Apple: Apple stands to lose revenue from Spotify subscriptions. However, it may benefit if the decision prompts more users to subscribe to Spotify directly via the company's website. Industry-wide influence: Spotify's action sets a precedent for other streaming services, potentially triggering a domino effect. This could lead to decreased revenue for Apple, while fostering greater competition and potentially lower prices for consumers.Also read: Meta's Threads Surpasses 10 Million Users, Mark Zuckerberg Announces
Spotify's move is undoubtedly a bold and noteworthy step, expected to have a significant impact on the streaming industry. Observers eagerly anticipate Apple's response and are keen to assess the long-term effects on Spotify's business. The situation warrants close attention as it continues to unfold, shaping the dynamics of the streaming landscape.