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Addressing Spotify’s Claims

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Re: Addressing Spotify’s Claims

#31
post #3

Underneath the rhetoric, Spotify’s aim is to make more money off others’ work. Wow. It is astonishing to read this from a company being widely accused of an unfair 30% tax. Correction: the revenue share is 15%, it was originally 30%

To be fair Apple capitulated and reduced it to 15% for after the first year, and leave a lot of money on the table from freemium/ad-supported apps. I'm honestly not sure what the big deal is. You can subscribe outside of the App store (by not using in-app payments) and not pay that extra $$, and Apple doesn't get that extra $$.

What you are missing is that Apple is selling their own music streaming subscription for 30% less while making it impossible for Spotify to advertise their subscription in the app.

Re: Addressing Spotify’s Claims

#33

> Underneath the rhetoric, Spotify’s aim is to make more money off others’ work. And it’s not just the App Store that they’re trying to squeeze — it’s also artists, musicians and songwriters. Uh, I seem to recall Apple being forced to reverse some brazenly greedy policies for their music service when a high-profile artist called them out and withheld content in protest. For Apple to characterize itself as a champion…

> Spotify’s aim is to make more money off others’ work Moreover, that's the pot calling the kettle black. That's the app store in a nutshell -- Apple supplies the marketplace, but is also making a substantial chunk of money off of others’ work.

Spotify is essentially a middleman. Apple is much more, they’re building the entire platform.

Re: Addressing Spotify’s Claims

#34

> What Spotify is demanding is something very different. After using the App Store for years to dramatically grow their business, Spotify seeks to keep all the benefits of the App Store ecosystem — including the substantial revenue that they draw from the App Store’s customers — without making any contributions to that marketplace. Please Apple, pay all the open source projects that you use, a fair share of the reven…

I could not agree more.

Re: Addressing Spotify’s Claims

#35

Earlier quoted context omitted.

I think the % for processing/platform is justifiable and hard to argue against setting that % for them. The most likely outcome is that they will either remove the restriction from advertising alternative payment methods on signup, and in exchange Apple can do what it wants with in-app payments.

I agree that the best case is that Apple sets the price it does business at, but that there are reasonable ways for the app to use a different payment provider, even if just by linking to the web. This keeps Apple's price in check naturally... As they'll need to keep the price competitive enough that the convenience of using their service is worth it.

I can also see the argument that for users that discover an app through the App store, they must pay the platform/acquisition costs. But I agree a lifetime 15% is unfair.

Best case scenario is

1) Apple switches their platform monetization to a more direct model where you pay to advertise your app in the App store. This will get tricky because their "Top apps" list still serve as advertising but you can't just remove an app from there because it refuses to pay.

2) Apple removes the restrictions against advertising alternative payment/subscription methods

Re: Addressing Spotify’s Claims

#36
post #22
post #3

Underneath the rhetoric, Spotify’s aim is to make more money off others’ work. Wow. It is astonishing to read this from a company being widely accused of an unfair 30% tax. Correction: the revenue share is 15%, it was originally 30%

This entire letter sounded condescending and immature, to be honest. It reminded me of the cheesy Mac vs. PC days from Apple.

Well, those ads were honestly better. They were localized both in their scope and what they claimed to do. Nowadays, every tech company is changing the world, and there is much hullabaloo over everything under the sun when it's just shitty software at the end of the day. Take the opening sentence: "We believe that technology achieves its true potential when we infuse it with human creativity and ingenuity". Who gets paid to write this drivel ?

Re: Addressing Spotify’s Claims

#37
post #33

Earlier quoted context omitted.

> Spotify’s aim is to make more money off others’ work Moreover, that's the pot calling the kettle black. That's the app store in a nutshell -- Apple supplies the marketplace, but is also making a substantial chunk of money off of others’ work.

Spotify is essentially a middleman. Apple is much more, they’re building the entire platform.

Spotify build distribution, recommendation infrastructure,and more. They are far more than a warehouse middleman which adds no additional value beyond providing a retail outlet.

Re: Addressing Spotify’s Claims

#38
What an immature letter, did not really expect a response like that.

It also fails to address the most important points from Spotify, which I thought were: you have no choice but to use the apple store, and promoting your own payment is not allowed. Fix one of those and most people would be happy.

Re: Addressing Spotify’s Claims

#39
post #27
post #24

Can anyone explain why Wechat, the app that can do everything, streaming paid music, read paid ebooks, order food and goods, play games, are allowed to charge directly without IAP? Heck wechat even had its own mini app store.

Because apple needs wechat and not the other way around. WeChat being an essential feature for any Chinese customer.

so the AppStore policy is selective?

Re: Addressing Spotify’s Claims

#40
post #24

Can anyone explain why Wechat, the app that can do everything, streaming paid music, read paid ebooks, order food and goods, play games, are allowed to charge directly without IAP? Heck wechat even had its own mini app store.

I think part of it was that Apple was taking 30% from donations, tips, and e-cash gifts that wechat itself wasn't profiting off of, and I don't think those were even powered by in-app purchases.

Also, Apple itself accepts wechat as a payments method, so it's a payment processor.

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