Apple and Spotify are officially AT WAR.Jun 08, 2021
this may seem really different, but Spotify and Apple have actually been fighting each other for the last ten years, but it only got very real. I mean the things that these two companies say to each other is brutal it's like a really serious version of a rap battle so what's going on as well with this video is sponsored by cyberghost VPN 2008 is where it all started when Apple introduced the app store and
spotifybecame a thing the way it worked was you could download the app for free and then if you would like to tip the premium version for 10 euros a month with an in app purchase and it seems that everyone is a winner here Spotify can put their app on the App Store to get exposure to all these new iPhone users and then Apple gets this amazing app that makes iPhones more desirable.
The problems started when Apple decided to introduce a 30% fee for this in-app purchase, which would mean that every time someone in the iOS Spotify app wanted to upgrade to premium about $3 a month went to Apple and that's just the start so understandably Spotify the initial reaction was something like there's no way we're not paying 30% if we pay 30% we'll have no choice but to raise our prices and we want to keep them low for our fans yeah they call their customers who are fans they pay, which is already a bit strange, there was a bit of back and forth, but eventually Spotify agreed and Apple was now taking this cut.
Spotify raised its price to 13 euros a month and their customers weren't happy but it gets worse Apple Music is at the center of all this and it's a service very similar to Spotify you pay a monthly fee you listen to unlimited music but Because Apple you don't have to pay your own 30 percent fee, they managed to undercut Spotify and launched it at 10 euros a month, which made Spotify seem unreasonable and greedy, so at this point, Spotify had had enough. they were no longer part of their internal buying scheme so they dropped their prices to 10 euros but that meant two things that customers could no longer upgrade to premium via the Spotify app and Spotify could no longer communicate freely with their iOS users now this is where it gets serious Spotify launched an entire ad campaign with a website attached titled it's time to play pher they are calling out Apple for misconduct and accusing them of using their power to give them an unfair advantage there is two sides to this story and some people actually say
spotifyare the ones causing the problem but let's hear them first if we head to this website they have made spotify claim three problems with what
appleis doing number one
appledenies the consumers the real choice add hurdles to Spotify's services, such as not being able to email promotions and offers to their customers when they're allowed to apple music number two there is this 30% apple tax for pu in app rchases which means spotify supposedly can't afford to offer the premium upgrade within their app and the third problem is that Apple breaks the law, apparently Apple doesn't give Spotify a fair chance, you might know that with the Google Assistant on Android phones you can control Spotify directly with your voice in Apple's Siri, you can't and it actually got worse when Apple released your home device arguably one of the best platforms for Spotify because there was no original support for it so it looks horrible and the fact that Spotify has done all this PR on it is a huge problem that they are publicly attacking to Apple but then Apple clapped their hands and you can tell they're not happy but I'll let you decide which side you're on here so first of all yeah Apple The fee 30% is a lot considering that Spotify has to pay royalties to every producer on the platform, their profit margins probably aren't as high as you'd think, but hey, let's go back ten years to when people had to physically do it. walk into a store to buy software, the retailers that would put the software on their shelves would often take up to 50% of the money, so their fee for providing the platform where customers can find that software and when you think about it, the App Store is just the virtual equivalent is the platform that allows people to discover and download Spotify and it looks like Spotify still wants to take advantage of this along with Apple's software development tools as well as their secure payment system without paying a dime to Apple. that Spotify didn't mention at all the fact that Apple's fee is only 30% for the first year after what passes for 15 and the fact that the rules that apply to Spotify are exactly the same as they apply to Two other Apps in the same category number two is Spotify complained that Apple doesn't support Spotify on Siri and Home Pod, but Apple doesn't really support most third-party services.
I am a company with a reputation for wanting to control the entire experience from start to finish. I'm sure that in itself is annoying for many companies, but the fact that it doesn't just apply to Spotify means it's hard to test. that Apple is actively discriminating against them and then Apple who you can tell are angry with this situation have openly accused Spotify of playing the victim to manipulate the consumer right now to play fair website and Spotify is making itself seem the one being bullied while Apple's words were under the rhetoric Spotify's goal is to make more money from the work of others and it's not just the App Store they're trying to squeeze but also artists, musicians and songwriters referring to how Spotify recently tried to sue content creators who complained they weren't being paid enough, yes Spotify also called their customers fanatics which in itself could be considered manipulative in doing This makes it sound like people need Spotify and Apple is kind of a villain for denying these poor fans the right to use Spotify but in reality they are paying customers and if Spotify were to increase the price, many of them would just switch to a different service and still be fair. so happy, so the whole situation is a mess, but which company would you side with?
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