Spotify, the popular music streaming service, has made an important update. They have decided to stop using Apple’s in-app purchase system for their Premium service payments. While Spotify had already ceased allowing new subscriptions through Apple’s platform in 2016, existing subscribers could continue using this method until now. The decision comes as Spotify aims to provide users with a more streamlined and cost-effective payment experience. Let’s delve into the details of this change and its implications for Spotify subscribers.
Spotify has begun notifying users who subscribed to its Premium service through Apple‘s in-app purchase system that this payment method will no longer be accepted. In an email sent to affected subscribers, Spotify stated that it no longer supports Apple’s billing service as a form of payment. As a result, at the end of the current billing cycle, these subscribers will be automatically moved to Spotify’s Free tier, which includes advertisement.
Since 2016, Spotify has prohibited new subscriptions through Apple’s in-app purchase system due to the high commission fee of 30 percent imposed by Apple. This resulted in users paying an additional $3 per month compared to subscribing directly through Spotify. Although Apple reduced its commission rate to 15 percent for subscriptions after the first year, the disparity remained. In a 2019 regulatory filing, Apple disclosed that it collected the 15 percent fee from approximately 680,000 Spotify customers.
To continue enjoying Premium benefits, Spotify users who previously subscribed through Apple’s in-app purchase system will need to resubscribe after their last billing period has ended. Spotify recommends switching to Premium using a credit card or PayPal, which offers more convenient and cost-effective payment options.
While both Apple and Google impose a “tax” on their app stores, Google took steps toward flexibility by introducing the User Choice Billing (UCB) program for third-party billing systems on Android. Spotify was one of the first companies to adopt UCB. Meanwhile, rumors have circulated about Apple potentially allowing third-party app stores on iOS, although no official plans have been announced.
By discontinuing support for Apple’s in-app purchase system, Spotify aims to streamline the payment process for its users and reduce the additional cost incurred through this method. Transitioning to alternative payment options like credit cards or PayPal will give users more control over their subscriptions and ensure a seamless and cost-effective experience.
Spotify’s decision reflects its commitment to offering users greater choice and convenience in managing their Premium subscriptions. The move empowers users to opt for payment methods that best suit their preferences, enhancing their music streaming experience.
As Spotify prepares to bid farewell to Apple’s in-app purchase system for Premium subscriptions, it seeks to optimize user experience and affordability. By transitioning subscribers to its Free tier and offering alternative payment options, Spotify aims to provide greater flexibility and cost savings to its loyal user base. This decision aligns with Spotify’s commitment to delivering a seamless and user-centric music streaming platform, empowering individuals to enjoy their favorite music easily and conveniently.
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