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Spotify Encourages Customers to Cancel App Store Subscription, Resubscribe via Web to Save $3
Spotify is sending emails to its customers encouraging them to stop paying for the Spotify music service through Apple's App Store, reports The Verge. The email informs customers they can save $3 per month on their Spotify fees by canceling their App Store Spotify subscription and resubscribing through the Spotify website.
Spotify subscriptions that people signed up for using the App Store are priced at $12.99 to account for the 30 percent fee that Apple collects for all app and subscription revenue routed through the App Store. The same service is priced at $9.99 through Spotify's website.
Customers who subscribe to Spotify through the App Store might mistakenly think that Spotify is more expensive than Apple's new streaming service, Apple Music, which is also priced at $9.99 per month. That's true, but only when the service is purchased via the App Store.
Spotify's emails are accompanied by a step-by-step tutorial that walks customers through the process of turning off auto-renew on their App Store subscriptions and then instructs them to wait for the service to run out before resubscribing to the Spotify service on the web.
Spotify continues to be the dominant on-demand streaming service in the music industry with 75 million active users and 20 million paid subscribers, but it is unclear what impact Apple Music will have on the company's business.
Spotify subscriptions that people signed up for using the App Store are priced at $12.99 to account for the 30 percent fee that Apple collects for all app and subscription revenue routed through the App Store. The same service is priced at $9.99 through Spotify's website.
Customers who subscribe to Spotify through the App Store might mistakenly think that Spotify is more expensive than Apple's new streaming service, Apple Music, which is also priced at $9.99 per month. That's true, but only when the service is purchased via the App Store.
Spotify's emails are accompanied by a step-by-step tutorial that walks customers through the process of turning off auto-renew on their App Store subscriptions and then instructs them to wait for the service to run out before resubscribing to the Spotify service on the web.
Spotify continues to be the dominant on-demand streaming service in the music industry with 75 million active users and 20 million paid subscribers, but it is unclear what impact Apple Music will have on the company's business.
Tags: Spotify, Apple Music
[ 286 comments ]
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47 months ago
('https://www.macrumors.com/2015/07/08/spotify-emails-app-store-subscriptions/')
Spotify is sending emails to its customers encouraging them to stop paying for the Spotify music service through Apple's App Store, reports The Verge ('http://www.theverge.com/2015/7/8/8913105/spotify-apple-app-store-email'). The email informs customers they can save $3 per month on their Spotify fees by canceling their App Store Spotify subscription and resubscribing through the Spotify website.
Spotify subscriptions that people signed up for using the App Store are priced at $12.99 to account for the 30 percent fee that Apple collects for all app and subscription revenue routed through the App Store. The same service is priced at $9.99 through Spotify's website.
Customers who subscribe to Spotify through the App Store might mistakenly think that Spotify is more expensive than Apple's new streaming service, Apple Music, which is also priced at $9.99 per month. That's true, but only when the service is purchased via the App Store.
Spotify's emails are accompanied by a step-by-step tutorial that walks customers through the process of turning off auto-renew on their App Store subscriptions and then instructs them to wait for the service to run out before resubscribing to the Spotify service on the web.
Spotify continues to be the dominant on-demand streaming service ('https://www.macrumors.com/2015/06/10/spotify-75m-active-users-526m-funding/') in the music industry with 75 million active users and 20 million paid subscribers, but it is unclear what impact Apple Music will have on the company's business.
Article Link: Spotify Encourages Customers to Cancel App Store Subscription, Resubscribe via Web to Save $3 ('https://www.macrumors.com/2015/07/08/spotify-emails-app-store-subscriptions/')
Begun, the streaming music wars have.
47 months ago
it is unclear what impact Apple Music will have on the company's business.
I think it's fairly clear.
47 months ago
Spotify is scared and knows when Apple enters a market it's usually lights out for the little guy. Of course Apple Music has to work right first...
I am using Apple Music. Trust me, it works right.
47 months ago
This business model is $9.99 per month. Since Apple decided to be greedy, Spotify has to up charge to compensate for the loss they would take. Apple doesn't get to take a 30% loss for Apple Music since hey own it. It's not a fair play ground.
This is a good move by Spotify.
I hate it too when people charge me for using their platform. They should design, maintain, and market the platform and let me use it for free. So unfair.
47 months ago
('https://www.macrumors.com/2015/07/08/spotify-emails-app-store-subscriptions/')
Spotify is sending emails to its customers encouraging them to stop paying for the Spotify music service through Apple's App Store, reports The Verge ('http://www.theverge.com/2015/7/8/8913105/spotify-apple-app-store-email'). The email informs customers they can save $3 per month on their Spotify fees by canceling their App Store Spotify subscription and resubscribing through the Spotify website.
Spotify subscriptions that people signed up for using the App Store are priced at $12.99 to account for the 30 percent fee that Apple collects for all app and subscription revenue routed through the App Store. The same service is priced at $9.99 through Spotify's website.
Customers who subscribe to Spotify through the App Store might mistakenly think that Spotify is more expensive than Apple's new streaming service, Apple Music, which is also priced at $9.99 per month. That's true, but only when the service is purchased via the App Store.
Spotify's emails are accompanied by a step-by-step tutorial that walks customers through the process of turning off auto-renew on their App Store subscriptions and then instructs them to wait for the service to run out before resubscribing to the Spotify service on the web.
Spotify continues to be the dominant on-demand streaming service ('https://www.macrumors.com/2015/06/10/spotify-75m-active-users-526m-funding/') in the music industry with 75 million active users and 20 million paid subscribers, but it is unclear what impact Apple Music will have on the company's business.
Article Link: Spotify Encourages Customers to Cancel App Store Subscription, Resubscribe via Web to Save $3 ('https://www.macrumors.com/2015/07/08/spotify-emails-app-store-subscriptions/')
47 months ago
Good move by Spotify. Streaming is a competitive market and being in the position that Apple is in, they are definitely capable of leveraging this unfair advantage. I don't take any issue with Spotify responding like this, makes complete sense.
47 months ago
In case you didn't know, the normal Premium price is only $9.99, but Apple charges 30 percent on all payments made through iTunes.
Tricky wording from Spotify. I managed to get my hands on the unedited version:
"In case you didn't know, you've been paying a higher rate than you needed to. This is because Apple charges 30% on all payments through iTunes. We could have kept it $9.99, but we'd rather our customers pay for the tax. This didn't concern us until Apple Music launched and now we don't want you jumping ship over the higher price. We could have notified you about this sooner but were waiting to see Apple Music's pricing and gauge consumer interest."
Tricky wording from Spotify. I managed to get my hands on the unedited version:
"In case you didn't know, you've been paying a higher rate than you needed to. This is because Apple charges 30% on all payments through iTunes. We could have kept it $9.99, but we'd rather our customers pay for the tax. This didn't concern us until Apple Music launched and now we don't want you jumping ship over the higher price. We could have notified you about this sooner but were waiting to see Apple Music's pricing and gauge consumer interest."
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