Now that Spotify has drawn a line in the sand over Apple's app store rejection, supporters of both sides are starting to comment. Unsurprisingly, so far most, at least in tech, are lining up behind rebel Spotify.
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A statement from the Application Developers Alliance President and CEO Jake Ward in response to Apple’s rejection of Spotify’s newest mobile application:
“For the app marketplace to continue to thrive, users to have choices, and developers to have a competitive opportunity, platforms must give publishers clear and consistent guidelines. Platforms deliberately creating friction and obstacles between publishers and users is bad for business and ultimately hurts consumers.”
The battle between Spotify and Apple got much nastier this week, with the music streamer's top lawyer delivering Cupertino a message that they will no longer stand by as Apple uses the App Store approval process as a weapon.
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Spotify is claiming that Apple rejected a new version of its iOS app to protect Apple Music from competitors. In a letter from its chief counsel to Apple's top lawyer, Spotify says that Apple is “causing grave harm to Spotify and its customers” by rejecting an update to the music streamer's iOS app.
"we cannot stand by as Apple uses the App Store approval process as a weapon to harm competitors”
“This latest episode raises serious concerns under both U.S. and EU competition law,” Spotify general counsel Horacio Gutierrez wrote it a letter to Apple obtained by re/code. “It continues a troubling pattern of behavior by Apple to exclude and diminish the competitiveness of Spotify on iOS and as a rival to Apple Music, particularly when seen against the backdrop of Apple’s previous anti-competitive conduct aimed at Spotify… we cannot stand by as Apple uses the App Store approval process as a weapon to harm competitors.”
Spotify has also reportedly distributed the letter to Congressional staffers. Yesterday, Senator Elizabeth Warren (D. MA) accused Apple of working to “snuff out competition.” Apple, said Warren, “has placed conditions on its rivals that make it difficult for them to offer competitive streaming services” that compete with Apple Music.
Apple's Rejection
In it's rejection of the new version of The Spotify app, Apple reportedly cited “business model rules.” It also said that Spotify must use Apple’s billing system if it “wants to use the app to acquire new customers and sell subscriptions.”
Since Apple's rules for apps on iTunes clearly require using Apple's payment system, it seems likely that Spotify sought to provoke a confrontation by designing and seeking approval for an app that did not meet those standards.
Apple recently dropped the cut it takes from in app purchases and subscriptions from 30% to 15% after the first year. But Spotify has said, that's not good enough.
Thus far, neither Apple or Spotify have commented publicly.
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63% globally are streaming music monthly, but only 1 in 10 say they are paying. Can the music industry survive on revenue from just 10% of music's fans?
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63% globally are listening to music streaming at least once per month, but only 1 in 10 of those digital consumers say they are paying for the privilege, according to a new study.
Users in North America and North America are most likely pay to listen. But, even in those regions, the numbers remain modest.
"Figures like these are not necessarily bad news for streaming services – some can gather decent revenue through ad-supported access – but dependable income from monthly subscriptions remains the target to chase," according to Global Web Index. "So, that 16-24s are the most likely to be paying is certainly an encouraging sign."
