Categories: NewsTech

Apple argues less than 1% of Spotify Premium subscribers are paying 15% fee

Apple and Spotify have been going at it tooth and nail, with the crux of the issue between them being the 30% ‘Apple Tax’ that is levied on revenue generated using Apple’s payment system. Due to its ongoing competition with Apple Music, Spotify has long advocated against the tax—they feel that Apple is holding a monopoly over other tech companies.

This eventually escalated to the point that Apple and Spotify both have dedicated articles refuting each other’s claims, with Spotify even going as far as creating a microsite: TimetoPlayFair. But how much of a monopoly is it, even? Spotify, according to The Verge, has 217 million monthly users, while Apple Music has around 40 million paid subscribers. Given their slightly differing payment models, it isn’t an exact comparison—but it conveys the message that it isn’t big bad Apple all the time.

“Only 15%”

In response to these allegations, Apple has responded in a filing with the European Commission that states that only 680,000 out of 100 million Spotify Premium customers are paying a tax of 15%. The filing further reveals that none of Spotify’s users, premium or free versions, are paying 30% in Apple’s tax.

The 30% tax that Apple imposes is only for the first year, while the rate drops to 15% in the ensuing years. This is something that the Spotify CEO failed to mention in his complaints, while Apple is also refuting claims that Spotify users that paid through the Spotify website (instead of through the App Store) stopped receiving emails and updates from Spotify.

However, Spotify isn’t the only company that’s making noise around the Apple Tax. In December of last year, Netflix stopped allowing iOS users from paying for subscriptions via the app:

“We no longer support iTunes as a method of payment for new members.”

Currently, Spotify is the world’s most popular audio streaming service with over 200 million members—however, only half (approximately) of their users are signed up with Spotify Premium.

While there is a certain degree of validity to Spotify’s complaints, the argument that Apple is monopolising the market does seem to ring empty, especially if we’re talking about music streaming services.

[ SOURCE , VIA ]

Related reading

Recent Posts

Malaysia Airlines’ new A330neo grounded temporarily due to production issues

Malaysia Airlines has temporarily grounded its brand new Airbus A330neo after completing four commercial flights.…

8 hours ago

Proton e.MAS 7: Here’s how much it cost to maintain this EV

Pro-Net recently revealed that you only need to service the new Proton e.MAS 7 EV…

2 days ago

Proton e.MAS 7: How much does it cost to replace the tyres?

The Proton e.MAS 7 is one of the most value for money SUVs at the…

2 days ago

Samsung to launch its new AI-powered home appliances with improved ecosystem integration at CES 2025

Samsung has announced that it will be holding its press conference titled "AI for All:…

2 days ago

SoyaCincau Awards 2024: The Best Phones of the Year

Modern smartphones are very capable computing devices, thanks to powerful hardware trickling down the price…

2 days ago

CelcomDigi offers 5G Home WiFi at RM69/month for Postpaid customers

If you're a CelcomDigi Postpaid 5G customer and can't get fibre broadband for your home,…

2 days ago

This website uses cookies.