Apple Music and Spotify continue fiery feud
Music streaming services Apple Music and Spotify are no strangers to exchanging business blows with one another. However the latest string of actions and statements has increased the severity of the competitiveness to a new level.
Earlier this year in May, Apple refused Spotify’s latest update on the App Store, claiming there were “business model issues”. Those ‘business model issues’ consisted of Spotify removing in-app billing, in turn removing all of Apple’s revenue they were receiving from their competitor. In a letter written by Spotify’s general counsel Horacio Gutierrez, Apple stated that if “Spotify wants to use the app to acquire new customers and sell subscriptions” it would need to align to its proper procedure’s and use Apple’s billing system.
However, Apple Music’s beef with Spotify can be traced back to 2014. Spotify was strong-armed to raise their $10/month premium subscription service to $12.99 to cover the Apple Music’s requested 30% cut for using their online store. Spotify then craftily told their customers to cancel and renew their subscription via the Spotify website for a lower cost – essentially creating a loophole and bypassing Apple Music’s parent company
Spotify’s Head of Communications and public policy, Jonathan Prince, has since broken his silence on the matter, responding to Senator Warren’s comment’s that the companies have “placed conditions on its rivals that make it difficult for them to offer competitive streaming services.”
“Apple has long used its control of IOS to squash competition in music, driving up the prices of its competitors, inappropriately forbidding us from telling our customers about lower prices, and giving itself unfair advantages across its platform through everything from the lock screen to SIRI. you know there’s something wrong when apple makes more off a Spotify subscription than it does off an apple music subscription and doesn’t share any of that with the music industry. they want to have their cake and eat everyone else’s too.”
Compounded by the possibility of Apple Music indirectly purchasing Tidal in the near future, Spotify’s service is set to have some difficulty over the coming years.