0

As you may already know, Spotify started sending out emails to its customers to stop subscribing to the Premium account through iOS App Store's In-app Purchase mechanism (which costs $12.99) and subscribe using Spotify website (which costs $9.99).

The reason behind this difference is that Apple charges 30% of the purchase price as its noted here. The purchase price of Spotify Premium through App Store is $12.99. But this doesn't make sense to me. 30% of $12.99 is approximately $3.9 so Spotify will be making $9.1 instead of $9.9.

Is the 30% calculated after the developer states its intended price? i.e. Spotify says that it wants to earn $9.99 with each purchase. Apple says fine, I'll charge $12.99, have $3 (which is 30% of $9.99) for myself and you can have the remaining $9.9. (I don't believe this is the case.)

Or Spotify is actually selling its Premium account cheaper through App Store? What I mean is that in order to earn $9.99 per purchase, one should charge approximately $14.28.

Can someone please clarify the situation? Thanks.

1

It's a simple marketing ploy.

Apple Music is $9.99 a month

Spotify is $12.99 a month, through the Apple Store.

Spotify want to match Apple's price, but don't want to cut their revenue to 70% of $9.99, so they're offering you $9.99 direct, rather than $12.99 through Apple.

That means for every person who changes to the direct method, Spotify actually receive more than they used to through Apple.

  • So is my impression that Spotify is making less than $9.99 through the App Store correct? – Behdad Jul 11 '15 at 9:11
  • Correct, about 9.09, give or take. Before they had to price-match Apple, that was probably fine. Offering the direct payment at 9.09 would look odd, so they round it up to the next stupid number [a penny short of a sensible number, of course] – Tetsujin Jul 11 '15 at 9:14

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .