I read an article on Verge last night that mentioned Spotify is sending users email to cancel their Spotify Music subscription through Apple’s App Store and sign up directly to save money. That surprised me. I knew that Apple charged companies a percentage of in-app purchases but I didn’t realize Spotify was passing the charge on to users. I assume their margins are too thin to eat the 30% that Apple was taking each month. Spotify Premium costs $3 more a month ($12.99/mo. vs. $9.99/mo.) through Apple’s App Store than it would otherwise.
The solution for those who have been paying an extra $3 a month looks simple enough. You won’t get the difference back for previous months but you can save $3 a month moving forward. You can start to make the switch directly from your iOS device. Follow these instructions to cancel future payments through the App Store:
- Tap on Settings
- Tap on iTunes & App Store
- Tap on your Apple ID
- Tap on View Apple ID (log in if necessary)
- Tap Manage under the Subscriptions header
- Toggle Automatic Renewal to ‘Off’ for Spotify
After your current billing cycle ends you can subscribe directly through the Spotify site and pay $9.99 a month. That’s right in line with other popular streaming Music services like Apple Music and Tidal. It sure beat paying $12.99 a month for the same service through the App Store. You will still have access from your iPhone and iPad.
The fact that Apple charges companies like Spotify 30% for in-app purchases gives their new Apple Music service a distinct advantage over competitors for users who want to pay directly through Apple. According to the Verge article linked at the top of our post, the US Justice Department and FTC are looking into Apple for allegedly pressuring record labels to end free streaming through Spotify. If successful Apple would take away Spotify’s biggest advantage over their new Apple Music streaming service.
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