ABOUT Spotify recently announced the end of support for payments made through app store from apple. More than seven years after the suspension of the Premium subscription option for new customers with this method, the platform notifies old subscribers who are still using this payment method, informing them to switch to an alternative payment system such as PayPal or a credit card at the end of the current billing period.

The company sent emails to legacy Premium subscribers explaining the situation: “We reached out to you because when you became a Spotify Premium subscriber, you used Apple’s billing service to subscribe. Unfortunately, we no longer accept this payment method.“After the last payment is processed, accounts will be automatically upgraded to free mode with ads. If they want to keep the Premium subscription, users must complete a new subscription after the end of the billing period, when their accounts will be upgraded to free mode.

A spokesperson for Spotify confirmed the decision, saying they are notifying “a small number of users whose legacy payment method associated with their premium account is being discontinued.“. According to the representative, this measure is aimed at providing a stable and high-quality experience for all users.

This change in the way you pay through the App Store happened in 2016 when Spotify decided to no longer accept premium subscriptions through the system, thus avoiding Apple’s up to 30% fee for in-app purchases. The audio streaming company had previously introduced payment through the App Store, but decided to discontinue it due to additional $3 monthly fees charged to customers to offset Apple’s fees and keep its own revenue.

It’s worth noting that in 2019, Spotify filed an antitrust complaint against Apple in the European Union, alleging that the App Store’s policies hurt competition. The platform also questioned Google Play Store fees at the time. However, last year Spotify and Google announced a pilot program that would allow customers to choose between the two companies’ payment systems in certain markets. Google continues to charge fees for these transactions, albeit at a 4% discount from the standard fee.

Despite the change in payment through the App Store, it is expected that this measure will not affect the majority of Spotify users. Apple reportedly reported in 2019 that only about 680,000 Spotify subscribers were making payments through its platform, less than 1% of its total Premium subscribers, which had already passed the 100 million mark at the time. Currently, according to Spotify’s Q4 2022 earnings reports, the service already has over 200 million paid subscribers.

Flight from Apple’s high fees

This decision by Spotify reflects its ongoing commitment to avoid the high fees charged by Apple and maintain a healthy competitive environment in the music streaming market. By ending support for payments through the App Store, the company intends to offer a more consistent and better subscription experience for all of its users.

To ensure a smooth transition for affected subscribers, Spotify notifies them in advance to update their payment method. The ability to migrate to alternative systems such as PayPal or a credit card gives users the flexibility they need to continue enjoying the benefits of a Premium subscription.

While the impact of this change is expected to be minimal for most users, it highlights the complexities and challenges that streaming music platforms face regarding payment policies and fees applied by app stores. Spotify has previously expressed its concerns about these issues by filing an antitrust complaint against Apple in the European Union.

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Source: Variety

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