Spotify says iOS payment change is bringing more subscribers

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Spotify recently shared that a change in Apple’s rules has helped it gain more paying customers on iPhones. This comes from a legal case between Epic Games and Apple over how payments are handled in iPhone apps.

Previously, Apple didn’t allow app developers to tell users about other ways to pay outside the App Store. This meant companies like Spotify had to use Apple’s payment system and pay a fee to Apple. 

But after a US court ruling in favor of Epic Games, Apple was forced to let app developers in the US show users other payment options, such as paying on their websites.

Spotify quickly updated its app to follow the new rule. The app now shows prices for subscriptions and links users to Spotify’s website to upgrade to Premium or buy audiobooks directly. 

According to Spotify, this update led to a big increase in iPhone users becoming Premium subscribers. (Via: TechCrunch) 

On Android, where Spotify was always allowed to show pricing and payment links, the number of new Premium users stayed about the same. So, Spotify believes the boost on iPhones clearly shows the benefit of the new rule.

Spotify also said this change made it easier to sell new products, like audiobooks, which they saw start selling just days after launch. 

Although Spotify didn’t share exact numbers, they emphasized that Apple following the court order has already made a real difference.

Spotify filed these comments as part of a legal document supporting Epic Games, joining companies like Microsoft. 

They argue that these changes help both app developers and consumers by allowing more choice and better prices.

Meanwhile, Apple is appealing the court’s decision and wants to delay following the new rules until the case is fully resolved. Still, the court hasn’t allowed that delay, so the current rules remain in place.

What do you think about this change? Do you think App Store payment rules need to be relaxed further? Tell us what you think below in the comments, or via our Twitter or Facebook.