Spotify is informing users who have subscribed to its Premium service via Apple that it will no longer support it as a payment method. Since 2016, Spotify has not allowed users to subscribe via the Apple Store app. This is a reminder to everyone. If someone subscribed to Spotify via this method years ago, they could continue to pay that way until today.
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Variety reports that the company is sending out emails to subscribers to let them know about the upcoming change. “The email is regarding Spotify Premium subscriptions through Apple’s billing service. Unfortunately, we no longer accept this billing method as a form of payment.” Spotify continues to say that those users will automatically be switched to the company’s ad- at the end of their current billing period. “If you wish to maintain your Premium subscription, you will need to re-subscribe after your last billing period has ended and your account will be transferred to the Free account.”
But this might be for the best. Apple takes 30% of in-app purchases, and Spotify users who signed up through in-app purchases were charged an extra $3 per month compared to those who signed up directly through Spotify. That means that even though Apple is now reducing its commission rate to 15% after the first year for subscriptions , this problem still exists.
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In a regular statement in 2019, Apple said it had collected 15% from about 680,000 Spotify customers. Users who have already paid through Apple can subscribe to the Premium service with a credit card or through PayPal.
Both Apple and Google charge a prorated percentage to developers who sell through their stores, regardless of how users purchase them (either through in-app purchases or through in-app subscriptions). Early last year, Google announced that it would be piloting a program on Android that would allow third-party billing systems, such as Spotify, to use a billing system called User Choice Billing (UCB). However, it has not been clarified how many users are signing up through UCB versus using Google’s in-app purchases system.
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Although rumors circulated that Apple would allow third-party app stores on iOS, there have been no official announcements about this or whether third-party fees will be charged.
