Since the beginning of May, Apple has been required to allow developers to direct their users to online stores: they can then purchase content for their apps, and Apple sits on its commission. The American courts have decided this, which explains why this small wind of freedom is only blowing in the United States.
Sharp increase in Spotify Premium subscriptions
Apple has certainly appealed and even requested an emergency injunction to avoid having to open the App Store while the legal proceedings are ongoing, but to no avail. And publishers have been quick to take advantage of the situation. Amazon has updated its Kindle app, which finally provides a simple way to buy digital books online directly from the application. Spotify also quickly offered iOS app users access to its online store to purchase a subscription.
And… it works, according to the streaming platform! “Spotify’s internal data shows that updates to its iOS app have already led to a significant increase in the number of iOS users upgrading to a Premium subscription,” the company claims in an amicus brief (voluntary intervener) in Epic Games’ proceedings against Apple.
“[The injunction] has generated substantial benefits for developers and—more importantly—for consumers,” Spotify continues. Subscriptions sold online are not subject to Apple’s 15% or 30% commission; in fact, they are actually cheaper (i.e.… the same price as everywhere else). And the service can also offer them occasional promotions. "Apple's compliance with the order also enabled the launch of new product innovations that would not have been possible without the injunction."
Spotify states that the conversion rate from free users to the Premium subscription remained stable on Android, where pricing information was already available but in a fairly basic manner. However, it increased significantly on iOS.
According to the company, this increase is directly linked to Apple's compliance with the court order. The platform is also seeing the first positive effects on audiobook sales, just three days after the launch of the new options. However, Spotify has not released specific figures.
Apple is currently trying to win a court order to suspend the implementation of these opening measures. Now Epic and its backers must convince the courts that absolutely nothing needs to be changed. Microsoft has also made its point.
Source: TechCrunch
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