For the first time in history, audio platforms like Spotify and Apple Music have usurped on-demand music streaming on digital video platforms like YouTube and VEVO. Spotify says Apple is hindering the latest update for the Spotify app, while Apple says the Swedish company’s claims are “half truths”. Spotify’s proposed update, Apple argues, is “clearly meant to circumvent Apple’s in-app purchase rules.’ Mr Sewell’s reply to Mr Gutierrez expresses ‘disappointment” that Spotify has chosen to thrust its complaint into the public arena: ‘We find it troubling that you are asking for exemptions to the rules we apply to all developers and are publicly resorting to rumours and half-truths about our service, ‘ he wrote. Sewell insisted that Apple was treating Spotify as it would any other app maker, in keeping with antitrust law. Previously, a $12.99 subscription to Spotify Premium through the in-app function cost $3.00 more than signing up through Spotify’s website in order to cover Apple’s cut of the subscription cost. “I would be happy to facilitate an expeditious review and approval of your app as soon as you provide us with something that is compliant with the App Store’s rules”. This would in turn reduce the amount of monetary value shared with the competitor, Apple. And they’re also forbidden from selling iOS apps outside of the Apple’s app store. “It continues a troubling pattern of behavior by Apple to exclude and diminish the competitiveness of Spotify on iOS and as a rival to Apple Music, particularly when seen against the backdrop of Apple’s previous anticompetitive conduct aimed at Spotify”.
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The row has erupted at the same time that talk is growing that Apple might buy another music streaming service Tidal. In March, Spotify announced that it has 30 mill8ion paying subscribers.
In a music business where streaming has taken the lead from both digital downloads and physical CD sales, that’s no small difference.
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Essentially, the letter is highlighting the fact that Spotify has benefited a lot from the App Store and requests for the company to update its app to make it compatible with the App Store’s developer guidelines. It would seem that one of the companies would have to budge. Tidal’s appeal comes not only in its championing from artists such as Madonna and Beyonce, but also in its exclusive content – even now, it is still the only platform where listeners will be able to stream Prince’s back catalogue – and there are no motions at present for there to be any changes made to how the late singer’s greatest hits will be offered.
