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Apple’s app update boosts Spotify subscription growth

The news: Spotify said it’s seeing a spike in Premium subscription sign-ups following Apple’s approval of an app update May 19.

  • The music streamer said that Apple’s recent compliance with a federal ruling is helping developers and consumers alike and “enabling new product innovations.”
  • “Spotify’s internal data show that its iOS app updates have already resulted in a significant increase in iOS users upgrading to a Premium subscription,” the company said, per TechCrunch.

With the updates, app users can …

  • See subscription and audiobook pricing and whether there are any discounts available.
  • Click a link in the app to buy a Spotify subscription or change their subscription tier.
  • Buy audiobooks directly and purchase additional listening hours.
  • Use payment methods outside Apple’s system.

Why it matters: Spotify said in a blog post that these updates are “obvious and user-friendly” and that this is a win not only for itself but for other companies and developers.

It attributed the changes to a recent ruling in the Epic Games versus Apple antitrust case and said that these “basic services” should have been allowed years ago.

“(The ruling) also helps level the playing field by allowing all developers to offer basic pricing information and easy-to-access links for consumers … with no unnecessary steps or additional taxes levied by Apple,” Spotify said.

Our take: Breaking down Apple’s walled garden has been a multiyear effort for Epic Games and regulators, and Spotify’s quick subscription spike could show how broadly damaging Apple’s lack of compliance was for app developers.

However, considering Apple’s history of appeals, these new features could be temporary for Spotify users.

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