Spotify Reports iOS Subscription Surge After External Payment Option
Spotify has announced a significant increase in iOS Premium subscriptions after implementing external payment links. This follows the court ruling in favor of Epic Games, which forced Apple to allow developers to direct users to alternative payment methods.
Following the ruling, Spotify quickly updated its iOS app to include external payment links and pricing information. This allows users to subscribe to Spotify Premium directly, bypassing Apple's in-app purchase system and associated commission fees.
In a recent legal filing supporting Epic Games, Spotify stated that its internal data shows a substantial rise in iOS users upgrading to Premium since the update. The company attributes this growth directly to the implementation of external payment options.
Positive Impact on Conversions
Spotify noted a consistent conversion rate from free to Premium on Android, where external payment information was already available. However, the conversion rate on iOS saw a marked increase after implementing the new payment system.
While Spotify declined to share specific figures, the company emphasized the positive impact of the court ruling and subsequent app update. The change also enabled new product innovations, such as direct audiobook purchases within the app.
Ongoing Legal Battle
Spotify's filing supports Epic Games in its ongoing legal battle with Apple over App Store policies. Apple is appealing the court's decision and seeking to revert to its previous policy. However, the court has denied Apple's emergency motion, opting to follow the standard briefing schedule before ruling.
This development marks a significant win for developers and consumers, offering more payment flexibility and potentially lower subscription costs. The case continues to unfold and will likely have lasting implications for the mobile app ecosystem.
