Spotify surely makes a lot of money through in-app subscriptions on iPhones and iPads. But it doesn't prefer to make the money that way - the company would rather have users subscribe directly via web, and it's starting to spread the word.
Seemingly no longer afraid to upset Apple now that Apple Music is a proper rival, Spotify has begun emailing iPhone customers to tell them that they'll save US$3 a month by ending their subscriptions via the App Store and restarting them via the web. That's because the price paid through the app is increased to compensate for Apple taking a 30% cut of all sales.
Currently, Spotify Premium is $13/£13 a month from the App Store, but just $10/£10 a month directly through Spotify. And 30% of that larger sum is just shy of $4/£4, so despite the higher price, switching people away from iOS billing actually lets Spotify make more money per user. It's a smart decision for all involved, and surely any users who didn't realize they were overpaying will want to switch.
The email includes a step-by-step breakdown of how to switch over billing, which means turning off your automatic renewal via iTunes, waiting for your current month's subscription to run out, and then restarting your membership via Spotify proper. (The third listed step is simply to dance to a peppy playlist since you're saving money, which is fair. We'll allow it.)
Since Apple Music is just $10/£10 through iOS or iTunes - and has a three-month trial - taking a moment to reminding customers of Spotify's value certainly isn't a bad idea right now. We still think Spotify is tops in the streaming music space, but Apple Music is very young and will improve. And since it's now the "default" service available to Apple users, it's sure to get a lot more attention going forward.
[Source: The Verge]