Spotify, the Swedish music streaming giant, has announced a major change in its billing structure that will affect its Apple users. The customers who signed up for their Spotify subscription through Apple will soon have to choose a different payment method. The change will particularly affect users who took out their Spotify Premium subscription between June 2014 and June 2016 and billed through Apple.
The impact on users
Affected customers are currently receiving an email from Spotify informing them that billing via Apple will soon no longer be possible. After the next billing, they will automatically be downgraded to the free plan. Those who want to continue using premium access will have to sign up for a new subscription and choose a different payment method, such as PayPal or credit card.
The background to the change
The change is part of a long-running dispute between Spotify and Apple. Spotify has accused Apple of exploiting its market power and has filed a complaint with the EU Commission. Spotify no longer wants to pay commissions to Apple and has therefore already stopped billing Apple for new subscriptions. The current change now also affects existing subscriptions.
The impact on Apple
The number of Spotify subscriptions billed through Apple has already dropped. In 2019, Apple said there were about 680,000 Spotify subscribers left from whom commissions were collected. With no new subscriptions possible through Apple, that number is likely to have dropped further.
Spotify’s explanation
Spotify has confirmed the move to Variety magazine, explaining that it is about providing the “best subscription experience” to all customers. Although the change may result in losing some existing subscribers, Spotify sees it as a necessary step to improve its services.
