Spotify Sees Boost in Premium Subscriptions Following Apple’s Compliance with Injunction
Following a recent court ruling in favor of Epic Games against Apple, Spotify has reported a positive impact on its sales after the tech giant allowed iOS app developers to direct customers to external payment links without having to pay Apple’s commission. Spotify’s amicus brief filed in support of Epic Games in their legal battle with Apple reveals that the music streaming service has seen a significant increase in iOS users upgrading to a Premium subscription since the new policy was implemented.
Apple’s compliance with the court ruling has opened up new opportunities for iOS app developers in the U.S. to inform their customers about alternative payment options and potential discounts for paying directly. Spotify was quick to update its iOS app to take advantage of this new policy, directing users to its website to purchase subscriptions and audiobooks directly.
According to Spotify’s filing, the updated “Premium Destination Page” in its iOS app has been successful in guiding free users on how to upgrade to a paid subscription by providing pricing information and a checkout link. The company has observed a steady conversion rate on Android, where basic pricing information was already available, while iOS users have shown a substantial increase in conversions.
Spotify has refrained from disclosing specific numbers related to the increase in conversions but has noted a positive impact on audiobook purchases just days after launching the new product options. The company credits Apple’s compliance with the injunction for these improvements, emphasizing the benefits for developers and consumers alike.
Spotify’s brief aligns with other companies like Microsoft in supporting Epic Games as Apple continues to challenge the court’s decision. Apple is appealing the ruling and is reluctant to comply until all legal matters are resolved. The ongoing legal battle between Apple and Epic Games now proceeds to the U.S. Court of Appeals for the Ninth Circuit.
Despite Apple’s efforts to keep Fortnite out of the App Store, the popular game recently returned after a five-year hiatus following pressure from the court. Apple’s Emergency Motion to revert to its old policy during the appeal process was denied, with the court opting to follow the standard briefing schedule before ruling on the motion.
