nigh impossible to keep its prices competitive,
and that Apple Music is able to generate higher
returns on subscriptions. Spotify added that if
it offered in-app purchases and paid the “Apple
tax,” it would force the company to artificially
inflate the price of its Premium membership well
above the price of Apple Music.
And Spotify’s whinging isn’t for nothing. Though
the company has more users around the world
than Apple (Spotify has 124 million premium
users around the world, versus Apple’s 60 million
at the last reported count), Apple overtook
Spotify in the United States in 2019, signaling
its dominance in the streaming market.
Where Apple could suffer in the coming months,
however, is with changes to iOS. Antitrust
pressures are mounting, and Tim Cook’s strategy
could be to open up the operating system
to give third-party streaming services more
power. Though Apple is unlikely to back down
on its percentage cut from in-app purchases,
the company is working on a new feature that
would allow users to select third-party apps
as their default on iOS 14 and iPadOS 14,
meaning Spotify could be selected as a default
on HomePods and Apple devices. By opening
up iOS and iPadOS to third-parties, Apple could
prevent further antitrust complaints and create
a level playing field, where music streaming
services and other apps could better compete
with Apple’s core offerings. It would also force
the Cupertino giant to up its game and force
it to keep coming out with innovative features
to encourage users to stay loyal, which can
ultimately be a good thing for consumers and
improve music services.