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Spotify Subscriptions Rise with iOS External Payments

May 21, 2025
Spotify Subscriptions Rise with iOS External Payments

Spotify Reports Positive Impact from iOS Payment Link Changes

Spotify has indicated that its ability to guide customers to external payment options within its iOS application is already yielding favorable results in sales figures. Recent data suggests a notable upswing in Premium subscription upgrades among iOS users.

Background of the Legal Battle

Following a ruling by the U.S. District Court in Northern California favoring Epic Games in its dispute with Apple regarding external payments on the App Store, Apple was compelled to permit U.S. app developers to direct users to alternative payment methods directly from within their iOS apps.

This change eliminates the requirement for developers to remit a commission to Apple for these transactions.

Implementation by Spotify

iOS app developers in the U.S. now have the option to inform their user base about available web billing options and any associated discounts for direct payment. Spotify was among the first to implement this new policy within its iOS app.

The updated application clarifies subscription costs, directs users to the Spotify website for purchases, and facilitates direct audiobook acquisitions.

Positive Outcomes Observed

According to a newly filed amicus brief supporting Epic Games, Spotify’s internal data demonstrates “a significant increase in iOS users upgrading to a Premium subscription” as a direct result of these updates.

The filing emphasizes the benefits of the 2025 Order, stating it has created substantial advantages for both developers and consumers.

Details of the Upgrade Process

Spotify’s revised “Premium Destination Page” within the iOS app now informs free users about the benefits of upgrading to a paid subscription. It provides pricing details and a direct link to the checkout page.

The company reports an immediate positive impact following the addition of this link and pricing information.

Conversion Rate Analysis

Over the initial two weeks with the new page live, Spotify observed a “relatively constant” conversion rate from free to Premium on Android, where pricing information has long been available.

However, a substantial increase in the conversion rate was noted among iOS users.

Spotify attributes this increase to Apple’s compliance with the injunction stemming from the 2025 Order.

Audiobook Purchases Also Affected

Furthermore, Spotify is already observing positive effects on audiobook purchases, just three days after launching the new product options.

Specific numerical data regarding these increases were not disclosed when Spotify was contacted for comment.

Support for Epic Games

Spotify’s brief aligns with those submitted by Microsoft and other companies in support of Epic Games, as Apple attempts to challenge the injunction impacting its U.S. App Store operations.

Apple's Response and Ongoing Appeals

Apple is seeking to delay full compliance with the court’s decision until all legal proceedings are finalized, and has initiated an appeal.

Initially, Apple attempted to exclude Epic GamesFortnite from the App Store for similar reasons, but was compelled by the judge to reinstate the game or provide justification for non-compliance.

Fortnite's Return and Current Status

On Tuesday, Fortnite became available on the U.S. App Store after a five-year absence.

The legal dispute between Apple and Epic Games is currently being reviewed by the U.S. Court of Appeals for the Ninth Circuit.

Apple’s request for an emergency motion to revert to its previous policies during the appeal process was denied by the court, which will adhere to a standard briefing schedule before ruling on the motion.

#spotify#subscriptions#ios#external payments#apple#music streaming