Spotify is all excited about how its new feature to direct customers to external payment links on its iOS app is boosting sales. The company recently filed an amicus brief in support of Epic Games in its legal battle with Apple over external payments on the App Store. Spotify claims that its data shows a significant increase in iOS users upgrading to a Premium subscription since the update supporting web payments.
Apple had to allow U.S. app developers to guide customers to alternative payment methods after the U.S. District Court in Northern California ruled in favor of Epic Games. This decision forced Apple to let developers inform customers about web billing options and any discounts available for direct payments within their iOS apps. Spotify was quick to update its iOS app to capitalize on this new policy, which allows users to buy audiobooks directly from the app.
According to Spotify, the results have been overwhelmingly positive. The company’s internal data indicates a notable increase in iOS users upgrading to Premium subscriptions since implementing the changes. Spotify’s revised “Premium Destination Page” now provides free users with information on how to upgrade to a paid subscription, including pricing details and a link to a checkout page. The company has observed immediate positive effects following the introduction of these features.
In the two weeks since the new page went live, Spotify reports that the conversion rate from free to Premium tier has remained consistent on Android. However, iOS users have shown a substantial increase in conversion rates, suggesting that Apple’s compliance with the court order has played a significant role in this growth. Spotify also notes a positive impact on audiobook purchases just days after launching the new product options.
While Spotify did not disclose specific numbers related to these increases, its brief in support of Epic Games aligns with similar statements from other companies like Microsoft. Apple, on the other hand, is appealing the court’s decision and has filed an Emergency Motion to revert to its previous policies while the appeal process is ongoing. However, the court has decided to follow the default briefing schedule and will rule on the motion in due course.
As the legal battle between Apple and Epic Games continues in the U.S. Court of Appeals for the Ninth Circuit, the recent return of Fortnite to the U.S. App Store after a five-year absence has garnered attention. Apple’s reluctance to comply with the court order and its attempts to keep Fortnite out of the App Store have led to increased scrutiny of its business practices. The outcome of this case could have significant implications for the future of app distribution and payment methods on iOS platforms.
