Tuesday January 21, 2020
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Swedish Music Streaming Giant Spotify Files Complaint Against Apple’s App Store Rules

According to Spotify, if it pays this tax, it would force it to artificially inflate the price of its premium membership well above the price of Apple Music

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Spotify Music still leads outside of the US, tallying 75 million subscribers as part of its first earnings report in May.
Spotify Music still leads outside of the US, tallying 75 million subscribers as part of its first earnings report in May. Pixabay

Swedish music streaming giant Spotify said it has filed an antitrust complaint against Apple with the European Union (EU) alleging that the tech giant is harming consumer choice and stifling innovation via the rules it enforces on its iOS App Store.

“It’s why, after careful consideration, Spotify has filed a complaint against Apple with the European Commission (EC), the regulatory body responsible for keeping competition fair and non-discriminatory.

“In recent years, Apple has introduced rules to the App Store that purposely limit choice and stifle innovation at the expense of the user experience — essentially acting as both a player and referee to deliberately disadvantage other app developers,” Daniel Ek, CEO of Spotify, wrote in a blog post on Wednesday.

Cupertino-based Apple requires that Spotify and other digital services pay a 30 per cent tax on purchases made through Apple’s payment system, including upgrading from a free to premium subscription.

Apple, Campus, China
A customer is entering the Apple store in Fairfax, Virginia. VOA

According to Spotify, if it pays this tax, it would force it to artificially inflate the price of its premium membership well above the price of Apple Music.

“And to keep our price competitive for our customers, that isn’t something we can do,” added Ek.

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The music streaming services giant has also started a press campaign, including a website dedicated to the iPhone maker’s unfair behaviour and a YouTube video explaining the company’s grievances.

Earlier this week, Democratic Senator Elizabeth Warren, who recently launched her 2020 presidential bid, said she was in favour of passing laws that prevent large e-commerce platforms with global annual revenue of $25 billion or more, from owning both the platform and any sellers on it. (IANS)

Next Story

Spotify Launches SAI Techonology for Podcast Advertising

Spotify launches new tool for podcast advertising

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Spotify on Thursday launched what it calls the 'Streaming Ad Insertion (SAI) at the ongoing CES 2020. Pixabay

Swedish music streaming company Spotify on Thursday launched what it calls the ‘Streaming Ad Insertion (SAI) at the ongoing CES 2020 here, a new proprietary podcast ad technology that powers Spotify Podcast Ads to insert more targeted advertising into podcasts in real time.

The SAI technology leverages streaming to deliver Spotify’s full digital suite of planning reporting and measurement capabilities for Spotify original and exclusive podcasts.

According to the company, this includes data such as actual ad impression, frequency (number of times a listener heard the ad), reach and anonymized audience insights (age, gender, device type). This is the first time this type of data is available for advertisers and podcast creators.

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With this technology, Spotify is offering the intimacy, quality and efficacy of traditional podcast ads with the precision and transparency of modern-day digital marketing. Pixabay

Advertisers generally have a sense for who they are reaching, based on survey data and the magazine’s target audience.

Total circulation measures the number of doorsteps that the issue hits, but there’s no precise data on how many readers actually opened the magazine, let alone reached or acted on the ad.

Until now, podcast advertising has experienced many of these same challenges because the medium is still largely downloaded via static Really Simple Syndication (RSS) feeds.

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But the shift in consumption from downloads to streaming has opened the door for advances in data-driven podcast advertising, and the company is moving beyond these constraints to reimagine what is possible for this uniquely powerful and intimate medium.

With this technology, Spotify is offering the intimacy, quality and efficacy of traditional podcast ads with the precision and transparency of modern-day digital marketing. (IANS)