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Home Service news

Spotify Sees Subscriber Growth from iOS Payment Changes

Akinola Ajibola by Akinola Ajibola
May 22, 2025
in Service news
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Recently, the App Store Guidelines were changed, and Spotify was among the first businesses to use them. The business quickly released an updated version of its app that includes links that facilitate Spotify Premium subscriptions through third-party payment methods.

Spotify claims that its iOS app’s ability to send users to external, third-party payment links has already increased revenue in a quantifiable rise in Premium subscriber conversions. Spotify says its internal data shows that its recent update allowing web payments has led to “a significant increase in iOS users upgrading to a Premium subscription.” The company filed a new amicus brief this week in support of Epic Games in its ongoing legal battle with Apple over external payments on the App Store.

Apple was compelled to finally permit U.S. app developers to point their users to alternative payment methods within their iOS apps without having to pay Apple’s commission, just days after the U.S. The District Court in Northern California decided in favour of Fortnite developer Epic Games in the case involving external payments.

U.S. iOS app developers now have the ability to inform their clients about web billing choices and whether direct payment offers a discount.

In order to benefit from the new policy, Spotify was among the first to upgrade its iOS app. Customers may now buy audiobooks directly from the upgraded version, which also tells them how much memberships cost and directs them to the website for purchase.

According to Spotify’s latest filing, the outcomes have been generally favourable.

According to the filing, “developers and, more importantly, consumers have benefited greatly from the 2025 Order.” According to Spotify’s internal data, a considerable rise in iOS customers switching to a premium version subscription has already been brought about by the company’s iOS app improvements. Additionally, new product advancements made feasible by Apple’s compliance might not have been conceivable in the absence of the injunction.

According to Spotify: Apple asserts that the 2025 Order hurts it alone and does not help the general public in any way. This is incorrect. Through the 2025 Order, developers and, more significantly, consumers have benefited greatly from Apple’s long-overdue compliance with the Injunction. Internal data from Spotify indicates that a considerable rise in iOS customers upgrading to a Premium subscription has already been brought about by the company’s iOS app improvements. Additionally, new product advancements made feasible by Apple’s compliance would not have been conceivable in the absence of the injunction.

The business goes on to say that it is certain the iOS app’s modifications are to blame for this rise: “The rate of conversions from the Free-tier service to the Premium-tier service has stayed relatively constant on Android in the two weeks since Spotify updated its iOS app in compliance with the 2025 Order, while conversion among iOS users has significantly increased.” This strongly implies that Apple’s complete compliance with the injunction, made possible by the 2025 Order, is the reason for the increase.

Spotify said that by providing details about costs and a link to a payment page, its updated “Premium Destination Page” in its iOS app instructs free users on how to subscribe to a paid subscription. Spotify claims to have noticed the modifications’ immediate effects since introducing the link with pricing details.

Spotify claims that in the two weeks since the new page went online, the number of users switching from the free to the Premium tier has stayed “relatively constant” on Android, where the service can already provide basic pricing details.

According to the firm, the revenue conversion rate among iOS users has significantly increased in the meanwhile.

The 2025 Order, according to Spotify, “strongly indicates the spike is as a result of Apple fully complying with the Injunction.” Additionally, the business notes that barely three days after the new product alternatives were introduced, it is already starting to notice an impact on audiobook sales.

When contacted for comment, Spotify declined to provide precise figures pertaining to the hikes.

In an effort to combat the injunction that disrupted its U.S. App Store business, Apple has joined Microsoft and other companies in submitting a brief in favour of Epic Games.

Until all legal issues are resolved, Apple does not wish to abide by the court’s ruling, which it is currently challenging.

For the exact same reason, it also attempted to prevent Epic Games’ Fortnite from being available in the App Store; however, the judge compelled Apple to either permit the game to be re-released in the App Store or make a court appearance to clarify why Apple was not complying with the decision.

After a five-year break, Fortnite returned to the U.S. App Store on Tuesday.

The U.S. Court of Appeals for the Ninth Circuit is now hearing the dispute between Apple and Epic. In order to go back to its previous policy while its appeal was pending, Apple filed an Emergency Motion. The court declined to grant the motion, stating that the panel of judges would make a decision on the matter “due course” after following the default briefing schedule.

Following the issuance of an injunction in its legal dispute with Epic Games, Apple was compelled to modify its App Store Guidelines. Judge Yvonne Gonzalez Rogers prohibited Apple from imposing commissions or preventing developers from directing users to payment options other than the App Store.

The most recent version of the Spotify app for iOS provides users with a link to subscribe via Safari along with pricing and promotional data. Additionally, buying audiobooks through the app is now simpler.

Apple has asked for the first injunction to be paused. Additionally, it is legally contesting that ruling.

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Akinola Ajibola

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