[HN Gopher] Spotify and Google Announce User Choice Billing
       ___________________________________________________________________
        
       Spotify and Google Announce User Choice Billing
        
       Author : laminarflow
       Score  : 210 points
       Date   : 2022-03-23 20:11 UTC (2 hours ago)
        
 (HTM) web link (newsroom.spotify.com)
 (TXT) w3m dump (newsroom.spotify.com)
        
       | gumby wrote:
       | I do see one potential customer benefit: rather than increasing
       | your attack surface by giving _two_ companies your CC info you
       | just give one (google). In theory Google is going to have more
       | security than a bunch of smaller companies.
       | 
       | I use Apple Pay whenever possible for this precise reason. I
       | don't want to trust Target with my CC info.
       | 
       | Of course since under this scheme the company I'd be sharing my
       | card info with is the largest dossier assembling company in the
       | world, so I wouldn't be comfortable with it. But presumably they
       | will collect the info anyway (even though they aren't subject to
       | the same regulation as the credit bureaux or credit card
       | networks), so perhaps going directly through them doesn't make
       | things worse and at least eliminates one risk (spotify
       | themselves).
        
         | [deleted]
        
         | [deleted]
        
       | obert wrote:
       | Imagine if AWS, Azure, Gcloud were charging for your VMs a % of
       | your business revenue... AppStores are services, they should have
       | a fixed price like any other service, and that can cover also
       | variable costs like cents per download, cents per review, etc
        
       | xwowsersx wrote:
       | Why do/should I, as a Spotify subscriber, care about this at all?
       | I don't understand why there's so much fanfare around this. I
       | feel like I'm missing something basic here...
        
         | drbacon wrote:
         | I actually don't think of this as a consumer issue at all. You
         | probably shouldn't care, but I can see why some consumers might
         | care (e.g. how many entities have their credit card on file,
         | concerns about privacy, a desire to allocate as much money as
         | possible to artists...).
         | 
         | I think of this as a developer issue. There's good money being
         | the middle man for transactions. Did consumers really care
         | about the Epic/Apple IAP issue? Were there iOS users clamoring
         | to use Epic's payment platform? I never really heard the
         | consumer voice in that discussion. I did hear a lot of
         | developer voices that cared about their right to charge
         | consumers without Apple's 30% transaction cut.
        
         | alias_neo wrote:
         | I don't think there is much fanfare. Obviously Google and
         | Spotify want to make a big deal out of this for when regulators
         | come knocking, but as a Spotify user who pays directly to
         | Spotify outside of Play Store, this news is nothing more at a
         | mild irritation at them both patting each other's backs over
         | nothing.
        
       | hughrr wrote:
       | If this was Spotify vs Google I'd take Spotify.
       | 
       | If this was anything vs Apple I'd take Apple.
       | 
       | That's the ranking of trust I have as far as customer support
       | goes. It'll be a crap fest when match.com or some other atomic
       | level shyster markets their way into sounding more reputable than
       | they are.
        
         | alias_neo wrote:
         | I dislike Apple, and right now I wouldn't consider buying an
         | Apple product again (I had an iPhone 1 ahead of most people in
         | the UK). I spent the first ~5 years of my career developing on
         | Android and I still use Android.
         | 
         | I agree with your payment hierarchy 100%.
        
       | [deleted]
        
       | AndrewDucker wrote:
       | It has always seemed weird that if I use my Spotify account on my
       | Android phone, iPad, and desktop, who gets a cut of my money
       | depends on which one I use to set up billing.
        
         | conductr wrote:
         | I feel like only the one processing the transaction should be
         | paid to process the transaction. The usage part is no different
         | than if you used a free app on every device, they make nothing.
        
         | alias_neo wrote:
         | Agreed. I mostly use Spotify on a Raspberry Pi using Spotifyd
         | and a display driver I wrote myself, on Linux. Now who should
         | get a cut of my subscription? Do I get any of it?
         | 
         | For services which exist and function perfectly well outside of
         | the Google/Apple binary, why should they get any more than a
         | nominal fee for hosting the app download?
        
       | barbazoo wrote:
       | I was hoping this would mean I get to decide how much I pay
        
         | pishpash wrote:
         | That would be too much user choice.
        
       | cletus wrote:
       | This is smart and what Apple should've done. Apple is clearly
       | beholden to the massive cash cow that the App Store has become.
       | Apple's attempts at complying with various orders are that their
       | cut should be 27% and the payment processor can have 3%. That's
       | ridiculous and is going to get them into trouble.
       | 
       | You see this pattern repeatedly and people will bring up things
       | like the Pareto Principle or argue it's better to squeeze the
       | profits for as long as you can but ultimately some government or
       | court will take away your monopoly.
       | 
       | As someone in possession of such a monopoly it is always better
       | for you to control how that happens. Having it decided for you
       | could be truly disastrous. Any government investigation could
       | widen in scope to areas it otherwise wouldn't.
       | 
       | I predict App Store cuts will ultimately drop to a far more
       | reasonable 10-15% including payment processing or 5-10% without.
        
         | threeseed wrote:
         | App Store is 15% for developers making up $1 million a year.
         | 
         | And I know you think this is somehow unique to Apple but it
         | isn't. Channel costs have existed probably for centuries and
         | are present in every industry.
        
           | 10u152 wrote:
           | Yep.
           | 
           | Traditionally printers/publishers took 85-95% of revenue from
           | authors. Now perhaps you can argue that there's more costs
           | involved in printing that running an app store, but an app
           | store taking 30% sounds like a great deal in that context.
        
         | [deleted]
        
       | version_five wrote:
       | I have paid spotify but I can't remember how I got the all or
       | paid for it, other than there is not way it involved google
       | because I wouldn't do that.
       | 
       | Is this a compromise that gives google some in-app purchases that
       | used to go to spotify, or is it the opposite?
       | 
       | And I wonder if it means some kind of data sharing with google?
       | One whiff of google involvement in the actual experience or data
       | use would be the end of my spotify subscription. If it's just a
       | settlement about app store rules then I don't care.
        
         | eurasiantiger wrote:
         | You may want to analyze connections made by the Spotify
         | client...
        
       | olliej wrote:
       | Does this actually reduce the fees, or simply let Spotify make it
       | harder to cancel you subscription? I know on Mac+ios it's
       | controlled through centralized UI (which let me catch paramount
       | charging two subscription when they renamed some service).
        
       | lbotos wrote:
       | Is this "the enemy of my enemy is my friend" play where Google
       | makes Apple look bad in an effort to avoid some of the
       | regulations that might catch Apple?
       | 
       | I cant figure out why Google would want this otherwise?
        
         | WestCoastJustin wrote:
         | Spotify is a BIG Google Cloud customer with a $450 million
         | commit back in 2018 [0, 1, 2]. Companies want to keep these
         | types of customers obviously and will leverage other teams
         | internally to get a value add to get that renewal. This is
         | likely just another integration as they look to leverage the
         | relationship across bizdev, partner marketing, and sales teams,
         | internal engineering dogfood projects, discounts, etc. Lots of
         | this type of stuff isn't even targeted at competition just an
         | evolution of the relationship.
         | 
         | Normally how this type of stuff happens, is you'll have some
         | internal team working on a new initiative and looking for
         | headline customers, they will reach out to the sales teams, and
         | say, "hey, you are working with XYZ customer, want to float
         | this idea with them". It's a win-win.
         | 
         | So, having said all they. Google vs Apple, etc, and other large
         | competition politics almost never are on the radar of these
         | teams. They just want to help the customer win, get the sales
         | commissions, and make their internal product successful. It's
         | easy to look at this stuff from the outside and think there is
         | some big plan but the motivation down at the teams level has
         | nothing to do with that since they want mostly to look good on
         | perf reviews.
         | 
         | I have no knowledge of the internals here just talking from
         | experience from what I've seen.
         | 
         | [0] https://www.cnbc.com/2018/03/20/spotify-will-spend-
         | nearly-45...
         | 
         | [1] https://www.protocol.com/enterprise/spotify-google-cloud-
         | pla...
         | 
         | [2] https://cloud.google.com/customers/spotify
         | 
         | Note: I originally had Shopify here. The same strategy/tactics
         | apply.
        
           | kartayyar wrote:
           | The post is about Spotify, not Shopify.
        
           | DizzyDoo wrote:
           | I think you may have gotten mixed up between Shopify and
           | Spotify - this is an announcement by the latter, not the
           | former. They're spelled so similarly so it's an easy mistake
           | to make.
        
             | bberenberg wrote:
             | FYI it's still accurate:
             | https://cloud.google.com/customers/featured/spotify
        
           | awa wrote:
           | FYI The announcement is from *spotify not shopify
        
             | WestCoastJustin wrote:
             | Yeah, you're right. Same logic applied. Updated links to
             | the correct company.
        
           | Medowar wrote:
           | You seem to mix up Spotify and Shopify. The Announcement is
           | made by Spotify, you talk about Shopify. But interestingly,
           | your point still stands, as Spotify is also a big Google
           | Cloud customer.
        
           | joatmon-snoo wrote:
           | s/shopify/spotify/
           | 
           | https://cloud.google.com/customers/featured/spotify
        
         | dannyw wrote:
         | The EU has been looking into this for months now, and
         | statements made by the Commission have not been kind to Google.
         | 
         | I suspect Google expects an incoming loss.
        
         | lalos wrote:
         | Retaliation from all the iPhone privacy ads, modern
         | capitalistic warfare.
        
         | judge2020 wrote:
         | Google made the same decision as Apple when they removed
         | Fortnite in response to Epic Games completely bypassing the
         | store's in-app purchasing flow, thus losing their 30% revenue
         | cut, so the motivation is likely not 'to make Apple look bad'.
         | 
         | This is probably just a good show of faith to regulators while
         | Google still collects their percentage of subscription revenue
         | from Spotify on the backend.
        
           | phamilton wrote:
           | > percentage of subscription revenue from Spotify on the
           | backend
           | 
           | This is an advantage of Google vs Apple. Google has multiple
           | business relationships with Spotify. An increase in
           | advertising dollars, infrastructure spend on GCP, etc could
           | all offset the lost revenue for Google here.
        
       | smm11 wrote:
       | I thought at first it was "pay what you want," which I'd prefer
       | with Spotify.
       | 
       | I keep getting near-free SiriusXM deals, and with the integration
       | in my car, why not. Then I start Spotify after two weeks, and it
       | takes five minutes to load.
        
       | judge2020 wrote:
       | Spotify doesn't disclose their pay cut so I have to assume Google
       | is still getting their cut of revenue, maybe 25% with payment
       | processor fees taken into account instead of 30%, since they
       | surely wouldn't want to set a precedent of any digital content
       | app being able to not pay for the OS/platform by simply adding
       | their own payment method (otherwise Epic wouldn't have needed
       | their lawsuit).
        
       | fitzroy wrote:
       | The "Chief Freemium Business Officer" seems an odd choice for a
       | quote about consumer billing.
        
         | version_five wrote:
         | Doesn't freemium mean in-app purchases which would be subject
         | of a deal with the google app store?
        
         | TedDoesntTalk wrote:
         | I wonder how much work someone with that title has on a day-to-
         | day basis.
        
       | [deleted]
        
       | nostromo wrote:
       | Is the price the same for both?
       | 
       | It seems odd not to include this information.
        
       | paxys wrote:
       | Crazy that this new revolutionary "first of its kind" feature is
       | - letting the user pick between two payment processors.
        
         | chews wrote:
         | Basic choice for payments became a discount offering for Google
         | cloud use.... Total monopolistic behavior
        
           | judge2020 wrote:
           | While that's alluded to in some other comments there is 0
           | proof of this - it'd be a huge issue if the price for
           | choosing another payment processor (while still likely paying
           | Google their Store % cut on the backend) is being an
           | enterprise customer of a completely separate business unit.
        
         | drusepth wrote:
         | I don't understand how this is a "feature". Is the price
         | different, or the features gained different, or does it just
         | determine who ends up getting what % cut? I can't imagine most
         | people actually care whether Google or Spotify is getting a
         | bigger piece of the same price they're paying either way.
        
           | laurent92 wrote:
           | The conditions and trust are different. I personally believe
           | that letting Google have my credit card is allowing a kid
           | with no supervision to play with my life savings; While some
           | others will believe Google provides better guarantees than
           | Spotify when you want to unsubscribe. At least competition
           | will allow us to see "who's better" and what T&C customers
           | care about, and that's the important point.
        
             | maratc wrote:
             | It's not a choice of who's better; it's a choice of who's
             | not worse.
             | 
             | Given a choice of Apple vs. anything, I can't see myself
             | choosing anything over Apple.
        
         | 2OEH8eoCRo0 wrote:
         | Everybody says this then outraged users who hate choice appear.
        
         | [deleted]
        
       | simow wrote:
        
       | ocdtrekkie wrote:
       | > "Android has always been about openness and user choice," said
       | Sameer Samat, Vice President, Product Management at Google.
       | 
       | Oh **** off. Publish the Android MADA to the public, lol. Also,
       | reinstate Fortnite then?
       | 
       | Great, you cut a deal, can we not pretend that it's an openness
       | thing though? We know it's not.
        
       | jmacd wrote:
       | "Over the coming months, Spotify will work with Google's product
       | and engineering teams to build this new experience"
       | 
       | It's so absolutely bizarre to announce something at this stage. I
       | wonder what is prompting it.
        
         | nawgz wrote:
         | I don't know much about things, but I was immediately left with
         | the feeling that this was a Google action performed vis a vis
         | antitrust. Whether to strengthen a case against Apple or weaken
         | one against them or some other ball game entirely, I have no
         | clue.
        
         | extheat wrote:
         | It is a big and notable event in the middle of antitrust
         | investigations into Apple/Google by the US and the EU.
        
         | kenhwang wrote:
         | Pretty standard Google playbook these days.
         | 
         | Instead of building something and then cancelling it later when
         | it doesn't gain traction to get their PR win, they decide to
         | cash in on the PR win upfront with a big partnership
         | announcement, then cancel the product before building it if it
         | doesn't gain sufficient traction, thus saving on engineering
         | costs and streamlining the typical Google technical offering
         | lifecycle.
         | 
         | Behind the scenes, Google usually gives the partnering company
         | some pretty nice discounts. Usually no one does any engineering
         | until someone else sees the PR and also wants in on this
         | "exciting new feature" and they're the one actually beta
         | testing the product that they thought the announced companies
         | already used.
        
         | mnholt wrote:
         | To maximize the amount of media coverage this receives. In a
         | number of months they will announce that it's done.
        
           | [deleted]
        
       | javert wrote:
       | > Spotify has been publicly advocating for platform fairness
       | 
       | Big companies arguing for "fairness" is absurd and in the long
       | run it will blow up in their faces.
       | 
       | In a society that prioritizes "fairness" over capitalism, Spotify
       | and Google are not allowed to exist.
        
       | ggoo wrote:
       | Seems like a step towards non-vendor locked payments _if you're
       | big enough_. This future does not look so bright.
        
       | simow wrote:
        
         | [deleted]
        
       | criddell wrote:
       | > represents a first-of-its-kind option in payment choice and
       | offers opportunities for both consumers and developers
       | 
       | What is the opportunity here? For consumers is it that you can
       | pick who you pay? That doesn't sound like much of an opportunity
       | to me.
       | 
       | What is the opportunity for developers?
        
         | librish wrote:
         | Presumably that they'll see the difference in price.
        
           | syspec wrote:
           | Hah! As if... If there is a reduction in price, it will be
           | temporary so they can get users to switch.
           | 
           | After a year or two there will be a PR announcement:
           | 
           | Congratulations to us! Today we're announcing going forward
           | all plans will be priced exactly the same. This means whether
           | you pay via Google or Spotify, you no longer need to worry
           | about confusing pricing options because all plans will have
           | one single price.
           | 
           | As an additional benefit users who pay via Spotify will get a
           | limited edition Snoop Dogg / Jaden Smith / Billy Ray Cyrus
           | NFT usable in Fortnite while logged into Spotify Pro Max
        
         | onelovetwo wrote:
         | So there is no user choice, technically just a lesser
         | commission. Nothing stopping Google from upping this 5% "fee"
         | to 10% when they feel like it.
         | 
         | This is still a loss for devs, I was hoping we can just rip of
         | Google garbage payment system and use something like Stripe, or
         | whatever new companies that would've emerged to fill our needs.
         | 
         | Obviously they'll give a sweet deal to massive companies but
         | not the small devs.
        
           | kyrra wrote:
           | Googler, opinions are my own.
           | 
           | What issues do you have with the Google payments system? With
           | the stripe bring that Google does not already have? (Outside
           | the fee issue most people raise)
        
         | judge2020 wrote:
         | The opportunity for developers (read: the investors and C-level
         | management at companies) being able to save marginally on their
         | cut to Google by allowing the user to select non-Google Play
         | billing. However, I wholly imagine Google agreed to this
         | because they'll still get their cut of subscription revenue on
         | the backend, so Google might only take 25% instead of 30% when
         | the app doesn't use Play Store billing.
        
         | orangepanda wrote:
         | > What is the opportunity for developers?
         | 
         | An opportunity to make unsubscribing a more engaging activity
        
           | echelon wrote:
           | It's the opportunity to take more of your revenue as margin,
           | plain and simple.
           | 
           | Contrary to your suggestion, I would argue that most
           | businesses do not want to predatorily extract money from
           | unwilling customers. It's typically the old, calcified
           | businesses that do not innovate (gyms, cable companies, etc.)
           | that engage in this behavior.
           | 
           | I want more margin so I can hire more engineers and change
           | the world faster.
           | 
           | Google probably sees regulatory pressure writing on the wall,
           | and by doing this they're building evidence that they haven't
           | built a mobile computing monopoly or are backing away from it
           | (insofar as running executions on your customer's devices
           | used to be free in the desktop computing world where two
           | corporations didn't tax all of innovation).
           | 
           | Also, it's a shot against Apple, who is definitely the more
           | egregious of the two.
           | 
           | This is all around good. There might be a company or two that
           | abuse the system, but that's easily dealt with. In an open
           | app ecosystem, you still have measures in place to correct
           | the bad actors.
        
             | threeseed wrote:
             | > I would argue that most businesses do not want to
             | predatorily extract money from unwilling customers
             | 
             | Doesn't matter. There are enough of them to cause headaches
             | for many people on a regular basis.
        
             | usrusr wrote:
             | > I would argue that most businesses do not want to
             | predatorily extract money from unwilling customers
             | 
             | They'd all rather receive the money from happy customers
             | enthusiastically paying because they love the service so
             | much, but if the third option is no money they all know
             | what their second choice would be.
        
             | matthewmacleod wrote:
             | _I would argue that most businesses do not want to
             | predatorily extract money from unwilling customers_
             | 
             | I find it difficult to agree with this - and I'm not just
             | being scattergun cynical. I quite literally think that the
             | vast majority of consumer-facing businesses work as hard as
             | they can to juice more money out of their customers through
             | obfuscation.
             | 
             | It's easy to argue that this is a benefit for developers,
             | or open ecosystems, or just plain principles or whatever,
             | because that's all almost certainly true. But it's also
             | probably virtually certainly no better for users.
        
       | aketchum wrote:
       | I just want to point out that Spotify as a position with the
       | title 'Chief Freemium Business Officer'. Is there also a 'Chief
       | Subscription Business Officer'?
        
       | kevin_thibedeau wrote:
       | I wonder how much Google sweetened the deal. I can't imagine
       | Spotify accepted a standard 15% cut.
        
       | civilized wrote:
       | This is one of the most boring and insignificant things I've ever
       | seen on HN. The amount of intense discussion it's getting is very
       | funny.
       | 
       | I would consider it a _much_ bigger event if Costco announced
       | they 'd take American Express.
       | 
       | (No judgment against anyone who finds this event fascinating! You
       | all clearly know more than me...)
        
       | bogwog wrote:
       | Google sees the writing on the wall. Their billing monopoly is
       | under threat, and is probably not going to last forever.
       | 
       | This situation looks like Google allowed Spotify to add their own
       | payment system with some terms. The obvious one is that they need
       | to keep Google's payment system alongside their own. A less
       | obvious (but IMO likely) requirement may be that Spotify cannot
       | offer a much lower price through their billing system to
       | incentivize users to switch (100% assumption here).
       | 
       | From the outside, this looks like a pro-consumer move: consumers
       | get more choices (even if the prices are the same). But the
       | reality is (probably; I'm just assuming here) that Google still
       | has the power to shove their billing system down developers'
       | throats, since there aren't yet any laws or rulings to prevent
       | it.
       | 
       | So even though the writing in this press release makes it seem
       | like a pro-consumer move, I hope it doesn't take any momentum
       | away from all of the antitrust lawsuits. Google's (and Apple's)
       | monopolies need to end. In an ideal world, Spotify would add
       | Google billing (and others) as options to attract more customers,
       | not because Google is forcing them to.
        
         | darkwater wrote:
         | And Spotify will probably also get less discounts in GCP to
         | compensate part of that. I'm totally speculating, just to be
         | clear.
        
           | Traster wrote:
           | Why on earth would Spotify be getting a discount on GCP?
        
             | bowmessage wrote:
             | Bulk/multi-year commitments to a single cloud provider
             | often come with steep discounts.
        
       | nerdjon wrote:
       | As a user, why would I choose this?
       | 
       | I only see a benefit to developers for this, but from a user
       | prospective going with another system is a downgrade.
       | 
       | Assuming google works like Apple (correct me if I am wrong),
       | disabling a subscription should be able to happen from a central
       | location with a click or 2.
       | 
       | If I instead go with the billing through a company not only do
       | they now have my credit card information, but I have to go
       | through them to cancel. Meaning they can send me through screen
       | after screen trying to convince me to stay (dark pattern) or even
       | worse forcing me to call to cancel.
       | 
       | As a user, if you want to offer this fine. But as long as the
       | ability to subscribe through Google or Apple is not removed I
       | will be fine. But if this starts a trend of more and more apps
       | having their own billing that then uses dark patterns to keep me
       | subscribed... I will just end up spending less money on
       | subscriptions than I currently do, and I have quite a few
       | subscriptions.
        
         | olau wrote:
         | I know that a consumptionist attitude is popular these days,
         | but as a user of something like Spotify I would surely prefer
         | as much as possible of my monetary contribution ending up with
         | Spotify and the musicians instead of in the hands of a company
         | controlling the market place.
         | 
         | To the people who think the exorbitant fees are okay: Imagine a
         | world with no cash. Now the payment card companies decide they
         | want 30% of all transactions. You think that would be
         | reasonable?
         | 
         | The only reason the phone OS companies get away with it is lack
         | of real competition. The regulatory environment is very slow in
         | catching up - it's not more than a few years ago that the EU
         | finally hit the payment card companies.
         | 
         | And yes, the EU also has something to say when it comes to dark
         | subscription cancelling patterns.
        
           | endgame wrote:
           | > To the people who think the exorbitant fees are okay:
           | Imagine a world with no cash. Now the payment card companies
           | decide they want 30% of all transactions. You think that
           | would be reasonable?
           | 
           | Since we are heading to a world with no cash, what's stopping
           | the card companies from doing that after there's no way back?
           | This is why I use cash as much as possible - to delay that
           | day.
        
             | applecrazy wrote:
             | > This is why I use cash as much as possible - to delay
             | that day.
             | 
             | A big thing discouraging me from using cash is how
             | suspicious people are of you when you pay in cash. I've
             | definitely gotten weird looks from cashiers when doing so,
             | especially when you pay in larger bills (like $100).
        
               | Audiophilip wrote:
               | Why would I care what a cashier _thinks_ of me when I pay
               | for products with common legal tender? It's a completely
               | normal means of transaction in exchange for products and
               | services.
        
             | KptMarchewa wrote:
             | EU capped the rate to 0.3% for credit cards. That's also
             | why there are no US cashback style deals or those weird
             | point programs.
        
           | altairprime wrote:
           | I would trust Spotify but not NYTimes, in this model, so
           | perhaps consider a more hostile example than Spotify as well.
        
           | Shank wrote:
           | > To the people who think the exorbitant fees are okay:
           | Imagine a world with no cash. Now the payment card companies
           | decide they want 30% of all transactions. You think that
           | would be reasonable?
           | 
           | Just so that we're talking on equal terms here, card
           | processors and networks solve a massive amount of problems
           | that existed with cash. Pre-card, many stores setup credit
           | accounts with individuals, had book keeping practices to deal
           | with, and had to chase down credit lines they themselves
           | offered. Even with debit cards, card networks facilitate the
           | ability to automatically move money between parties and give
           | customers the ability to dispute/chargeback fraudulent
           | transactions easily. If you physically hand a merchant cash,
           | you can't claw that back without a legal process, whereas
           | you're afforded protections by the card network.
           | 
           | But the 30% cut is completely different from card processors.
           | Of the 30% to Google Play or to Apple, a small fraction
           | (2.9%ish) is actually the card overhead. The rest is split
           | between pure profit, infrastructure, and whatever else gets
           | tacked on.
           | 
           | Cards definitely offer important things to facilitate
           | transactions that are objectively better than a pure cash
           | world for most people. But it's important to call out crazy
           | cash grabs like 30%, which is unheard of even in the payment
           | network world.
        
             | bmhin wrote:
             | Choice is the real thing though more than actual value add.
             | I feel like I see it less now, but recall seeing how
             | vendors would only accept certain cards and not others
             | (frequently, not American Express) which was as far as I
             | know stemming mostly from higher fees they didn't want to
             | pay. Similarly, places would not accept credit cards at all
             | if they had razor margins and didn't want to eat the fee. I
             | still know of a few places like that, often with an ATM
             | near by so the customer can pay a fee if they are caught
             | unaware.
             | 
             | That was the thing though, a business could decline to
             | accept particular cards or cards at all and still perform
             | transactions. That "opportunity" has generally not extended
             | to the app store world in a practical way. If you want to
             | play, they had their cut and customers and vendors didn't
             | have a whole lot of say in what was reasonable. There is no
             | simple default transaction (like cash) that they were
             | trying to out compete.
        
             | Sesse__ wrote:
             | Even your 2.9% number is probably too high. Perhaps for
             | AmEx or in super-high-risk situations you need to pay that
             | kind of fees, but for regular MC/VISA in developed
             | countries, even a medium-sized business can get below 1%.
             | Large companies, like Apple, can almost certainly get it
             | lower than that.
             | 
             | Source: Involved in multiple such deals over the years.
        
           | judge2020 wrote:
           | I think you're mistaken - why would Google have agreed to
           | this if they gave up their cut of the subscription revenue?
           | They're surely making some money on the backed still,
           | possibly just 3% less than they were (to account for
           | Spotify's processor fees).
        
           | alkonaut wrote:
           | Absolutely. I want 100% of the money to go to Spotify _and_ I
           | want a centralized one-click cancel, that looks the same for
           | all subscriptions.
           | 
           | That's an unlikely combination. So the viable alternative is
           | a middle ground. A central app store and subscription
           | management takes a cut/adds a tax. I'm ready to pay say 1% or
           | 2% for that service.
        
             | alanchen wrote:
             | I think https://privacy.com is close to that. You get a
             | virtual credit card number for every single service that
             | you sign up for, and you can simply disable them in a
             | centralized place.
             | 
             | It works on the web but it is still a hassle to use on
             | mobile. I imagine Apple can potentially do this using Apple
             | Card, but I don't think this is going to happen any time
             | soon.
        
             | falcolas wrote:
             | I'd rather 100% of the money go to the artists, personally.
             | It is possible in many cases, but not with Spotify (or
             | Google, Apple, etc). Middlemen want their cut, and Spotify
             | cuts as deeply as Apple (google, steam, microsoft, sony,
             | etc) does.
        
               | dmitriid wrote:
               | > I'd rather 100% of the money go to the artists,
               | personally. It is possible in many cases, but not with
               | Spotify (or Google, Apple, etc). Middlemen want their
               | cut, and Spotify cuts as deeply
               | 
               | Never ever in all these accusations do people mention The
               | Big Four [1]. It's always Apple to blame. And Spotify.
               | And Deezer. And Pandora. And...
               | 
               | Even though music distributors control all f the market,
               | collect all the royalties, and pay artists peanuts. Does
               | Spotify pay artists directly? No, it can't do that. It
               | pays the license holders which are, in 99% of the cases
               | [1]
               | 
               | [1] https://en.wikipedia.org/wiki/Music_industry#Consolid
               | ation
               | 
               |  _Edit:_ it 's worse now, it's Big Three. They control
               | 88.5% of the market, but by popularity of music that is
               | listened to on streaming platforms, it's likely closer to
               | 100%.
        
               | [deleted]
        
               | falcolas wrote:
               | This is where I shrug my shoulders and say "Why not
               | [blame] both?"
               | 
               | It can be that Apple, Spotify, and Google can all be
               | screwing over creators in conjunction with their
               | publishers.
               | 
               | That said, not all musicians on Spotify go through
               | publishers.
        
               | dmitriid wrote:
               | > This is where I shrug my shoulders and say "Why not
               | [blame] both?"
               | 
               | I've yet to see any of these discussions to blame both.
               | And your own comment literally never mentions the Big
               | Three.
               | 
               | > can all be screwing over creators in conjunction with
               | their publishers.
               | 
               | I prefer not to wade in to conspiracy territory. Apple
               | may have power over the industry, but they are an
               | outlier. The rest do whatever the industry tels them to.
               | 
               | Quote, [1]. Emphasis mine
               | 
               | --- start quote ---
               | 
               | Spotify primarily makes money for music from two sources
               | -- from Spotify Premium subscribers as well as from
               | advertisers on Spotify's free tier. _Roughly  2/3  of
               | this money is paid out to music rights holders._
               | 
               | --- end quote ---
               | 
               | Guess who are the rights holders. They get 60-65% percent
               | of Spotify's _revenue_ (not profit). Care to ask _them_
               | where this money goes? No one ever dares to.
               | 
               | > That said, not all musicians on Spotify go through
               | publishers.
               | 
               | It's either publishers or indie aggregators (two or three
               | of them). Spotify doesn't pay artists directly. If it
               | tried to do that, the big publishers would immediately
               | pull their catalogs. And the vast majority of popular
               | music on the platform is likely to come from big
               | publishers, not from indie aggregators.
               | 
               | [1] https://loudandclear.byspotify.com/?question=how-do-
               | artists-...
        
               | falcolas wrote:
               | > I've yet to see any of these discussions to blame both.
               | 
               | Perhaps because they are outside the context of this
               | discussion? For the purposes of this discussion, they are
               | a constant, no matter what Spotify or Google does.
               | 
               | > And your own comment literally never mentions the Big
               | Three.
               | 
               | I added a caveat to my "buying from the musicians
               | directly" exactly because of publishers.
               | 
               | > Apple may have power over the industry, but they are an
               | outlier.
               | 
               | Not exactly - they charge the same percentage as the
               | other players in this space that I mentioned. No
               | conspiracy theories required to point this out.
               | 
               | > Care to ask them where this money goes? No one ever
               | dares to.
               | 
               | Sure, in articles about music producers (I recall more
               | than a few hitting HN over the years, especially when
               | Taylor Swift was raising a ruckus about them and
               | Spotify).
               | 
               | > And the vast majority of popular music on the platform
               | is likely to come from big publishers, not from indie
               | aggregators.
               | 
               | I don't believe anybody is disputing that.
        
             | brimble wrote:
             | I think the norm that everyone seems to slowly be settling
             | on, of 15% for: 1) hosting the program itself, 2)
             | displaying in the store, 3) payments and subscriptions
             | including figuring out local taxes and CC fees and such, 4)
             | various other services (push messages, for example), is
             | pretty damn reasonable. 30% is clearly too high, but
             | somewhere around 20% it actually starts to look like not-a-
             | rip-off.
        
           | verisimi wrote:
           | > Imagine a world with no cash.
           | 
           | I'm in :)
        
           | Wowfunhappy wrote:
           | I don't think Spotify is the best example here, since I'm not
           | particularly convinced that more cash going to them would end
           | up in the hands of musicians.
           | 
           | But certainly, if I subscribe to The Economist I want as much
           | of my money as possible to go to the journalists who actually
           | write the content.
        
             | Erwin wrote:
             | Spotify is public and you can see most of their numbers --
             | the Cost of Revenue for 2021 was 7 billion EUR on 9.6 in
             | revenue. The cost is said to be mostly the royalties though
             | it would include paying the many millions to some
             | podcasters.
             | 
             | The ad-supported users outnumbers premium users (236
             | million to 180 million) but bring in only 1/6th the
             | revenue. So that's a factor depressing the payout per
             | stream.
             | 
             | https://investors.spotify.com/financials/press-release-
             | detai...
        
               | falcolas wrote:
               | Or phrased slightly differently, Spotify takes 30% of
               | revenue generated by selling access to artists' songs.
        
               | [deleted]
        
               | stormbrew wrote:
               | It's probably not really possible to even estimate how
               | much of actual cashflow is attributable to user income
               | vs. artist payout from GAAP-based financial statements.
               | And their cashflow statements are not particularly useful
               | either. I'm sure a lot of nice things are "said to be,"
               | but if spotify were particularly proud of how much money
               | they let through to artists I think they'd be touting it
               | in more concrete ways.
               | 
               | Anyways, this is a bit like looking at Walmart's COGS and
               | declaring that they've never screwed over a supplier by
               | forcing them to cut prices to the bone.
        
           | taf2 wrote:
           | Pretty confident in the US since at least 2002 - after aol,
           | sprint and others got in big trouble it's been super illegal
           | to not allow people to cancel
        
           | nerdjon wrote:
           | Then let's focus on lowering that percent instead of making
           | the situation worse for consumers.
           | 
           | However to be clear, that percent is in the same area that
           | game consoles and I believe Steam (someone correct me?)
           | charge. And we accept that. When the 30% rule for the App
           | Store came down, our smart phones were basically the same as
           | a game console. Most people did not expect these devices to
           | become the central part of all of our lives. At least not in
           | this way.
           | 
           | Now that it has, than sure the percent needs to be lowered
           | and I am not arguing that (I said in another comment the 30%
           | is worth it for me personally but doesn't mean I am ok with
           | it).
        
             | rusk wrote:
             | > let's focus on lowering that percent
             | 
             | A noble position but it seems to have been going other way
             | unfortunately. Not sure how you would do that ... further
             | regulation or introducing artificial competition in the
             | market. I think the most pro-business approach is to quash
             | the monopoly and open up the market.
        
               | enos_feedler wrote:
               | Going the other way? The fee started at 30% and has only
               | gone down from there (ex. 15% for subs active > 1 yr). I
               | believe the fees will fragment further and give
               | developers the option of paying less but receiving less
               | too. For example: You can pay 5% less but you will only
               | show up in app store search results. Or something to this
               | effect. We will never get blanket 30% take rates again.
               | It was a simplification when the market was early
        
             | tick_tock_tick wrote:
             | > than sure the percent needs to be lowered and I am not
             | arguing that
             | 
             | Yes to 0% and any percentage of revenue should be made
             | illegal. Google and Apple can charge whatever fixed values
             | they want or even charge based on a wide variety of vectors
             | but a % of revenue should be explicitly illegal that kind
             | of blatant rent seeking is a quintessential example of
             | something the government needs to stamp out.
        
               | olliej wrote:
               | Apple provides software updates for devices for years
               | after they been paid for. Apple and google both
               | providedthe CDN bandwidth for incredibly popular "free"
               | software for which they do not receive a penny.
               | 
               | The revenue from paid services covers that support.
               | 
               | Would I prefer the cut was lower, but at the same time
               | the 15% (for most)-30% cut seems to match every other
               | platform
        
               | mynameisvlad wrote:
               | Apple and Google are providing a service, so why exactly
               | should they not get a cut of revenue?
               | 
               | To be clear, 30% is too much, but aside from payment
               | handling and taking on fraud risk as a result of that
               | (3-4% is generally the industry standard for card not
               | present transactions), they provide a subscription
               | management/payment API for IAPs, as well as app packaging
               | and distribution, reviews, etc.
               | 
               | That certainly is worth more than 0%.
        
               | munk-a wrote:
               | Isn't the fraud risk still generally born by credit card
               | companies at the end of the day?
               | 
               | I think we can legitimately talk about the costs of
               | maintaining the app-store as a marketplace, and we can
               | talk about the future costs of providing updates free of
               | charge in perpetuity and orchestrating the infrastructure
               | to host those various downloads... but that's about where
               | their service offering ends. App review is a joke, the
               | rating systems on both platforms as absolute trash and
               | often gamed by publishers (remember Uber's in app prompt
               | about how many stars you'd give them that forwarded you
               | to the app-store if you gave them 5 and otherwise just
               | offered you an internal complaint form if you gave them
               | anything else? Everyone does that).
               | 
               | I'd question whether Apple and Google are really
               | providing a service or just exploiting a captive market.
        
               | lxgr wrote:
               | > Isn't the fraud risk still generally born by credit
               | card companies at the end of the day?
               | 
               | No - for online/e-commerce payments, the liability is
               | generally with the merchant, not the card issuing bank.
               | 
               | If it was about risk/fraud, debit cards would be an
               | economic non-starter, as their interchange is capped to
               | 0.05% + 0.24$ for almost all issuers.
               | 
               | EU issuers also get by (probably not too comfortably so,
               | but still) with the recently introduced interchange cap
               | of 0.3%/0.2%.
        
               | mynameisvlad wrote:
               | > Isn't the fraud risk still generally born by credit
               | card companies at the end of the day?
               | 
               | Absolutely not, the bank initiates a chargeback, which
               | the payment processing network directs back to the one
               | who handled the payments. They generally are then tasked
               | with "proving" the purchase is authorized. Enough
               | chargebacks, even fraudulent ones, and the payment
               | provider cuts ties with you (although, at Google scale, I
               | don't see this happening) as you're too great a risk.
               | 
               | > App review is a joke, the rating systems on both
               | platforms as absolute trash and often gamed by publishers
               | (remember Uber's in app prompt about how many stars you'd
               | give them that forwarded you to the app-store if you gave
               | them 5 and otherwise just offered you an internal
               | complaint form if you gave them anything else? Everyone
               | does that).
               | 
               | The implementation being a joke doesn't mean it's not a
               | service with COGS that need to be accounted for.
        
               | desiarnezjr wrote:
               | Nope. All fraud and chargebacks go back to the
               | merchant/seller. The processor will immediately hold
               | those funds in question pending a dispute or resolution
               | around the fraud or chargeback.
               | 
               | On top of that there's a hefty fee for any fraud or
               | chargeback that's not refundable even if it's resolved in
               | your favor. Usually in the range of $40 per instance.
        
               | morepork wrote:
               | Apple and Google (and others) also allow loading credit
               | using physical cards that you purchase at retail stores.
               | I believe the stores get around a 5-10% margin on these,
               | i.e. you buy a $100 gift card, and the store only pays
               | Apple/Google $90-95.
               | 
               | There is a definite cost to all these so 0% is
               | unreasonable. Epic is trying to be the "good" games
               | distribution store and they reportedly take a 12% cut.
               | Something around there, maybe down to 10% would be a
               | reasonable place for Apple/Google to be.
        
               | munk-a wrote:
               | Unfortunately Epic can't honestly comment on what cut
               | they're taking while their storefront loses immense
               | amounts of money[1] - I agree that a lower percentage is
               | probably a lot more reasonable but I don't think EGS can
               | serve as that example.
               | 
               | 1. https://www.pcgamer.com/epic-has-sunk-dollar500m-into-
               | the-ep...
        
               | kitsunesoba wrote:
               | Doesn't this ignore the reality that a service with many
               | of subscribers puts dramatically more strain on
               | marketplace systems than a service with only a few
               | subscribers?
               | 
               | For example, a smalltime dev isn't going to see hardly
               | any refunds, but a dev on the scale of Epic Games is
               | going to be seeing something on the order of tens or
               | hundreds per minute. Should that not be accounted for?
               | 
               | That said, this could be accomplished with tiered fixed
               | fees. An indie dev would probably land in a low rung
               | where costs are tiny, where a triple-A game studio would
               | get charged substantially more.
        
             | nightski wrote:
             | Steam lets developers sell keys without the tax using their
             | own systems. In addition to this you are allowed to list
             | your games on other storefronts for PC.
        
               | lxgr wrote:
               | Do you know if there is any revenue sharing happening in
               | the background in that model?
        
             | lxgr wrote:
             | > Then let's focus on lowering that percent instead of
             | making the situation worse for consumers.
             | 
             | The only viable path towards finding a fair price for this
             | service (apparently deemed essential and basically a steal
             | by Apple and Google, but worth less than nothing by many
             | app developers) would seem to be competition.
             | 
             | Why not offer both, explicitly allowing for different
             | prices, special deals only for non-store subscriptions
             | etc.?
        
             | falcolas wrote:
             | So, Spotify also reportedly takes 30% of the revenue before
             | paying the creators.
             | 
             | This isn't an Apple/Google/Spotify thing, it's a service
             | thing.
        
               | mr_aks wrote:
               | I don't understand this argument. Spotify is a service
               | connecting listeners to the artists and infrastructure
               | and development of said service has its cost whereas
               | Google/Apple charge fees for the app store which Spotify
               | subscription does not require.
        
               | falcolas wrote:
               | So, Spotify is allowed to charge 30% for access to the
               | market it has created, but Google and Apple are not?
               | 
               | An app store costs money too - the creation and
               | maintenance of the billing platform/API, bandwidth, human
               | curation, cross-device storage of saved configurations,
               | user acquisition, etc.
               | 
               | What makes musicians so different from software
               | developers that it's perfectly acceptable for Spotify to
               | take such a large share of the revenue their music has
               | earned?
               | 
               | (To make my own position clear, I don't think any of them
               | deserve 30%)
        
               | thow-58d4e8b wrote:
               | The problem with this line of argumentation is - why
               | single out phone OS providers as the only link in the
               | very long supply chain that deserves a cut?
               | 
               | Why not internet provider? Verizon's infrastructure costs
               | money, too - should they also be eligible for a 30% tax?
               | 
               | The data will be transmitted through Cisco routers or
               | Nokia's BTS - it costs a lot of R&D to develop those
               | 
               | What about the phone manufacturer - Xiaomi or Samsung
               | would definitely not reject their fair share
               | 
               | None of this would happen without electricity - power
               | transmission companies deserve a portion
               | 
               | There really isn't a coherent moral argument in favor of
               | the current status quo - it's simply about market power,
               | nothing else
        
               | FredPret wrote:
               | Apple/Google app stores are a service connecting users to
               | app creators, and all the points about Spotify also apply
               | to Apple and Google. In the case of Apple, they literally
               | created the entire market, from the CPUs all the way up.
               | 
               | If 30% is too much, publish your content as a web app. If
               | you want to play in the walled garden, pay the cover
               | charge.
        
               | munk-a wrote:
               | I think the biggest difference is that Spotify isn't a
               | monopoly at the end of the day - it's a popular service.
               | A lot of people still use different methods to listen to
               | music like YouTube, iTunes, bandcamp and a plethora of
               | others. If you, as a band, want to make money on your
               | music you aren't required to do business through spotify,
               | it's a choice that most people make because it's free
               | money.
               | 
               | On the other hand if you want to write an app for a
               | mobile device you're, realistically, either going to
               | write it for Android or iOS. On the Android side you can
               | distribute it as an apk assuming you can handle the cost
               | of writing self-updating code - but on the iOS side
               | you're hooped. Mobile devices are a part of modern life,
               | the fact that one company dominates the market (and
               | another company takes the remainder) leaves the market
               | extremely unhealthy.
        
               | falcolas wrote:
               | Google Play, which charges 30%, is not a monopoly either.
               | Nor is Steam. The Microsoft/Sony/Nintendo scene is a bit
               | less clear, but they charge 30% too.
               | 
               | Musicians have about the same freedom in this respect as
               | any application developer, practically speaking. AKA,
               | they're just as exploited (if not moreso, see other
               | comments about how musicians are also being screwed over
               | by studios).
        
             | michaelmrose wrote:
             | You can only lower the percent with at least the credible
             | threat of competition. Would you pay $13 for a $10 service
             | for the privilege of doing it through the play store?
             | 
             | Likewise would you be equally OK if the dollar figures
             | involved were much larger for example your cable
             | subscription?
        
             | xmprt wrote:
             | If we want to make the situation better for customers then
             | companies like Apple and Google should provide subscription
             | management/payment API for IAPs for free to developers so
             | developers are incentivized to use the centralized
             | platform. Customers can manage and cancel payments through
             | that centralized platform. The only reason developers come
             | up with these roundabout methods for payment is because of
             | the massive fees that Google and Apple have.
             | 
             | Steam isn't a monopoly like Apple and Google are with their
             | respective marketplaces so it doesn't make sense to compare
             | the two. If I want to publish or play a game there are a
             | lot of different ways to do so that don't involve Steam.
        
         | shkkmo wrote:
         | Perhaps you might want your spotify account be able to operate
         | independantly from google? I see similarities to google SSO.
         | For some people, being able not remember more credentials is
         | worth giving google more power over your life, for others
         | google SSO is a non-starter and the would much rather make a
         | seperate account with different credentials.
         | 
         | Some people would rather use single use virtual credut card
         | numbers than rely on google to let them cancel when and how
         | they want.
        
           | BlueTemplar wrote:
           | Or monthly SEPA transfers. That I can set and revoke at will.
           | I wish that there was an error-proof (on my side) way to set
           | the exact amount though. And a range acceptable for the
           | company for what day of the month to do the transfer.
           | 
           | I don't understand why I would need to go through _anyone_
           | else for this than my bank(s) ?
        
         | rkk3 wrote:
         | Maybe costing 30% more isn't worth centralizing the
         | subscriptions
        
           | fragmede wrote:
           | Maybe it's worth it for no-hassle cancelling though. While
           | 30% is steep, and you should check website pricing vs Apple
           | in-app pricing for something you end up keeping, being able
           | to cancel from a predictable UI is worth something compared
           | to phone, mail in or in-person-only cancellation policies.
        
           | nerdjon wrote:
           | I fully understand that I am... maybe closer to people here
           | but in the grand scheme of things financially I am in a
           | better state than most people.
           | 
           | But so I was curious, I have $762 worth of subscriptions a
           | year through Apple. So I could save $228.60 if they were all
           | 30% less.
           | 
           | To me that is worth it. But I would also like to point out,
           | that many of the apps I am subscribed too. I am only
           | subscribed too because it was easy through Apple and I knew
           | that I could cancel. I have a number of expired ones that I
           | used for 6 months or a year but I didn't need anymore. A few
           | that I have right now fit this but I am still actively using
           | them.
           | 
           | If it wasn't for this central subscription, they would have
           | never gotten my money to begin with.
        
             | OmahaBoy69 wrote:
             | How the hell did you manage to rack up $762 in yearly
             | subscription fees...?
        
             | forty wrote:
             | What if there was another payment system available on
             | iphone with similar subscription centralisation service,
             | with only 10% fee? Would you use that instead?
             | 
             | IMO the main problem is the lack of competition. If Apple
             | were forced to accept other payment platforms, you'd soon
             | find the same service for cheaper.
        
               | nerdjon wrote:
               | I don't necessarily care that its Apple.
               | 
               | But the only reason that this works the way it does, is
               | because a developer has to use it. If there really was a
               | third party offering that was just as easy to use sure,
               | why not. But I just don't see companies willingly making
               | it easy to cancel a service without trying to send the
               | customer through some retention workflow.
        
         | adewinter wrote:
         | It would only make sense if the company was able to offer a
         | discount/different price when you use their billing system vs
         | google/apple.
         | 
         | Edit: though it's not clear if Google would even allow that in
         | this case.
        
           | nerdjon wrote:
           | That is the only use case I could think of, but I would have
           | expected if that was the case it would have been communicated
           | in this release.
           | 
           | It looks like on iOS Spotify is $13 a month vs $10 a month on
           | their website. I don't see anywhere https://play.google.com/s
           | tore/apps/details?id=com.spotify.mu... that specifies in app
           | purchases but I assume it is the same.
        
         | bsimpson wrote:
         | Tinder offers a discount if you subscribe through the web.
         | 
         | I got upsold into their 6 month package. You were supposed to
         | get 5 super likes per day (which shows your profile to someone
         | and tells them you like them; otherwise, you wait to maybe
         | sometime show up in their feed and hope they pay attention).
         | After I paid, they changed it to 5 per MONTH. It effectively
         | made my subscription worthless, but unless I go through the
         | hassle of contesting it on my CC, I have no recourse.
        
         | madeofpalk wrote:
         | > As a user, why would I choose this?
         | 
         | On iOS you do not have that choice with many apps because they
         | (fairly) do not wish to fork over 30% of revenue.
         | 
         | So if this was introduced to iOS, the choice would be "Sign up
         | for Netflix in the app" or "Not at all". You just do not have
         | the option to use centralized billing on iOS with Netflix. "You
         | download the app and it doesn't work".
        
           | yreg wrote:
           | >"You download the app and it doesn't work"
           | 
           | Steve wouldn't be happy about this.
        
         | benhurmarcel wrote:
         | It's very easy to stop your Spotify subscription, on their
         | website. There isn't any trick.
        
         | makeitdouble wrote:
         | > Assuming google works like Apple (correct me if I am wrong),
         | disabling a subscription should be able to happen from a
         | central location with a click or 2.
         | 
         | As a user I might go with Spotify exactly for that reason.
         | 
         | My Google account is personal and already attached to a lot of
         | services, while the Spotify one is dedicated and shared. I'd
         | hate to go hunt for the right Google account that has the
         | subscription.
         | 
         | Also, Apple subscriptions have several issues like the service
         | provider can't cancel your subscription. Given that Apple will
         | not let you cancel the current running month, even if the
         | provider agrees with your case, it leads to fucked up
         | situations that only emerge because there's a middleman.
        
         | nvahalik wrote:
         | > Assuming google works like Apple (correct me if I am wrong)
         | 
         | While subscription cancellations work similarly, Apple holds
         | your hand (from a dev perspective) than Google does. Apple's
         | overall approach seems to just make sense. For instance: if you
         | stop offering a particular plan because you don't want to offer
         | it anymore (e.g. no more yearly plans, only monthly and
         | quarterly). With Apple, you get a notification that you need to
         | change your plan, but if the change happens w/in 7 days of your
         | renewal, you'll be grand-fathered in.
         | 
         | With Google... well... you cannot stop offering it. You have to
         | communicate (manually) a cutoff date, (via their API) cancel
         | people's subscriptions, and then deal with the fallout.
        
           | forty wrote:
           | Last time I checked (admittedly a long time on Apple, as a
           | developer, I couldn't refund and cancel a subscription for my
           | customers. They have to go through Apple to do that. Not a
           | great experience.
        
             | nvahalik wrote:
             | It's usually fairly simple though. You (as a dev) don't
             | have to front the cost for support folks to handle it.
        
               | madeofpalk wrote:
               | You still have to answer the emails and say "Sorry no I
               | cannot refund you, go ask Apple" and have the customer
               | not believe you.
        
               | lxgr wrote:
               | It's not a pleasant process for consumers at all, in my
               | experience. I'm not a big fan of hanging around in
               | awkward support chats or calls for things that can
               | usually be resolved with an email.
        
           | nerdjon wrote:
           | How much does Google communicate to the user with this?
           | 
           | One big benefit I didn't mention, is any yearly membership I
           | get a communication from Apple that it is about to renew.
           | Reminding me to cancel if I no longer want to use it.
           | 
           | I don't know of a single service I have subscribed too
           | directly that does this.
           | 
           | Edit: I remembered one. FFXIV oddly enough reminds me every
           | month that they are about to bill.
        
         | usr1106 wrote:
         | > As a user, why would I choose this
         | 
         | Because I don't even have Google in my phone?
         | 
         | (No idea whether Spotify will support that, but if they wanted
         | they could.)
        
         | curiousgal wrote:
         | > _disabling a subscription should be able to happen from a
         | central location with a click or 2._
         | 
         | Paypal
        
           | nerdjon wrote:
           | Any optional third party option is not a solution.
           | 
           | As long as it is a choice for the developer, it doesn't fix
           | the issue. The only reason Apple (and I assume Google) are
           | able to make it this easy is because the app developers are
           | forced to allow it.
           | 
           | But if they are no longer forced, why would an app developer
           | choose make it easy to cancel?
        
             | babypuncher wrote:
             | Apple could make easy in-app service cancellation a
             | requirement for store approval.
             | 
             | This does not solve the problem of users needing to provide
             | their CC info to additional payment providers, but it at
             | least solves the problem of dark patterns being used to
             | keep users from unsubscribing.
        
               | nerdjon wrote:
               | Maybe I am just jaded, but after the fighting and the
               | shady practices done by Facebook to try to get around the
               | app tracking.
               | 
               | I don't really see that going over too well, and a court
               | case being brought up about control or whatever.
               | 
               | I mean I agree, that would be a fantastic rule and if it
               | was enforced and allowed. Then sure, that fixes at least
               | the dark pattern cancelation issue.
        
           | alimov wrote:
           | Ok, what if you don't use paypal. Or if one app uses pay pal,
           | but another wants you to use some other payment solution.
           | You're still stuck registering to new services and sharing
           | your CC info. So now you also have to remember what service
           | is used by whatever app you are trying to cancel billing for.
        
             | usrusr wrote:
             | You might just as well insist on never linking up your
             | Google account with payment. This might not apply to a
             | random pay to win candycrush clone, but Spotify is enough
             | of an outlier they they likely have quite a few subscribers
             | (or would be subscribers) who never accepted their phone as
             | an app store payment mechanism. I know quite a few people
             | who I'd suspect to be far more willing to hand over they CC
             | data to Spotify than to Apple/Google.
        
             | lxgr wrote:
             | I believe that we'll see a centralized subscription
             | cancellation service for credit and debit cards before too
             | long.
        
           | prophesi wrote:
           | Could also use privacy.com though iirc it only works at
           | masking debit cards.
           | 
           | But yeah, this burden shouldn't be offloaded to users to make
           | sure they're using a different centralized service to
           | actually cancel subscriptions.
        
         | divbzero wrote:
         | I suspect you're right about this. I would love to see the data
         | on how many users end up choosing Spotify's payment system over
         | Google Play Billing.
        
       | goldenManatee wrote:
       | This does not warrant PR excitement getting built up. It's just
       | another payment option, not a discount package deal for
       | consumers, so ... who cares enough to make a press release about
       | a feature this boring.
        
         | [deleted]
        
       | robbiet480 wrote:
       | Google's post https://news.ycombinator.com/item?id=30782640
        
       | encryptluks2 wrote:
       | I was under the impression that they were combining the libraries
       | or you'd get to pick which provider you wanted to stream music
       | from but use the same app. If all this does is give you the
       | option to pay for Spotify using Spotify app or a Google Pay
       | subscription, then it only matters if Google is giving this
       | option to all developers for any app.
        
       | swarnie wrote:
       | I don't understand what i'm getting here?
       | 
       | I downloaded Spotify on to my android phone, it takes my payment
       | and it works.
       | 
       | For a tech non-Silibro, what does this blog post mean?
        
         | colinmhayes wrote:
         | Spotify keeps more of the money when you use their payment
         | system instead of Google's. Presumably they'll give you a
         | discount for not using google pay.
        
           | harrisonjackson wrote:
           | Or use the extra money to improve their product and pay the
           | musicians more - in a perfect world.
        
             | ars wrote:
             | Or more realistically they'll lower prices.
        
               | syspec wrote:
               | Temporarily to get users to switch, or permanently if
               | they can determine how to monetize the user's information
               | (what you didn't read the whole EULA?)
        
       | u2077 wrote:
       | This is great, I guess? Is Google just caving in at a smaller
       | scale before they get _forced_ to do this at a larger scale? I
       | feel like by doing this now, they are trying to dodge something
       | that's very likely to come down the road. (antitrust regulations)
       | 
       | Then again, partnering with only the big names will create a new
       | wave of complaints.
        
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       (page generated 2022-03-23 23:00 UTC)