Spotify's Apple Watch App Tops Charts, Sparks Revenue-Sharing Tension
Spotify's Apple Watch app has topped the charts, currently reigning as the No. 1 app in the Watch Music category. However, Spotify is seeking to bypass Apple's revenue-sharing model, leading to a tense situation between the two tech giants.
Spotify's Apple Watch app, reviewed and approved by Apple in September 2018, is now facing potential restrictions. Spotify claims that Apple is blocking access to products and updates for their app. This comes as Spotify is asking for zero contribution to the App Store, generating no App Store contribution themselves but paying distribution fees to retailers and carriers.
Spotify's stance is understandable given that only a tiny fraction of their subscriptions fall under Apple's revenue-sharing model. The majority of Spotify's customers use their free, ad-supported product. Spotify has been informed by Apple that they are working on Siri and AirPlay 2 support, but the streaming service wants to avoid Apple's revenue-sharing model altogether.
Spotify's Apple Watch app's success has highlighted the ongoing tension between the two companies over revenue-sharing. While Spotify seeks to avoid Apple's model, Apple has not publicly disclosed the specific person or group responsible for dealing with Spotify's requests. The situation remains unresolved, with Spotify's app continuing to top the charts despite the potential restrictions.
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