Spotify is done with Apple tax and has decided to pack its bags and move its focus to Europe. Spotify has over 547 million users globally, yet still, the company has some competitive struggles of its own, one of these being Spotify facing a hard loss in its efforts to try and remove Apple Tax in the States.
According to Make Use Of, Apple Tax is what critics call the additional charge that Apple requires from users when they use in-app purchases, as well as the 30 percent commission Apple gets from companies on revenue generated through applications they make.
Regarding Digital Music News’s article, Spotify was, and still is, very upset by Apple Tax, so they have decided to turn their attention to European users by
announcing their Digital Marketing Act.
Although it may anger some users in other parts of the world, Spotify will be able to significantly increase its revenue stream and secure a guaranteed flow of cash that is unhindered by Apple Tax.
Digital Music News states that the Digital Marketing Act will alert users to price increases and deals with Spotify Premium and artist merchandise.
Due to Europe not having Apple tax, this will decrease the prices of these products allowing Spotify to have more deals. Lowered prices for users mean increased likeability towards Spotify.
Along with this, Spotify will introduce superfan clubs that will allow fans to connect and the artists they adore.
“All of this can now come without the burden of a mandatory ~30 percent tax imposed by Apple, which is now prohibited under the DMA,” as stated in Digital Music News.
This does not mean that Spotify will entirely abandon its other platforms. Still, Spotify will keep its focus on where it can make the most revenue until it can eventually have a solid enough amount of money coming in to be able to add these features to other parts of the world.