UPDATED 01:09 EDT / JULY 09 2015

NEWS

Apple Music rival Spotify wants to help users save $3 by ditching Apple’s App Store

In the wake of Apple Music’s debut, rival Spotify is contacting users who have subscribed to its Premium music service through Apple’s iTunes App Store to recommend that they switch to Spotify on the web for $9.99 per month rather than paying $12.99 per month through iTunes.

In an email to Spotify subscribers obtained by The Verge, the company positions the switch as a way in which its Premium subscribers can save $3 per month and still receive the same service.

The email reads:

“We like you just the way you are. Don’t change. But if you want to change how much you pay for Spotify Premium, we’re here to help. In case you didn’t know, the normal Premium price is only $9.99, but Apple charges 30 percent on all payments made through iTunes. If you switch your payments to Spotify.com, there are no transaction costs and you’ll save money.”

Although it is the biggest player in the music streaming market with more than 20 million paying subscribers and, including those on the free tier, more than 75 million active users, Spotify continues to lose money despite growing revenue.

Facing competition for Apple Music, Spotify is trying to improve its position by holding onto iOS subscribers who may be tempted to switch to the ‘cheaper’ Apple Music. Technically both Apple Music and Spotify charges the same $9.99 per month single member subscription fee, but due to the 30 percent App Store charge, Spotify may be perceived as more expensive.

Spotify has also been instrumental in prompting an investigation into allegations that Apple was pressuring music labels into ending deals for free, ad-supported music streaming services in the lead up to Apple Music’s launch as a subscription-only service.

In addition to this, Spotify has publicly stated its unhappiness with Apple’s 30 percent App Store “tax”, saying it gives Apple and unfair advantage over the competition. As if that is not enough, Apple’s App Store rules prevent companies, like Spotify, to redirect users to its own site to sign up at the lower (real) subscription rate.

Spotify’s email shows subscribers how disable iTunes auto-renewal and, once their current subscription via iTunes has ended, gives them a mechanism to switch to the Spotify website.

Image via Spotify.com

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