Spotify says iOS payment rule change boosted Premium subscriptions

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Spotify said its iOS app update, approved by Apple earlier this month, drove “a significant increase” in conversions from free to Premium subscriptions.

On May 2, Spotify said Apple approved its app updated in the US, a move that was prompted by a federal court ruling that found Apple in “willful violation” of a previous injunction against its App Store practices.

Spotify users on Apple devices are now able to use other payment options beyond Apple Pay. Previously, apps were barred from mentioning alternative payment options or indicating that external payments might be less secure.

Spotify is among the first to update its app, the result of a legal battle that began with Epic Games’ 2020 lawsuit challenging Apple‘s app distribution policies.

US District Judge Yvonne Gonzalez Rogers on April 30 ruled that Apple violated a 2021 injunction that prohibited it from imposing anticompetitive pricing. The judge ordered Apple to stop its illegal behavior after ruling that the tech giant forced apps using external sales to pay a 27% commission to the company.

“Spotify’s internal data show that its iOS app updates have already resulted in a significant increase in iOS users upgrading to a Premium subscription.”

Spotify

In a new court filing obtained by TechCrunch on Wednesday (May 21), the streaming giant said: “The 2025 Order has created substantial benefits for developers and — more importantly — consumers.

“Spotify’s internal data show that its iOS app updates have already resulted in a significant increase in iOS users upgrading to a Premium subscription. Apple’s compliance has also enabled new product innovations that would not have been possible without the Injunction.”

“This strongly suggests that the increase is due to Apple finally complying with the Injunction thanks to the 2025 Order.”

Spotify

While Spotify’s conversion rates from free to premium tiers remained “relatively constant” on Android devices, iOS conversion rates jumped substantially within two weeks of the update’s launch, the company reportedly said in the filing.

“This strongly suggests that the increase is due to Apple finally complying with the Injunction thanks to the 2025 Order,” Spotify reportedly wrote. The company also noted early positive results for audiobook purchases just three days after implementing the new features.

Spotify’s brief to the court joins others including Microsoft who are backing Epic Games in its lawsuit against Apple.

In the first quarter of 2025, Spotify reported a 12% YoY jump in its Premium Subscriber base to 268 million, which it said was the “highest Q1 Subscriber net adds since 2020.” The streaming giant’s operating income reached a record high of €509 million ($535.6m), while revenue grew 15% YoY to €4.190 billion ($4.4bn).

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