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Vishu Bheda
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Medial • 6m
In 2015, Apple tried to crush Spotify with brutal tactics. They had all the power—billions in cash, the App Store, and millions of loyal users. But Spotify didn’t back down. Instead, they launched a counterattack so bold, it changed the rules of the game forever. Here’s how: In 2015, Apple launched Apple Music, making things tough for Spotify. Apple demanded 30% of Spotify’s in-app subscription fees, delayed its app updates, and even considered removing Spotify from the App Store. Spotify had two bad choices: 1. Pay the 30% fee and increase subscription prices, making Spotify more expensive than Apple Music. 2. Stop in-app payments, which might hurt sign-ups. Instead of giving in, Spotify took a smarter route: 1. Dodging Apple’s Fee: Spotify removed the option to sign up through the app. Instead, it told users, “Want Spotify Premium? Sign up on our website—it’s easy!” This way, Spotify avoided paying Apple’s 30% fee. 2. Calling Out Apple: In 2019, Spotify launched the “Time to Play Fair” campaign, accusing Apple of being unfair. They made videos and a website explaining how Apple blocked competition. Spotify’s CEO spoke out, gaining public support. 3. Taking Legal Action: Spotify filed a complaint in Europe, and by 2022, the EU ruled that Apple’s rules were anti-competitive. This forced Apple to make changes. Despite Apple’s challenges, Spotify thrived. Today, Spotify has over 200 million paid subscribers—double Apple Music’s numbers. The lesson? When faced with unfair rules, don’t give up—find a smarter way to win. If you like this, then follow me for more such amazing business case studies.
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