In 2015, Apple tried to CRUSH Spotify. • Threatened to remove them...
Oscar Hoole@theoscarhoole
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Dec 28, 2024
~3 min read
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In 2015, Apple tried to CRUSH Spotify.
• Threatened to remove them from App Store
• Demanded 30% of all revenue
• Blocked their app updates
But Spotify's response was genius.
Here's how a Swedish startup outsmarted the world's biggest company 🧵
• Threatened to remove them from App Store
• Demanded 30% of all revenue
• Blocked their app updates
But Spotify's response was genius.
Here's how a Swedish startup outsmarted the world's biggest company 🧵
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2006: Daniel Ek started Spotify in Sweden.
The music industry was dying:
• Piracy killed 50% of revenues
• CD sales collapsed
• iTunes dominated legal downloads
Everyone said streaming would fail.
The music industry was dying:
• Piracy killed 50% of revenues
• CD sales collapsed
• iTunes dominated legal downloads
Everyone said streaming would fail.
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By 2015, Spotify was growing fast:
• 75M active users
• Present in 58 countries
• Worth $8.4B
Then Apple decided to enter music streaming.
Their weapon? Apple Music.
Their advantage? Control of the App Store.
• 75M active users
• Present in 58 countries
• Worth $8.4B
Then Apple decided to enter music streaming.
Their weapon? Apple Music.
Their advantage? Control of the App Store.
1:50
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Apple's strategy was brutal:
1. Charged 30% fee on all subscriptions
2. Banned links to external payment options
3. Blocked app updates mentioning prices
4. Pre-installed Apple Music on 1B+ devices
They were choking Spotify slowly.
1. Charged 30% fee on all subscriptions
2. Banned links to external payment options
3. Blocked app updates mentioning prices
4. Pre-installed Apple Music on 1B+ devices
They were choking Spotify slowly.
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The numbers were devastating:
• Spotify: $12.99 on iOS (to cover Apple's 30%)
• Spotify: $9.99 everywhere else
• Apple Music: $9.99 everywhere
Apple could undercut Spotify using Spotify's own money.
Pure genius. Pure evil.
• Spotify: $12.99 on iOS (to cover Apple's 30%)
• Spotify: $9.99 everywhere else
• Apple Music: $9.99 everywhere
Apple could undercut Spotify using Spotify's own money.
Pure genius. Pure evil.
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But then Ek made a shocking move:
Instead of surrendering, he went nuclear.
Filed an antitrust complaint with the EU.
Apple's response? "Spotify wants all the benefits of a free app without being free."
Instead of surrendering, he went nuclear.
Filed an antitrust complaint with the EU.
Apple's response? "Spotify wants all the benefits of a free app without being free."
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Spotify launched TimeToPlayFair.com
Exposed Apple's practices to the world:
• Rejected app updates 12 times
• Blocked Spotify from HomePod
• Prevented Siri integration
• Restricted user communications
The tech world was stunned by their boldness.
Exposed Apple's practices to the world:
• Rejected app updates 12 times
• Blocked Spotify from HomePod
• Prevented Siri integration
• Restricted user communications
The tech world was stunned by their boldness.
2:17
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The war escalated:
• EU opened formal investigation
• US Congress questioned Apple
• Other developers joined the fight
• South Korea changed their laws
David was winning against Goliath.
• EU opened formal investigation
• US Congress questioned Apple
• Other developers joined the fight
• South Korea changed their laws
David was winning against Goliath.
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2021: The first victory.
Apple forced to allow external payment links.
Their 30% tax started crumbling.
But here's the crazy part:
During this entire war, Spotify kept growing:
Apple forced to allow external payment links.
Their 30% tax started crumbling.
But here's the crazy part:
During this entire war, Spotify kept growing:
0:27
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The growth was insane:
2015: 75M users
2017: 140M users
2019: 248M users
2021: 365M users
2023: 489M users
While fighting the world's biggest company, they added 414M users.
How?
2015: 75M users
2017: 140M users
2019: 248M users
2021: 365M users
2023: 489M users
While fighting the world's biggest company, they added 414M users.
How?
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Ek's strategy was brilliant:
1. Made the fight public
2. United other developers
3. Focused on user experience
4. Kept innovating (podcasts, audiobooks)
5. Never backed down
They turned Apple's pressure into free marketing.
1. Made the fight public
2. United other developers
3. Focused on user experience
4. Kept innovating (podcasts, audiobooks)
5. Never backed down
They turned Apple's pressure into free marketing.
0:30
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Today:
• Spotify: 489M users
• Apple Music: 88M users
The 'little Swedish startup' is 5.5x bigger than Apple Music.
They didn't just survive - they dominated.
• Spotify: 489M users
• Apple Music: 88M users
The 'little Swedish startup' is 5.5x bigger than Apple Music.
They didn't just survive - they dominated.
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The lesson is clear:
When a giant tries to crush you, don't hide.
Fight in public.
Build alliances.
Turn their size into a weakness.
David beats Goliath by changing the rules of the game.
When a giant tries to crush you, don't hide.
Fight in public.
Build alliances.
Turn their size into a weakness.
David beats Goliath by changing the rules of the game.
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Founders: Your biggest competitor's strength can become their weakness.
Spotify turned Apple's dominance into a story about unfairness - and won.
Sometimes the best defense is a bold offense.
Follow @theoscarhoole for more threads on tech wars and comebacks
Spotify turned Apple's dominance into a story about unfairness - and won.
Sometimes the best defense is a bold offense.
Follow @theoscarhoole for more threads on tech wars and comebacks
15
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16
If you enjoyed this thread, you will LOVE this one:
Oscar Hoole@theoscarhoole
In 1978, a 15-year-old boy was publicly humiliated.
Cut from his high school basketball team.
Too short. Too weak. Not good enough.
That boy became the greatest athlete in history.
Here's how Michael Jordan turned rejection into 6 NBA championships: 🧵
Cut from his high school basketball team.
Too short. Too weak. Not good enough.
That boy became the greatest athlete in history.
Here's how Michael Jordan turned rejection into 6 NBA championships: 🧵
17
From a rejected English teacher earning $12/month.
To building Alibaba into a $500B empire.
Jack Ma proved that...
Crazy dreams + relentless execution = unstoppable success
READ THIS:
To building Alibaba into a $500B empire.
Jack Ma proved that...
Crazy dreams + relentless execution = unstoppable success
READ THIS:
Oscar Hoole@theoscarhoole
He was REJECTED by 100 banks.
Lived in a tiny apartment with 17 people.
Failed the college entrance exam 3 times.
Everyone called his idea 'impossible.'
Today, Jack Ma's Alibaba is worth $500B.
The untold story of China's greatest entrepreneur: 🧵
Lived in a tiny apartment with 17 people.
Failed the college entrance exam 3 times.
Everyone called his idea 'impossible.'
Today, Jack Ma's Alibaba is worth $500B.
The untold story of China's greatest entrepreneur: 🧵