In 2015, Apple tried to CRUSH Spotify. • Threatened to remove them...
Future Stacked@FutureStacked
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Jan 14, 2025
~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 Daniel Ek founder of Spotify 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 Daniel Ek founder of Spotify 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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Daniel 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 Daniel EK '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 Daniel EK '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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