According to PaidContent.org, Apple decided to approve the application 'Spotify' for use on the iPhone, despite controversy that Spotify represents a growing threat to Apple's iTunes.
Decisions regarding which applications Apple allow for its devices have been closely watched by many due to the previous applications which have been rejected by the company. For Apple it seems to boil down to duplicated functionality; in short, if the application submitted for approval duplicates what the device can already do, then it is rejected. According to Robert Andrews of PaidContent.org, "The FCC is currently looking into Apple's failure to approve the Google's Voice app, which has sparked some criticism in tech and media circles, with some alleging that Apple's is influenced by its desire to protect its network partners' voice call revenue, rather than have it be undercut by Google voice data traffic."
When the Spotify application was submitted to Apple, there was a great deal of speculation as to whether Apple would regard an unlimited music program as something which would tread on the toes of the more "a la carte downloads" the iTunes store provides. Submitted around a month ago, the Spotify application being allowed will surely begin to rake some money in for Spotify. However, despite being a fairly big step for Spotify, it is by no means their only business model.
Universal Music Sweden was reported to have said that they are making more money from Spotify than iTunes, so others are wondering whether Apple were delaying approval of the Spotify application whilst keeping quiet about their own version of the unlimited music service in its upcoming Sept. 9 event.
According to PaidContent.org, Spotify is gaining rave reviews, but a question mark hangs over its chances of financial success. The app would be free to download but requires a Â£9.99-a-month subscription, which also removes ads. Spotify says there will also be an annual-subscription option.
Some consider the development of this application to squeeze the remaining breath out of iTunes, however the popularity of the application along with how well it works remains to be seen.