The Leadership Letter

Real correspondence from the people running real companies — and what it reveals about leadership.

When Your Biggest Partners Refuse Your Terms, Listen

A 10% discount can't buy compliance when the real objection is losing control of the customer.

Neither partner seemed super concerned about integrating with Subscription Center, though both asked if this would be 'retroactive' or only for subs acquired through their flow after Play Billing integration. Neither partner was particularly moved by the continued offer of 10% rev share where ever they are all in on GPB. Both still think the economics are not there.

Spotify still thinks they'll have to charge more for users acquired using GPB. Spotify is going to come back to us sometime during the week of 2/12 with a counter-proposal which they tell us we're 'probably not going to like.' Interestingly, Sue said they are hopeful we can arrive at a mutually agreed middle ground that could be applied to 'other stores.'

Netflix maintains that they should be treated differently from other developers because 'not everyone gets a front row seat at the stadium.' Netflix asked if they could use Google Pay instead of GPB because it 'looks just like GPB.' Netflix is still continuing to test consumption-only vs. Play Billing. Their appetite for this grandfathering proposal will be impacted by the delta in results they see between both options.

Neither partner responded well to the idea of timeboxing the grandfathering period. Spotify simply doesn't believe 'handing over control to a platform will ever be good for our business.'

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Court Exhibit
In re Google Play Store Antitrust Litigation (Epic v. Google)
3:21-md-02981 (CAND), Doc. 886-96, filed 2023-12-21
February 7, 2018
Public domain
View the primary source →