Why Does Spotify Keep Ripping People Off?

spotify.jpg
flickr/Administrador Galeria Uninter
Ten dollars a month is a small price to pay for practically every piece of recorded music except The Beatles. Which is why, late last year, I signed up for Spotify. Only two months in, however, I was out, and feeling like I'd been ripped off. Turns out I'm not the only one.

See also: What Are You Listening to on Spotify? Guess What, Nobody Cares!

A little background: Spotify Premium, the ad-free and mobile subscription arm of the streaming music service, has been available in the U.S. since 2011, and has over 5 million global users. All the kinks have surely been worked out, right? Not quite. When I signed up in December I was charged $9.99, the price for a month of service. The next day, my credit card was charged another $9.99. That's when the trouble began.

After exchanging emails with multiple customer service reps, I gave up on a refund from Spotify and instead filed a claim with my bank, Wells Fargo. The funds were returned and my Spotify login promptly stopped working. Fair enough.

That was it -- until one month later, when Spotify charged my credit card another $9.99. More emails ensued. The responses I received from my customer support agent, though sympathetic, did little to quell my frustration:

I am sorry if I came across wrongly, I just meant the outcome was that we could not help you and you ended up getting charged again. That is what we tried to prevent as I knew the bank would not help you :(

A dozen emails in, and still without a refund, I received an explanation -- a second account under my name was at fault for the erroneous charge. In both instances, with one phone call my bank identified the charges and made things right.

And that illustrates the problem with Spotify. It's not about the ten bucks. It's how they address account problems, with inefficient web-based customer support, blind shuffling between representatives, and the lack of timely resolution.

My editor had a similar problem. When he canceled his service in January, he immediately received a pair of $9.99 charges, and was told his subscription would continue until March. When he responded via email that he wanted his service canceled immediately and the extra charge removed, he received this response:

The two charges that you see on your statement are both linked to your Spotify account. It's possible that you accidentally pressed the subscription button twice.

But don't worry about having lost any payments. Our system has taken account of both payments and has extended your Premium subscription to two months. This means that you will not be charged again on your next billing date. Your subscription will continue as usual the month after.

However, if you would like the second payment refunded and your subscription to continue with normal monthly payments next month, just let us know your date of birth and the last four digits of your payment card.

In other words, it's probably your fault, but even if it's not, never fear -- we'll just continue your service and keep charging you. (My editor's money was refunded after he mentioned that I was putting together this story.)

Last week I spoke with Graham James, head of communication for Spotify USA, Inc., based in New York City. Our phone conversation was terse and tense, and most of my questions went unanswered.

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26 comments
SuperSuperPowaz
SuperSuperPowaz

The point that you guys are missing, is they aren't supposed to be charging extra money, and it shouldn't be so difficult to cancel. Imagine you paying the 10 bucks, then losing your ipod. You dont need the service anymore right? Well you still get charged for the next 3 months. Thats a no no.

Neal Frickson
Neal Frickson

I stopped reading this article and stared at the stall wall instead.

raescob
raescob

I'm surprised that they offering the service for ONLY $10 a month. They are providing a great service, yet still losing money as a company. You want to pay such a low price for unlimited amounts of music and also get great customer service, well, that's a catch 22. 

trechel
trechel

Even though Spotify offers a cool product, I could never again give such sensitive information to a company that does not respect my right to stop service.  Fortunately my credit card was stolen soon after I joined Spotify, and I felt no need to sustain my membership (even if it did mean avoiding explicit advertisements while listening to childrens' music).  Who knows how long they would have continued to attempt to charge my credit card?

I think a lot of responders are missing the point of the article...  I am grateful to be privy to such ridiculous and unresponsive accounting practices before renewing a service with Spotify.

Tony Serbiak
Tony Serbiak

Streaming music sites pay the artists somewhere around $0.00001 per song play. So... you were saying something about getting ripped off? That's cute.

Santa
Santa

First world problems...

Adrian Medina
Adrian Medina like.author.displayName like.author.displayName 2 Like

Spotify is amazing given that you are not as incompetent as the poor writer who penned this article. That is all. For you, Sylvia Seo.

Emmanuel Heredia
Emmanuel Heredia like.author.displayName 1 Like

I use spotify every day, it's great. I can make my own playlists, listen to Radio and it's only $10 a month. no complaints from me.

Antonio Arias
Antonio Arias like.author.displayName 1 Like

Well...I guess the moral of the story is dont leave them. If you do, they'll make you pay. Just like any good gang or crime syndicate. But seriously...I've been on here for 2 years and thankfully no problems.

TheFestivalLawyer
TheFestivalLawyer like.author.displayName 1 Like

I am a huge spotify fan. It seriously changed the way I listen to music. Anyone who doesn't understand how much more awesome it is than Pandora is clueless. You can listen to whole albums, share playlists, make playlists, sends songs or whole albums to other people..it's fantastic. Sounds like their customer service sucks. But honestly if someone said to you "I can give you all the music in the world for ten bucks..but there is a chance they may fuck up and double charge you ten bucks. " I would be like "umm yeah Ill take that". I seriously think Pandora and Spotify and those types of services are the only thing keeping music alive at this point...

kplo
kplo moderator communitymanagertopcommenter like.author.displayName 1 Like

@TheFestivalLawyer Musicians are probably helping keep music alive as well. Maybe a little. 

TheFestivalLawyer
TheFestivalLawyer

@kplo @TheFestivalLawyer  hahah..missing word..what i meant was "music business"..I meant that record labels have basically thrown up their hands at how to make money or market or produce albums or content...so it is up to other services to try to keep the music business alive for the future...I think you knew what i meant though? Maybe a little?

Corporate_ripoff
Corporate_ripoff

Time Warner Cable, Verizon and tons of other companies all do the same thing.  Business is about ripping people off.  They make commercials with smiling faces and false promises, but in reality the product rarely works as well as they claim, and they all have horrible customer service.   Time Warner canceled my auto pay, blamed it on my bank (who had no knowledge of what they claimed), and charged me $20 in late fees.  Their customer service was less than helpful.  I seemed to know more than they did.  The best was the Eastern European woman that hung up on me because I was angry about the situation and her stupidity.  

Brian Allan Hagood
Brian Allan Hagood

Been using spotify for almost 2 years now, and though I'm not in love, I have had absolutely no problems with billing. You should probably change the article to "Why Does Spotify Keep Ripping ME Off?". And if $10 a month is "robbing you blind", it's probably a personal problem. Personally, I think it's a steal for all the service offers: high-quality streaming, offline playlists, etc. The only issues I have with it are the allegations that it's royalty system does not fairly compensate artists as well as itunes and the app could use some tweaking. Fix those 2 issues, and I might be in love.

boomski17
boomski17 like.author.displayName 1 Like

I love Spotify and have an account for me (android/PC user) and my fiance (mac/iphone user).  I have had both accounts for over a year and love it.  No issues with billing or apps on desktop or phones.  I don't understand how people can like pandora better.   U can never go back and play the song you just listed to or view what you liked in a playlist.  Spotify has a radio feature but that is one feature that they offer.   I will be a lifelong member of spotify!

Cisco R Ocks
Cisco R Ocks

Fuck Spotify, I use my phone on shuffle. 500+ new songs from late 2012 and early 2013. Also, I hear new shit on FUTURE MUSIQUE's Podcast.

Brent Oakes
Brent Oakes like.author.displayName like.author.displayName 2 Like

What a whiny fucking article. Change your god damn credit card number genius. Who gives a shit about a 10 second commercial anyway? It's FREE! First class fucking problems.

Cristi Morales
Cristi Morales

I love spotify. I don't pay for their premium services. I love being able to create my own playlists and I get to listen to them at home & work.

Nick Capertina
Nick Capertina

Well, that answered my ongoing question of whether to join or not.

jon.hughes001
jon.hughes001 like.author.displayName 1 Like

I had issues with them too, where the software would work properly on my PC but not my Mac, even though it used to work fine on my Mac, and then they 'updated' the Mac version three times and still didn't fix issues that hundreds of people in the forum were facing. Each month, I would complain about how I feel we all deserve a partial refund due to the Mac issues and every month we would be ignored or told it's a "top priority bug fix" even though they would release new updates and the software was still not working properly on my Mac.

But honestly, whatever, the service is worth it, I'm a subscriber for life. If I could get some sort of discount for paying a year in advance I would. 

Alexandria Ramirez
Alexandria Ramirez

I used spotify once and found it to be retarded. I'll pay 36 dollars a year and stick with Pandora One.

boomski17
boomski17 like.author.displayName 1 Like

@Alexandria Ramirez If you used spotify more than once you would learn all the features they had to offer and blows away pandora.  But if can only handle liking songs and making stations then for sure stick with pandora.  Spotify maybe to complicated for you. 

Anthony Bentancourt
Anthony Bentancourt like.author.displayName like.author.displayName like.author.displayName 3 Like

If you think Spotify sucks, you are probably dumb or unlucky.

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