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Spotify lashed out against Apple and the AppStore policies, namely the Apple tax. There are more claims, really venting about the app experience on iOS as well as conflict in competition.
They are not alone. BaseCamp generated buzz about Apple's AppStore practices when it's Hey.com app was rejected.
Collectively the Spotify claims point out major issues not only with Apple's AppStore, but mobile app store distribution issues.
Spotify has made a dedicated website to express their arguments call Time to Play Fair.
The store model is not favorable to the businesses developing native apps and many are questioning if they really need applications as more and more are migrating their client strategies to progressive web applications.
'In recent years, Apple has introduced rules to the App Store that purposely limit choice and stifle innovation at the expense of the user experience—essentially acting as both a player and referee to deliberately disadvantage other app developers.' Daniel Ek
According to research done by the New York Times Ek and Spotify are not the only company hurt by Apple's App Store practices. The study shows that since Apple began placing its own apps in the App Store Apple has dominated many of the most popular search terms. What's worse is the search results have been stacked with Apple apps not related to the search intent.
But as Apple has become one of the largest competitors on a platform that it controls, suspicions that the company has been tipping the scales in its own favor are at the heart of antitrust complaints in the United States, Europe and Russia.
New York Times
Let me list Spotify's claims:
- 30% Purchase Tax
- Limiting Communication with Users that Pay Outside the AppStore
- Blocking Experience Enhancing Upgrade
- Routinely Blocking Application Updates
- Locking Competitors out of Siri, HomePod, and Apple Watch
- Apple Customers Do Not Have A Payment Choice
Apple released a response to Ek's claims, which of course denies everything.
'At its core, the App Store is a safe, secure platform where users can have faith in the apps they discover and the transactions they make. And developers, from first-time engineers to larger companies, can rest assured that everyone is playing by the same set of rules. ' - Apple
I am not someone who knows the details of the interactions between Apple and Spotify. So I can't speak to the availability of the platform features and what payouts the services make to the artists.
I do know more and more application brands are phasing out their dependence on app stores and migrating to a PWA strategy. Netflix fired a brutal punch to Apple over Christmas when they pulled the ability for new subscriptions to use Apple as a payment service.
Netflix earned over $850M in subscriptions via the AppStore in 2018, generating between $130 and $260M for Apple. In fact subscription services like Netflix and Spotify generate a significant amount of AppStore revenue, approximately $3.7B from the top 10 apps to be fair.
The disagreement only heightens the appeal progressive web applications have, even on iOS, where support is still somewhat limited.
I am receiving an increasing number of inquiries about replacing native apps with PWAs. Many fear issues highlighted by Spotify's claims. Others have either suffered a '4.2.6' removal or denial.
The more I discuss the merits of progressive web applications over native apps with clients and potential clients I have formulated a simple way to determine if you should develop and ship a mobile app:
'Does your app help sell iPhones or generate significant store revenue for Apple?'
If your answer is yes then you should think about developing an app. Otherwise a progressive web app is probably your better choice.
Why Hasn't Spotify Gone to a Progressive Web Application?
If you are wondering, Spotify offers a progressive web application option. Why they don’t use this as there primary path to ‘install’ their experience I don’t know.
Traditionally brands were trained to think consumers want apps over web-based experiences.
This fails to account for current trends. The web has caught up to native applications in feature parity for just about everything. For a music-based application like Spotify all the pieces are in place to be a web-based experience that matches their current native application.
We also know that consumers are tired of mobile apps. Today no one downloads apps anymore. Sure there are app downloads, but by and large the fad has ended. Most app downloads are to new phones, ‘restoring’ a user’s existing apps.
Outside of frivolous games native apps have simply fallen out of favor by most.
For established brands, like Spotify, have a large base of customers using their existing app. It will be difficult to wean them off the native app to the PWA solution.
Ultimately this means they have to weigh the costs and benefits for maintaining native apps, with the AppStore tax against potential customer churn in changing their interface to the web.
Right now there are many large brands taking that journey. Uber, Lyft, Twitter and others are in the process of moving to a progressive web app solution. Most have PWAs with feature parity to their native apps. They typically have moved to a PWA as the client code base and use a hybrid wrapper like Cordova to put the solution in the store.
This is the problem when you chose to go the way of a closed solution, native apps over an open solution, web. While native apps certainly were popular years ago, that has run its course and now presents an impediment to growing a profitable business.
Why Doesn't Spotify Eliminate AppStore Payments?
I can't speak for Spotify, but I would do exactly what Netflix did.
ApplePay is just one payment provider. The web has been monetized for 25+ years. I have built numerous sites with real-time credit card, ACH, PayPal and other payment providers.
Today the options have increased even more with cryptocurrencies and other more modern methods.
The Payment Request API make this integration and experience even easier. You can even make yourself a payment provider with the new Payment Handler API.
For the record Safari does support the Payment Request API and you can use ApplePay in the other browsers as well as Android Pay and Microsoft Pay.
![Spotify Web App History Spotify Web App History](/uploads/1/3/4/0/134050422/251446078.jpeg)
The ability to receive money online are easier than ever, even on a website. Mobile apps do not have a monopoly on montetization.
And here is the thing, credit card transactions cost less than 3%, even for the more expensive providers. Generally the transaction fee is 1-2.5%.
This is much, much lower than the 30% Apple takes when someone buys a digital good or service through your app.
This is something I have never understood, why would any business be happy with a third party taking a 30% cut of their pre-tax revenues?
Apple's tax laws are 30% of all sales, except for subscriptions. The first year of a subscription has the 30% penalty, it then drops to 15%. The fee only applies to digital goods purchased through the app, not physical goods.
Does Apple really offer that much value? Could these businesses succeed through the web?
I say of course they could.
Paul Thurrott recently made a good point about IAP and Apple's policies after Apple blocked Hey.com's new app.
'This would be acceptable if Apple allowed app makers to use other IAP payment systems, which they do not, or if Apple even allowed app makers to just communicate that they could pay this fee on the Basecamp website. But they don’t even allowthat. And that, of course, is where Hey 1.0.1 ran afoul of Apple’s incredibly tone-deaf policies: Basecamp had the temerity to put a note in its own app explaining that users could go to the web and pay there instead.'
- Paul Thurrott
A Quick Review of AppStore Revenues - Who Actually Makes Money?
Apple and Google makes billions through their mobile app stores. There is no denying the revenue amounts.
Sensor Tower seems to be the consensus reporting service when it comes to app popularity and revenues. So I will use their numbers as examples.
Lets start with the subscription apps like Spotify, which by the way is not in the top 10, so I could not find actual revenue numbers.
I already shared the estimated $850M Netflix made last year. Here is a list of the top 10 subscription based services iOS revenues from 1/2018-11/2018 (so not including December revenues):
- Hulu $132.2M
- QQ $159.7M
- YouKu $192.9M
- Pandora $225.7M
- YouTube $244.2M
- Kwai $264.5M
- Tinder $462.2M
- Tencent $490.0M
- Netflix $790.2M
Notice how half of these apps are Chinese?
I should also not that Tinder has released a PWA which is getting great engagement. I expect them to start phasing out their app like other platforms soon.
Tinder is also the only non-media streaming app. If you look at the top dating apps the next 4 account for $235M.
These 10 apps account for about 10% of the overall AppStore revenues, which speaks volumes to me.
Note this list does not include the Major League Baseball package, which I also know drives millions in revenue each season. But the point is streaming subscription services account for a large percentage of Apple's revenue.
Mobile games account for 77% of app store revenues, about $55 billion. That leaves about $16.6 billion for other apps. A large chunk of that is subscription services.
For the record games account for the majority of app downloads too.
So if you are making a game, then mobile apps are probably a reasonable avenue.
A recent stat shared on CNBC says Apple claims to have generated $155 trillion USD in sales since AppStore creation. That is distributed among 23 million developers. This means the average developer has earned around $6700 over the last decade.
That is not much at all. Of course we know the bulk of the revenue was earned by the top 1% or so applications. We know very few apps are downloaded and even fewer used more than once. Hence 1% or fewer actually earn revenue.
Apple's Advantage Against Competition
Another argument Spotify makes against Apple is their distinct advantage over competition like Spotify, Pandora, Amazon Music, etc. These non-Apple services have to pay the Apple tax, and Apple does not. This means Apple is immediately more profitable than the competition can hope to be.
The other advantage is Apple can hold up their application updates, deployments and of course access to undocumented APIs. I can't say if Apple has restricted access to APIs or not, so I wont comment much on that. But I could see them doing this, others have in the past.
I do know Apple does create lots of frustration and friction for deploying apps to the store. This includes new applications and updates.
The 4.2.6 rule gives them free range to almost 'randomly' reject any app anytime they feel like doing so. Personally I think they made the rule intentionally vague so they could create artificial interference with apps they just don't like.
Of course Apple claims they create a safe, trusted environment for their customers, etc. The web is a safe place. One of the reasons web standards take so long to bake and implement is the fight for secure implementations. So I don't see any real 'security' advantage native apps have over the web.
Here's the thing...
Should you outsource the control of your app or your business to a third party like this? It is not always clear, but in most cases no. There is too much to risk.
What if they cut you off, without warning?
You're done.
And Apple does have a history of doing just that.
But they can also make it difficult for you to even deploy updates. I know I have spoken to numerous developers and companies since the AppStore was created lament the fact that even under perfect circumstances it takes 2 weeks to get an update deployed to fix a bug.
Blocking updates is another major aspect of Spotify's complaints. I know they are not alone, I talk to app owners all the time that express frustration with long update cycles and rejections. It is a trail of frustration for many.
On the web, you find a bug, fix it and deploy an update as fast as you can. That could literally be a couple of minutes to just under an hour if you have your ducks in a row, and it is not a major bug of course.
I know some sites update 1500 or more times a day. Try that with your native app.
Apple Responds, but Doesn't Provide a Good Argument
Apple has stepped up its public response to Spotify by posting its own page on the controversy.
In this response Apple claims it owns the store and puts forth the effort to only have high quality apps that are safe and secure.
I have no issue with the notion of safe, secure and protecting privacy. The web has all that as well, so the AppStore has no advantage here.
The real problem lies in their ambiguous App Store Review Guidelines. Of course, in those guidelines they specific an app must be ‘app-like’. This is where they reserve judgement to kick any app they simple do not like.
In their principles and practices response Apple also proudly shares the fact they reject an average of 40,000 app submissions and updates each week. That is 40% of the weekly app submissions.
They also field over 1000 appeals for rejections or removals.
Compare this to the web which allows unlimited deployments a day. Some applications update as many as 1500 times a day.
Deploy a bug, it sucks, but I can quickly fix and redeploy. Sometimes these updates can deploy within minutes.
Good luck doing that with Apple in the way. Developers I speak with tell me they expect 2-4 weeks before bug deployments are actually released in the store.
Not to mention you are subject to the Apple censors to determine if your app is worthy of being presented to consumers. They really do not believe in consumer choice, it is their choice to determine what is best for the consumer.
On top of that they make it difficult to compete with the apps that ship with the iPhone and iPad.
Summing It Up
I get why Spotify has filed a complaint. I don't like they decided to get a government entity involved to fight their battle.
They and other streaming services should be brave enough to follow Netlix's lead and just abandon app store payment as an option.
Spotify should also start an aggressive path toward becoming a progressive web application. I realize there may be a technical hurdle for now preventing a good mobile experience, but that can be overcome with some effort. This is one of the very, very few edge cases where an app is limited to native. 99% aren't.
The video streaming services don't really need native apps. So for now Netflix and other video streaming services have the freedom to migrate from their native apps and the restrictions imposed by the stores.
Audio services are still at a disadvantage until we get a supported API to allow audio to play after the lock screen engages.
This is a great opportunity and incentive for Spotify, Pandora, Audible, Stitcher and other audio services to join the W3C working groups and help define a specification to allow audio to play as a background service in the browser.
Spotify is not profitable at the moment and at a disadvantage on iOS because Apple does not have the 30% tax imposed on themselves.
But that is Apple's prerogative, it is their platform they can do what they want. By supporting a common standard on the web Spotify could move away from Apple's platform and maybe force Apple to add support for a great new capability.
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Everyone likes music. The tempo of life is getting faster and faster. Often there's no time to go through an entire list of music tracks and purchase the ones you like. Fortunately, audio streaming applications have changed the way we listen to music.
With modern technologies, we get effortless user experience and receive music in a matter of clicks. Mobile devices and a stellar speed Internet connection only compliment this trend.
If you want to learn more about music streaming apps or create a music app, this article is right for you. Below, we share the music streaming market statistics, song streaming app monetization strategies, and how to make a music app like Spotify.
Read on!
5 Steps to create an app like Spotify
Step 1. Consider the main Spotify-like app features
A music streaming app includes such features as registration and signing up, music organizing, music discovery, social sharing, push notifications, and music library.
Spotify Free Music App
Step 2. Choose licensing type
As for Spotify, the platform has two types of licenses including Sound Recording License Agreement and Musical Composition License Agreement.
Step 3. Find music app developers
Choose a team that will build an app like Spotify for you. There are a lot of factors for you to consider. You also should check the portfolio of your music application development company.
Step 4. Develop an audio streaming app UI/UX design
Now, you and your development team should agree on how the future app will look. For that, you need to create an app Wireframe, Mockup, and Prototype.
Step 5. Create audio streaming app MVP
At this stage, you will decide on your MVP (minimum viable product), and all the other details with your development team and you are ready to go.
Why consider music streaming
If we're talking about music services - there are typical online radio stations and music streaming services, like Spotify. That's how people enjoy quality, easy-accessible sound spots.
What's more, people globally shift to their mobile devices to do pretty much anything. Phone calls only use a fraction of the time people spend on their cell phones.
But there is more!
- The global music streaming market is growing steadily — the global subscriber base is expected to reach 2.81 billion by the end of 2025.
[Image source: Goodwater]
- Music Streaming Application Market is expected to reach $17.50 Billion by 2025
- Statista said 14% of the population use paid music streaming services several times a day.
[Image source: RIAA]
- There are 186.7 million digital music users in the U.S.
- Spotify has over 200 million active users, more than 109 million paid subscribers, and about 40% of the global music streaming market
Did I mention that 72% of Spotify users are millennials, who, it seems, were born with mobiles in their hands?
Driven by advantageous technologies, the music streaming industry continues to grow. Therefore, the development of your live audio streaming app might be a great idea.
Current Leaders of the Sound Streaming Market
There are three leaders in the sound streaming market, including
- Spotify with 36% market share
- Apple Music with 19%
- Amazon Music counting 12% market share
Now, let us take a closer look at each of them.
[Image source: MIDA]
Spotify
Being a pioneer in the music-streaming market, Spotify is the best-known music app. The app has 109 million premium subscribers and 232 million monthly active users.
App users receive access to different music services. They include Discover Weekly playlists and experimental ones, like the Australia-only station.
Spotify has Facebook integration, which allows users to share with their Facebook friends. Besides, this feature enables Spotify users to share their music easier than competitors.
[Example of Spotify interface]
Apple Music
Apple Music is the second most popular music streaming app. It provides users with plenty of features and a discount for families and students. In June 2019, Apple Music had over 60 million paid subscribers, and 50 million songs in the library. All Apple devices, including Apple HomePod, are compatible with this app. Still, unlike Spotify, the app does not have robust sharing options.
[Example of Apple Music interface]
Amazon Music Unlimited
Amazon Music is an advanced version of Amazon Prime Music, provided to Prime subscribers for free. For an extra payment, users receive access to an expanded catalog. Amazon Music recommends playlists grouped around artists the user already listened to. Also, the app shows the song lyrics on the 'now playing' screen.
[Example of Amazon Music interface]
To conclude, Spotify is not alone in this online music thing. Other significant players are Apple Music and Amazon Music.
All music streaming services have a lot of benefits, including:
- Quick access to music
- Affordability
- Unlimited storage
- Social engagement
As you can see, all these services appear to be outstanding because of these common features- they are effortless, intuitive, and easy to use.
The Killer Idea Behind Spotify
To give you a clear idea of how to start a music streaming service, let's discover the inner logic behind Spotify.
- Spotify stores music on various servers
- To stream a random track on your mobile, Spotify finds it on one of the millions of servers and sends it to your device
- Servers, in this case, are computers and all other gadgets of Spotify's subscribers
This concept is more effective than hitting servers with requests to download the track. At the same time, you become an essential link for the global social music sharing network, which is engaging too. And, it enables users to listen to all this music legally by paying royalties to authors.
Now, let's learn how to build a music streaming app and make it profitable.
How to Make Money with a Spotify-Like App
Music streaming services, like Spotify, have two main ways of earning; premium account and running ads. Let's check how Spotify applies these strategies.
[Image source: Statista]
Premium Services
The premium Spotify account provides users with free access to unlimited music across other devices. Besides, the app allows temporary downloading of songs for offline access and plays the highest quality music. There are several types of paid plans, including:
- Student plan cost $4.99 per month
- Regular account - $9.99 per month
- Family account - $14.99 a month
Ad-supported Services
App users with a free account can listen to a limited among of songs on demand, which may be interrupted by an advertisement. By using this business model, Spotify charges advertisers a cost-per-click and cost per mile fee.
According to their site, Spotify spends a significant chunk of money to pay royalty rewards to artists.
[Image source: Statista]
Read also: How Do Apps Make Money?
This concludes how to earn with your Spotify clone. You have to become a part of 'back to paid music' preachers, deal with authors and provide your users with a good deal of music value for their membership.
Critical Features to Include in a Spotify-Like App
If you are looking for ideas on how to make an app like Spotify, consider the following app features:
Registration / signing up
First, a user should be authorized to use your system. Users can register in Spotify via email or social media like Facebook.
Make sure you take this step very effortless for users. Connect it to social media and you get new subscribers in a matter of taps.
Music organizing
The app should provide features of grouping one's music, etc.
So, users can create playlists for different purposes, like current activities and genres.
Music Discovery
To motivate users to engage with your app more often, you need to provide them with personalized content. And here is where Spotify has a great competitive advantage over other services.
Spotify uses an AI-based recommendation algorithm that selects songs for the Discover Weekly section. Spotify developers created their own powerful discovery engine.
Let us check how it works.
For Weekly Discovery recommendation, Spotify uses three types of recommendation models, including:
- User crossovers with the listening history of other users
- Natural language processing. In Spotify, this technology works on the Echo Nest API. It learns about the music genres by analyzing the text and looking at similar terms associated with the artist across the Internet. Kafka manages the data in real-time.
- Deep learning to analyzes the raw tracks. For this, Spotify applies' convolution neural network.' This deep neural network learns from experience using only raw data input.
All things social
This feature allows users to share songs with friends and highlight favorite tracks on a social feed. It's also going to serve your app with a good deal of word-of-mouth advertising at the same time.
Read also: How To Develop a Social Media App?
![Free Free](/uploads/1/3/4/0/134050422/963155652.jpg)
Push notifications
Push notification is a deciding feature for such a social community based on follow-ups and spreading content. People want news from their favorite sources; that's how it works now - users wish to have valuable personalized benefits from your service.
Music Library
Unfortunately, this feature is absent in Spotify. Because of this, users can not host or upload their tracks and create a music library. The only option is to create personal playlists and subscribe to music channels created by other users.
At the same time, this feature is available in Apple Music. It allows users to add and synchronize songs on their devices and in-app playlists. Users can store a certain amount of songs on their app for free or upgrade to a premium plan.
To give you a clue of how to make a music app, and even better app than Spotify, consider this function as well.
Now, let's find out, how to build a music app.
Where to Start: Your Guide to Making a Music App like Spotify
Now, let's dig deeper into the process of music streaming app development. Below, we share a step-by-step guide on how to make a music streaming app, together with cost estimations.
Spotify History Web App
Check this out.
Ideas are everything
For music app development, you need to specify the whole concept of the app. In order to do this, find a similar application, and of course, think of something that makes your app special.
Licensing
When developing a music streaming service, you need to get a license to provide your subscribers with legal audio content.
As for Spotify, the platform has two types of licenses for music distribution, such as:
- Sound Recording License Agreement, covering recording rights. Spotify uses licenses received from the big three record labels - Universal Music Group, Sony Music Entertainment Group, and Warner Music Group.
- Musical Composition License Agreement. This covers the rightful owners of the songs, managed through two main firms in the U.S.-BMI and ASCAP.
When looking for an answer on how to make your own music app, do not forget to get such a license.
Find music app developers
Now it's time to come to the actual work and choose a team that will build an app like Spotify for you. There are a lot of factors for you to consider. To estimate how much it costs to develop a music app like Spotify, check developer rates among regions:
- USA/Canada-based dev teams - $50 to $250/hour
- Western Europe - $30 to$170/hour
- Eastern Europe - $25 to $150/hour
- Australia - $50 to $150/hour
- India - $10 to $80/hour
You also should check the portfolio of your music application development company. From the beginning, communicate with your team to make sure you're on the same track. At the APP Solutions, we usually hold meetings with our clients on a regular basis via Skype.
See also: How to Outsource App Development?
Plan & Estimate
This market has significant potential, but that's not enough to run and spend all you have for a killer application. You need to run a study and learn about your target audiences' preferences. Then, communicate your business idea to your development team. The team will come up with some technological solutions, cost estimation, and project requirements.
Develop an audio streaming app
UI/UX design
Now, you and your development team should agree on how the future app will look. Here, you can offer the design team some ideas, if you have them.
Spotify Web App History App
The necessary process of the music app design creating includes the following stages.
- Wireframe. The team will create a black and white app that shows the general concept of the app.
- Mockup. The team develops colorful but static screens of the future app. Mockups include icon design, button shapes, spaces, etc.
- Prototype. The team creates an interactive model of the app that shows how the app acts. As a rule, prototypes give you an option to tap, swap, drag, and see the result.
Choose tech stack
To develop your Spotify-like app, consider Spotify developer tools, like Python and JavaScript. Besides, Spotify uses PHP for the server-side and Java for back-end structure. As we said, Spotify stores all the music files on the device cache. For this, use Cassandra, PostgreSQL, as well as a general memory caching system.
When looking for a clue on how to create a music streaming service, take into account that Spotify uses the following technologies:
- Kafka software for real-time data management and processing
- GraphWalker for model-based tests and Python integration
- Amazon S3 for cloud-based music streaming
- Dataproc for platform infrastructure
- Chromium embedded framework for building UI for desktop application
- Bootstrap for web app development
- Nginx as open-source HTTP and proxy server
- C++ for Windows/Mac clients
- Java for Android music streaming app
- Objective-C for iOS music streaming app
How to make a music streaming website?
You can empower your app with Spotify players by integrating Spotify player SDK. This library contains classes to stream management and audio playback. It takes on all the negotiation with Spotify's back-end, digital rights management, and decoding.
[Spotnews screens]
We did such integration for our recent project, SpotNews. SpotNews is an audio streaming platform that provides personalized music content. The idea behind the app is to allow users to listen to their favorite songs while reading the news sections.
We also used:
- Spotify SDK for authorization via the Spotify user profile
- Java Android SDK, Retrofit, Fresco, Crashlytics, and Realm to provide smooth app performance
- PHP, Silex, MySQL, Composer HTML5, CSS3, Twitter BootStrap, Jquery, Bower, Less, Nginx to moderate the news feeds via the Admin Panel
Spotify Web Player
You might also like: HOW MUCH DOES IT COST TO DEVELOP A CHAT APP LIKE SNAPCHAT IN 2019
Create audio streaming app MVP
At this stage, you will decide on your MVP (minimum viable product), and all the other details with your development team and you are ready to go.
When looking for ideas on how to create a music app, consider the following features for your music streaming app MVP:
Feature | Integrations | Estimation in hours |
Registration / signing up |
| From 32 hours |
Profile user |
| From 36 hours |
Social Share | From 15 hours | |
Personalization | Pick-up algorithm that will choose the next music track for each individual user. Use ML to find appropriate songs for users | From 100 hours |
Music player |
| 70 |
Track search |
| From 32 hours |
Playlist manager |
| From 60 hours |
Total | From 345 hours |
Spotify App For Windows 10
The average development cost of a music streaming app like Spotify is about $40-50K per platform.
For a more detailed estimation, you can use our project cost calculator. Now you know how to create a music app like Spotify.
You might also like: HOW MUCH DOES IT COST TO MAKE AN APP?
Take it to the test
After the application is ready, the team does in-depth testing to ensure the app runs smoothly. We usually implement it right after the app is prepared and approved. Plus, three months after release our developers can fix any issues occurred for free.
Wrapping up
The music streaming app market is growing, and its revenue is expected to reach $17.50 Billion by 2025.
Spotify is the leader among music streaming apps. It uses a raft of modern technologies to provide users with relevant music content.
While music streaming is a hot trend, you have a chance to get your share of the music streaming market, as Spotify did.
Free Spotify App
But, to achieve success with your app, and be ahead of competitors, you need to get started asap.
The last thing that remains is to find a development team. And we are here to help.