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Regardless of what is a 'fair' fee, what happens when the handful of apps that generate the vast majority of revenue move their transactions away from the marketplace?
What is Apple/Google's next move?
Was it a mistake for Apply to set the precedent that they will not take action against large tech firms that do this? Regardless of what is a 'fair' fee, what happens when the handful of apps that generate the vast majority of revenue move their transactions away from the marketplace? What is Apple/Google's next move?
- Epic Games refused to release Fortnite via the Play Store
- Valve lowered it's cut from 30% for major publishers to keep them from leaving
- Epic Games then announced a store with a 12% cut for PC and Android (the latter coming in 2019)
- Discord followed by announcing a 10% cut
- Netflix has pulled out of paying Apple's 30% cut
- There's a pending antitrust case against Apple's Store that has, on procedural grounds, already made it to the Supreme Court
Was it a mistake for Apply to set the precedent that they will not take action against large tech firms that do this? Regardless of what is a 'fair' fee, what happens when the handful of apps that generate the vast majority of revenue move their transactions away from the marketplace? What is Apple/Google's next move?
Innovate. Cannibalize existing products. Surprise us. Unless they want to attract more of the "business" types that will suck them dry until they end up, one day, a long time from now... like Sears.
Was it a mistake for Apply to set the precedent that they will not take action against large tech firms that do this? Regardless of what is a 'fair' fee, what happens when the handful of apps that generate the vast majority of revenue move their transactions away from the marketplace? What is Apple/Google's next move?
Was it a mistake for Apply to set the precedent that they will not take action against large tech firms that do this? Regardless of what is a 'fair' fee, what happens when the handful of apps that generate the vast majority of revenue move their transactions away from the marketplace? What is Apple/Google's next move?
30% is reasonable for an app from an unknown dev where the platform might have to eat a large refund after the dev disappears and the app turns out to have been a scam. charging that same rate to netflix for subscription payments is price gouging, plain and simple.
As the article says, apple was making somewhere on the order of $700k per day off Netflix's transaction fees. For doing basically nothing. Netflix is obviously willing to pay more than basic credit card processing fees for the convenience factor of having in-app billing on iOS, so all apple needs to do to keep that business is to be willing to negotiate.
Was it a mistake for Apply to set the precedent that they will not take action against large tech firms that do this? Regardless of what is a 'fair' fee, what happens when the handful of apps that generate the vast majority of revenue move their transactions away from the marketplace? What is Apple/Google's next move?
- adjust the revenue share percentage to match the perceived value (convenience/UX mostly, but there are others such as marketing, chargeback protection, etc...)
- play hard ball by rejecting apps that "don't comply with our seamless guidelines on the user experience"
- make deals on a case by case basis (ie "if your rev is > $X millions, contact us") or have a volume discount on the revenue share percentage
It all boils down to the same "cost vs value" perception, and that isn't uniform across all apps/developers so it's not very surprising that the "one size fits all" is starting to show its limits.
Apple adds ZERO value via the app store, both for devs and for the consumers.