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Netflix stops paying the ‘Apple tax’ on its $853M in annual iOS revenue

techcrunch.com

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Re: Netflix stops paying the ‘Apple tax’ on its $853M in annual iOS revenue

#41

Post by nxc18 »

writepub wrote: post #30

It's ludicrous for Apple to state they somehow increased business for Netflix, because they allowed "sign-up" via iOS. That's like Google claiming they allowed sign-up via chrome, or AT&T claiming they allowed sign up via their Network. Apple adds ZERO value via the app store, both for devs and for the consumers.

Not having to deal with separate payment accounts is a huge value add at least for some consumers. I bought HBO to watch Westworld season 2 on Google play. If it wasn't that easy I would have made the effort to find someone's account - still easier than an account and payment workflow.

HBO made at least.7x$40 from me.

Re: Netflix stops paying the ‘Apple tax’ on its $853M in annual iOS revenue

#42

Post by andrewmcwatters »

ocdtrekkie wrote: post #24

2019 may be the year the 30% cut officially dies. All in the last few months: - 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…

Good, now if we could only download apps without being on the App Store.

Sure, continue the tax for those using it for promotion purposes, but abolish the requirement to use it all together.

Re: Netflix stops paying the ‘Apple tax’ on its $853M in annual iOS revenue

#43

Post by pfranz »

Laforet wrote: post #20
skh wrote: post #2

I wonder how much money it costs Apple to handle subscription payments/cancellations for Netflix and other streaming services. I prefer to handle subscription through Apple because cancelling such services is never difficult. I don’t know how it is on other countries but cancelling services in the U.S. can be a hellish experience. Personally, I’d be willing to pay the “Apple Tax” on top of a subscription services’ co…

From what I heard from ios developers, the cost is a resounding "nothing"; any cancelled or fraudulent orders are simply taken out of Apple's monthly remittance to you. Details are usually wittheld for privacy reasons. It may be great for consumers but it's been a constant headache for devs and publishers since the beginning of the App Store because it's very hard to work out the source of any shrinkage. Netflix is p…

While I sympathise with people trying to run a business, as a user I'm incredibly grateful not to be harassed by current and former services. I have a bunch of Netflix emails saying, "Please come back!" and "Try Netflix again for free!" as well as half a dozen that all say "Netflix tonight?" Too many bad actors ruin it for everyone and I don't think people fully appreciate what Apple does to protect their attention.

I loathe the constant spam (from reputable merchants) and junk snail mail I get every day. Every few months I spend 20 min unsubscribing and refiltering email. Most people I know just let it clog up their mail app. I probably spend at least the same amount of time with junk mail.

I realize it's difficult for an advertiser to reach me for actually useful things. But when I travel and see TV adverts, I'm glad I'm not constantly reminded that I should give luxury cars as Christmas gifts or how awesome shower gel is. I'm not interested in refinancing my mortgage every month or consolidation of debt I don't have. I don't care that my cellphone provider is broadcasting a NYE live show or the last car dealership I bought a car from wants me to switch insurance companies.

Re: Netflix stops paying the ‘Apple tax’ on its $853M in annual iOS revenue

#44

Post by [deleted] »

tomp wrote: post #36
notatoad wrote: post #27

Earlier quoted context omitted.

Apple's next move is to compete by charging reasonable rates, instead of completely unreasonable ones. Netflix is a low chargeback risk, high volume customer and should expect to be paying 1.5-2% for an initial charge and even less for continued payments on the same card. Apple is charging 30% for the first year of payments and 15% after that. 30% is reasonable for an app from an unknown dev where the platform might…

What do you mean, “refund”? Is there a way to request a refund for an app you bought? AFAIK there’s no way to “trial” an app...

[deleted]

Re: Netflix stops paying the ‘Apple tax’ on its $853M in annual iOS revenue

#45

Post by test022a »

soneca wrote: post #33

Why call it "tax" if it is a fee? The article shows numbers based on a 30% fee when it explicitly says it is actually 15%. "meaning Apple was making around $700,000 by doing nothing other than allowing Netflix to offer subscriptions in its app" It seems a bit unfair also. I have no horse in this race, but the author seems to have

And that's $700,000 per day (or actually $350,000).

Netflix has paid Apple over $250 million (at the 15% rate) to have their app in the store -- definitely seems like a tax.

Re: Netflix stops paying the ‘Apple tax’ on its $853M in annual iOS revenue

#46

Post by suninwinter »

tomp wrote: post #36
notatoad wrote: post #27

Earlier quoted context omitted.

Apple's next move is to compete by charging reasonable rates, instead of completely unreasonable ones. Netflix is a low chargeback risk, high volume customer and should expect to be paying 1.5-2% for an initial charge and even less for continued payments on the same card. Apple is charging 30% for the first year of payments and 15% after that. 30% is reasonable for an app from an unknown dev where the platform might…

What do you mean, “refund”? Is there a way to request a refund for an app you bought? AFAIK there’s no way to “trial” an app...

https://m.imore.com/how-to-get-refund-itunes-app-store

tl;dr Go to http://reportaproblem.apple.com/, sign in and pick the app that you want a refund for. Then fill out the questionnaire.

Re: Netflix stops paying the ‘Apple tax’ on its $853M in annual iOS revenue

#47

Post by freedomben »

lathiat wrote: post #39
adrr wrote: post #38

Earlier quoted context omitted.

I'd consider it a tax. You can't support billing in your app for digital services unless you're willing to pay that a percentage of your revenue. So the workaround is to push people to the safari app to enter in their credit card info.

Apple policies explicitly forbid this. While you can use subscriptions from on the website, the app cannot in any way suggest that you do that, nor can it link to a page that directly (one click away) lets you do it.

Wow, that's interesting. Suddenly the class action lawsuit against Apple claiming they've abused their monopoly makes a lot more sense (not saying I agree with it, just that it makes more sense. I neither agree nor disagree: I'm way too ill informed to have an opinion).

Re: Netflix stops paying the ‘Apple tax’ on its $853M in annual iOS revenue

#48

Post by ronsor »

tomp wrote: post #36
notatoad wrote: post #27

Earlier quoted context omitted.

Apple's next move is to compete by charging reasonable rates, instead of completely unreasonable ones. Netflix is a low chargeback risk, high volume customer and should expect to be paying 1.5-2% for an initial charge and even less for continued payments on the same card. Apple is charging 30% for the first year of payments and 15% after that. 30% is reasonable for an app from an unknown dev where the platform might…

What do you mean, “refund”? Is there a way to request a refund for an app you bought? AFAIK there’s no way to “trial” an app...

Apple lets you manually request a refund in certain cases.

Re: Netflix stops paying the ‘Apple tax’ on its $853M in annual iOS revenue

#49

Post by goldcd »

wrkronmiller wrote: post #37
writepub wrote: post #30

It's ludicrous for Apple to state they somehow increased business for Netflix, because they allowed "sign-up" via iOS. That's like Google claiming they allowed sign-up via chrome, or AT&T claiming they allowed sign up via their Network. Apple adds ZERO value via the app store, both for devs and for the consumers.

What Apple adds is non-zero. As the parent comment points out, Apple offers discovery, billing, and distribution. The App Store is a single (theoretically trusted) place for iOS users to search for apps. Let's not forget that, at least in theory, Apple curates the App Store. Neither Chrome nor AT&T does that in any substantial way. Furthermore, Apple's business model is different from Google/Android's. Android can be…

I'd agree - Apple handling payments/fraud/refunds and all the rest has value. Where they don't have a value proposition is with the larger providers of content. People turning up and wanting to buy your product (and not caring how it's provided to you) Same issue has been seen within PC gaming for many years - most consumers would quite happily add games to their Steam library - but Ubi, EA, Blizzard, Bethesda, Rockstar blah blah blah all nudge/command you to buy from their own shonky store.
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