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

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

#121

Earlier quoted context omitted.

What monopoly does Apple have? They don’t have a majority share of any platform. Any app makers not happy should boycott the platform and just release Android apps. Of course, they’d also need to avoid the Google Play store as they have pretty similar rates to the App store[0] [0] https://support.google.com/googleplay/android-developer/answ...

AFAIK that's not how it works. For example go look up Microsoft's monopoly. The commonly held believe is Microsoft was declared to have a monopoly on personal computer OSes but that is false. Microsoft was found to have a monopoly on OSes for Intel based machines. So by that same logic Apple has a monopoly on OSes for A series (A10, A11, A12) based smartphones. https://en.wikipedia.org/wiki/United_States_v._Microsoft…

Can a company have a monopoly over its own products? That doesn't make sense.

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

#122
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…

I am in the same boat. For most things I will happily subscribe through iTunes and pay extra because I know that I can go to one place to manage all my subscriptions.

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

#123
post #68
post #19

The Apple store seems good for small apps because the “tax” pays for discovery/marketing, distribution, billing & payment, lends credibility to the application, etc. This is especially true for single purchases. Recurring revenue is a much different proposition— even for small or first time apps. A player like netflix which handles it’s own marketing, payment and all other ancilliary services doesn’t need to anything…

> The Apple store seems good for small apps that is fine if you ever show up as featured. Which is 1% of the apps, and even then, from already big companies after they spent the marketing money. Other than that, for distribution (really?) and payment, there are tons of alternatives/competition the small apps cannot even consider. App store is nothing other than a racketeering scheme where you have to pay if you can't…

In the past, you bought software in a box from a retailer who took a margin as high as 50%. After you pay for manufacturing and distribution (shipping shrink-wrapped boxes of CD-ROMs, multilingual manuals and a unique serial number to retailers in Alaska and Singapore is definitely not free) a developer would be lucky to end up with one third of the retail price in their pocket.

The Apple app store is actually a huge improvement over that model; it just seems unfair because digital sales shouldn't cost much, right? Right??

Well, Apple created the marketplace. They spend a lot of money making that marketplace work correctly, keeping their software platforms and merchant facilities robust for customers and developers, and putting that marketplace in the hands of hundreds of millions of people. They built this opportunity for devlopers and every developer who has built an app did so knowing exactly what the terms were.

If you don't like it, don't complain after you voluntarily and knowingly agreed to the terms.

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

#124

I find it hard to blame anyone for leaving any store when there has been almost nothing of value added in years and things are even regressing. That 30% should have gone a lot further; after 10 years, I can’t even use two different search-and-sort criteria at once to find new apps (and I refuse to sit there and scroll through offensively-bad lists of useless results, much less buy them). I am however not surprised by…

I find it hard to blame anyone for leaving any store when there has been almost nothing of value added in years and things are even regressing. That 30% should have gone a lot further

It's not really a market if the seller thinks there's no alternatives, and the buyer has no choice but to put up with anything. Works the other way around, too.

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

#125
post #74
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…

I could not disagree more. It requires 5+ taps and just as many obscure screens to cancel a subscription to an iOS app. If Apple were really serious, they would have an app called Subscriptions.

App Store -> Profile Pic -> Manage Subscriptions

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

#126
post #4

Earlier quoted context omitted.

I’m an Apple fan all around. (Even own a homepod). But I have to disagree with “cancelling is easy”. Cancelling a subscription on iOS is so hidden that I can’t say it’s easy. I hope they change this.

You go to the App Store (logical place to look), tap your profile pic (a standard way of communicating "my account"), and tap your name in the menu. You'll arrive at the Account Settings page which has an obviously labeled Subscriptions button. Once there, subscriptions are neatly sorted into active and expired. Clicking on a subscription instantly shows you all options, you can change among them and get a full prora…

> I've never seen a simpler and more straightforward billing UX as Apple's.

I don't like how it doesn't show the purchase method on the TouchID screen - it's fine if you are using it a lot, but if you only use it infrequently, it's annoying to not know which payment method it is using.

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

#127
post #115

What happens if Apple bans Netflix and provides a steaming and alternative? I guess Netflix can sue them, but in the meantime will lose a lot of money.

Ban them for what? It's not like Netflix is refusing to pay the tax and keep using a feature.

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

#129

Wow, 30% for the first payment and then 15% for each renewal? Apple should have custom rates for large volume subscription apps. The fact that they didn't just cost them several million dollars at least.

I thought they recently announced they were moving to such a system for large businesses (i.e. Netflix and Spotify), basically to avoid this exact scenario where those business drop the Apple payment platform altogether.

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

#130

I find it hard to blame anyone for leaving any store when there has been almost nothing of value added in years and things are even regressing. That 30% should have gone a lot further; after 10 years, I can’t even use two different search-and-sort criteria at once to find new apps (and I refuse to sit there and scroll through offensively-bad lists of useless results, much less buy them). I am however not surprised by…

I find it hard to blame anyone for leaving any store when there has been almost nothing of value added in years and things are even regressing. That 30% should have gone a lot further It's not really a market if the seller thinks there's no alternatives, and the buyer has no choice but to put up with anything. Works the other way around, too.

It's not a market. It's like a shopping mall on a cruise ship—you chose to go on this cruise, and if you don't like dealing with the ship as a monopoly vendor, you can get off the ship and buy whatever you like from wherever.

Just because this cruise happens to be the nicest, most comfortable vessel in the sea doesn't mean you have a right to expect space to be reserved on the ship for competitor's stores.

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