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Regulators probe Apple 30% subscription plan

reuters.com

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Re: Regulators probe Apple 30% subscription plan

#71

Post by trotsky »

danilocampos wrote: post #27

If we're going to believe this website, looks like Apple will let you keep $3 more per $100 than PayPal and $11.50 more than credit card processors, assuming a $1 subscription fee like The Daily's: http://feefighters.com/paypal-calculator Maybe regulators should probe those guys. (Credit to @schwa on this one: https://twitter.com/#!/schwa/status/38676753316708352 )

It is interesting how the micropayment zeitgeist has evolved

- Micropayments are not possible because fees and rakes amount to unsustainable cuts

- In some specific verticals (self published, digital) some micropayments are able to thrive despite the large cuts.

- Platform provider responds to those verticals by enforcing a micropayment fee structure on any transaction size

Re: Regulators probe Apple 30% subscription plan

#72

Post by jonbro »

trotsky wrote: post #71
danilocampos wrote: post #27

If we're going to believe this website, looks like Apple will let you keep $3 more per $100 than PayPal and $11.50 more than credit card processors, assuming a $1 subscription fee like The Daily's: http://feefighters.com/paypal-calculator Maybe regulators should probe those guys. (Credit to @schwa on this one: https://twitter.com/#!/schwa/status/38676753316708352 )

It is interesting how the micropayment zeitgeist has evolved - Micropayments are not possible because fees and rakes amount to unsustainable cuts - In some specific verticals (self published, digital) some micropayments are able to thrive despite the large cuts. - Platform provider responds to those verticals by enforcing a micropayment fee structure on any transaction size

I think that the way to deal with micropayments is to sell them in bundles, like xboxlive points (MSDollars?). I could see amazon getting behind this with other platforms. Having your own currency is really nice for lock in, etc.

Re: Regulators probe Apple 30% subscription plan

#73

Post by xentronium »

neild wrote: post #54
falcolas wrote: post #38

Earlier quoted context omitted.

The problem is Netflix can't offer their content to Apple customers at $13, and everyone else $10. Apple using their position to remove those options you say consumers have.

Sure they can: Charge $13 for Netflix with iOS streaming, or $10 for Netflix with no iOS streaming.

I'm almost sure this kind of trick won't help your app get validated.

Re: Regulators probe Apple 30% subscription plan

#74

Post by xentronium »

flyingyeti wrote: post #35

Is it against the rules to offer a different service to iOS devices than you do to Android, Web and/or PC users? For example, maybe Netflix could make "Netflix Premium" available on iOS devices, and charge $12/mo instead of $9/mo, covering Apple's 30% cut. I'm sure this has been considered, but I'm not seeing where exactly.

> I'm sure this has been considered, but I'm not seeing where exactly.

Your app needs to get validated. Bazinga.

Re: Regulators probe Apple 30% subscription plan

#75

Post by richcollins »

bryanallen22 wrote: post #22

Google Launches New Web Referral Program Google today announced a new Web Referral program as part of their search engine. Indexed web pages that accept payment will be required to accept Google Checkout as a payment option. Google Checkout payments now give Google a 30% cut per transaction. CEO Larry Page stated, "Our philosophy is simple - when Google brings a new buyer to the web page, Google earns a 30 percent sh…

I don't see how that is an argument to get regulators involved (if that is the point that you're trying to make)

Re: Regulators probe Apple 30% subscription plan

#76

Post by bryanallen22 »

richcollins wrote: post #75
bryanallen22 wrote: post #22

Google Launches New Web Referral Program Google today announced a new Web Referral program as part of their search engine. Indexed web pages that accept payment will be required to accept Google Checkout as a payment option. Google Checkout payments now give Google a 30% cut per transaction. CEO Larry Page stated, "Our philosophy is simple - when Google brings a new buyer to the web page, Google earns a 30 percent sh…

I don't see how that is an argument to get regulators involved (if that is the point that you're trying to make)

There are good arguments elsewhere in this thread. I'm just pointing out a scenario I haven't seen discussed much: What if all powerful tech companies started wielding their power as an offensive weapon?

Oracle wants a cut of JVM delivered content, Microsoft wants a premium on content that passes through their APIs, etc.

Re: Regulators probe Apple 30% subscription plan

#78

Post by zzleeper »

ghshephard wrote: post #64
zzleeper wrote: post #56

Earlier quoted context omitted.

I don't think they "shot themselves in the foot" in terms of profit. If they actually have a dominant position in the market (kinda true for ipads), then Amazon and the others will accept Apple's terms. That means that EVERYONE ELSE will subsidize Apple prizes (since they have to sell their products at the same prize as in the ipad). With that subsidy, Apple can choose to lower the prices of ipads, thus cementing it'…

Netflix, Kindle, and other resellers will not be able to operate on the iPad. The 30% number eliminates their entire margin. Therefore they will abandon the platform - rocketing up Android in popularity. I think this is Apple's Plan (To have those resellers abandon their platform) - because they want to have a "Walled Garden" in which they are the only content sellers. The only problem is that there are a _lot_ of us…

So in that sense, this is a smart way to prevent their competition from using the platform, without ringing so many antitrust alarms. (If Apple just said "we banish Netflix and Kindle because we say so", it would probably lead to a few antitrust investigations)

Re: Regulators probe Apple 30% subscription plan

#79

Post by mattparcher »

bryanallen22 wrote: post #22

Google Launches New Web Referral Program Google today announced a new Web Referral program as part of their search engine. Indexed web pages that accept payment will be required to accept Google Checkout as a payment option. Google Checkout payments now give Google a 30% cut per transaction. CEO Larry Page stated, "Our philosophy is simple - when Google brings a new buyer to the web page, Google earns a 30 percent sh…

I have difficulty defending Apple in this matter, but yours is an inaccurate comparison.

Google did not create the internet. On the other hand, Apple created the iPhones, iPads, and iPod touches on which these apps (potentially) thrive, and has gone to great lengths to support app developers.

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