App Store Fee Cut Attracts Criticism From Major Developers Like Spotify and Epic

[trifid]

It'll be interesting to see what will happen now that the lines are blurring more and more with Big Sur supporting iOS apps, it seems the double standard will need to be addressed, ie Mac OS requires no 30% cut (you can bypass the Mac app store) and still have a safe experience.

 

[archer75]

Like Epic said, Apple makes more money from gaming than anyone else without ever making a game!!

Do they? Microsoft, sony, Nintendo, google and so on all charge the same 30% fee. I'd think they'd be making more. Any ideas on gaming market share compared to the big console makers? Compared to steam?

 

[the8thark]

If this actually is 15% instead of 30%, it will eventually bite Apple in the ass. It's in Apple's best interestes to have as many developers as possible at the same 30%. The law will catch up with Apple in regards to this.

Saying the App store fees are equal for all then pulling this %$#@ is going to get Apple into hot water.

 

[Karma*Police]

<sigh>... this is the age we're living in... everyone wants something for free. The self-entitlement and hyprocrisy run amuck is something that should worry developers far more. After all, if they can tell Apple they're being greedy, why can't consumers demand that developers cut their prices as well? What? You're making 10 million dollars?? You should cut your prices in half! The absurdity and hypocrisy of these developers' requests is mind-boggling.

Here's an idea for all the devs who think Apple is being greedier than they are... Invest some of your profits in AAPL and consider the returns a reduction on your 30% fee.

 

[johnnyrb]

Can we get a list of companies/apps complaining about this charge so that I can stop using their services, not that I did in the first place?

 

[ani4ani]

All I read is Wah wah wah... If you dont like it, get the F*** off Appstore or deal with it!

I appreciate that Apple fanboys are just perfectly happy paying all that extra Apple Tax to get their apps and music subscriptions. It just wouldn’t feel right to them if they weren’t being fleeced in one way or another, in every way possible by Apple.

 

[techortreat]

Well, this is definitely a move to help SMBs which is a good thing in these trying times. So instead of criticizing Apple, shouldn't they be aiming this at Google? I am sure Google will slowly follow suit. One aspect though which applies to both Google and Apple - If you see over the years, most cloud providers have reduced subscription fees based on economies of scale which reduces their overheads and they have passed on the benefits to their clients. So even the 30% at some stage should go down

 

[archer75]

I appreciate that Apple fanboys are just perfectly happy paying all that extra Apple Tax to get their apps and music subscriptions. It just wouldn’t feel right to them if they weren’t being fleeced in one way or another, in every way possible by Apple.

is it an apple tax when everyone else charges the same fee? Why not complain that sony charges the same 30% to game developers?
If apple were charging 40% where everyone else was charging 30% I'd agree with you. But that's not happening.

 

[ruka.snow]

Of course the usual suspects are complaining, developers that make millions of the App Store after starting on the 15% cut will also start complaining when they are earning tens of millions. Big companies don't want fair, they want more profit for selling you a costume in a dying game.

 

[and 1989 others]

Don't like it, don't use it. It is a black and white as that. Apple is a private entity and can do what ever it wants, it is not a public service, its is not funded by tax payers of government.

 

[FHoff]

Spotify and epic need to just fail and go away.

 

[Ethosik]

Small businesses are the ones at risk of not making it through this COVID situation. I know many small businesses that have closed their doors from the shutdowns/lockdowns and all the unemployment going on.

 

[ani4ani]

Do they? Microsoft, sony, Nintendo, google and so on all charge the same 30% fee. I'd think they'd be making more. Any ideas on gaming market share compared to the big console makers? Compared to steam?

Yes, because they all have the cost of development which can run into $M100’s per game, plus the loss-leading hardware costs to cater for and then advertising, distribution etc as well....Apple has basically no real incremental costs at all.

 

[cocky jeremy]

Ok, so exactly what anti-trust law would they be violating? Please cite the statute.

*crickets*

 

[foobarbaz]

Yeah, 15% is way more than credit card processing. It's also worth it, because customers already have an account and credit card ready to spend. And you can sell to kids that got gift cards.

Unless you can convince 85% of potential customers to take the time and (perceived) risk to enter credit card information in an app they've never heard of, you'll still up making *more* money. You can complain about Apple taking "so much money" all the way to the bank …

It's the same reason all those small shops sell on amazon or ebay instead of their own store. It's worth it.

No small dev should even want to go outside the app store for this. That only benefits the big guys …

 

[MacBebe]

So does Apple, really.

To be fair, profit is a goal for corporations. At least they care about the small developers according to the report.

 

[SuperMatt]

I don’t really agree with the guy who was tweeting in the story. Apple does a lot more than process credit card payments for developers.....

Let’s face it; Spotify has squeezed the artists as much as they can, paying them close to nothing, and they still are not making the profits they want. So, they target Apple. I see there are music player web apps... they could have one of those and not need an App Store app at all. Oh, but then they would lose the benefits such as advertising by Apple, placement in the store, and discoverability. Guess Apple DOES provide them a useful service..

 

[Rogifan]

People can hate on Epic and Spotify all they want but there are some legitimate questions around this new program. It’s hard to justify the 30% as reasonable when Apple cuts it in half for 98% of developers. And it’s hard to see it as much more than PR when the majority of App Store revenue is driven by the 2% that won’t qualify for this reduced rate. Also how does this new program support the narrative that the 30% is justified for all these things Apple does for developers? Is it more expensive to review an app that pulls in a lot of revenue? Does that app take up more bandwidth or Apple employee support? Seems like Apple is saying we’re going to charge you more because you can afford it not because your app is more expensive to host/maintain/review/support. It’s like making people pay more in taxes just because they can afford it not because they consume more government services.

 

[ruka.snow]

Yeah, 15% is way more than credit card processing. It's also worth it, because customers already have an account and credit card ready to spend. And you can sell to kids that got gift cards.

Unless you can convince 85% of potential customers to take the time and (perceived) risk to enter credit card information in an app they've never heard of, you'll still up making *more* money. You can complain about Apple taking "so much money" all the way to the bank …

It's the same reason all those small shops sell on amazon or ebay instead of their own store. It's worth it.

No small dev should even want to go outside the app store for this. That only benefits the big guys …

Never mind credit card processing, outside Steam and the AppStore it costs a fortune to pay your VAT and taxes around the world. Apple do it for you. Credit card processing fees are such as small percent of doing business.

 

[archer75]

Yes, because they all have the cost of development which can run into $M100’s per game, plus the loss-leading hardware costs to cater for and then advertising, distribution etc as well....Apple has basically no real incremental costs at all.

They don't all develop games. If you aren't affiliated with sony as a game developer, sony still takes a licensing fee cut. Apple handles advertising and distribution/hosting as well as credit card transactions. There's costs associated with that.

 

[robertcoogan]

It's a step in the right direction for Apple, but after all this time you'd think Epic wouldn't be so eager to appear the part of the fool again.

 

[Krizoitz]

Apple does not allow other markets on iOS. If you want to sell on iOS you MUST use Apple's market.

And Wal*Mart doesn’t let other companies set up independent shops in their stores either. No one is forced to develop for iOS. If they don’t like the rules for doing so they can develop for Android. That’s the choice. iPhones are a package deal. Just like every video game console since forever. And most pre-iPhone phones. Wanted a game on my Sony Ericsson flip phone? Guess where I had to buy it from! It’s simple, if Apples fees are too high, developers can walk away, then no apps for iPhone and either Apple changes their tune or people leave the platform. That’s the choice.

 

[Krizoitz]

Yes, because they all have the cost of development which can run into $M100’s per game, plus the loss-leading hardware costs to cater for and then advertising, distribution etc as well....Apple has basically no real incremental costs at all.

So what your saying is that Apple is better at running their business than Microsoft, Sony, or Nintendo. And they should be punished for that? Yeah, no. Those companies CHOOSE to sell hardware at a loss. No one forces them to do so. It’s a choice they make for their own strategic reasons, but not a reason to punish Apple for. If they could sell consoles for a huge profit AND charge game developers 30% fees they would. That’s how capitalism works.

 

[ani4ani]

They don't all develop games. If you aren't affiliated with sony as a game developer, sony still takes a licensing fee cut. Apple handles advertising and distribution/hosting as well as credit card transactions. There's costs associated with that.

I agree, but in your example, Sony is swallowing all the hardware losses so that developer has something to develop for and sell for. It's not like Apple is losing $200 for every iPhone being sold, or 40% of the selling price if equivelent [the estimate that is given for how much Sony is losing on every PS5 at launch / Similar numbers for Microsoft and the XBox]. Apple has some costs, no doubt, but barely anything in relative terms. BTW - no one should be charging 30% for digital distribution fees in my opinion.

 

[archer75]

BTW - no one should be charging 30% for digital distribution fees in my opinion.

I don't disagree. But they all are. And because of that I don't believe it's fair to single out apple when they all do it. Every company has costs that can vary greatly. Would a better company not manage these costs better? Do we penalize them because they do so?