Apple to Halve App Store Fees for Subscription Video Apps

[Wakey87433]

Take that, "Apple is greedy" people!

Problem is it's still greedy for what is a transaction fee. The standard for transaction fees is generally between 3% and 4.5% and some of the big services will even get fees lower than that. So even 15% is too high, the ease of using inapp has some value which would no doubt see firms being willing to pay a little more than they normally would but not in excess of 3 times as much over the worst value payment gateway (PayPal).

So it's still going to massively squeeze digital services revenue streams on subscription services and it doesn't seem this reduction covers other payments either meaning the likes of Amazon and VUDU can't add purchase/rental services and even if it was applied it would still be half of the service cut of the revenue going into Apples pockets. Not being able to sell digital items is hardly appealing for these services on things like the AppleTV. And I know making it viable would compete with iTunes but I can't help but think that the only people buying content from iTunes are already fully in the Apple eco system, anyone else is surely picking the services that should on the most of their devices which largely won't be Apple OR they just dont buy any at all because it's easier to get a pirate copy that works on any device rather than having to buy multiple copies. Even if they don't come from iTunes and increase in sales would increase apples revenue which is good for Apple, good for the service and good for us as we can buy it once on our preferred store and use it on all devices

And before someone says 'the higher fee is for App Store promotion' then no its not. If I produce two identical apps and submit them under different dev accounts and app names but one has inapp and one doesn't then the one without gets the same promotion the inapp payments one gets. All that's covered by the yearly developer fee.
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No it wasn't. Apple is able to bring an app from you to their 1 billion users, using their infrastructure. Taking 30% of the revenue of that is standard.

They do that for apps that they don't get 30% of the revenue from though.

And just because other people take 30% so it's become standard doesn't make it right or fair. They are making what is already a market with low profit margins for the retailers/service even tougher and we as consumers are the ones who lose out because of that

 

[turbineseaplane]

Please everyone forward this article to Jeff Bezos

You don't really think Jeff Bezos needs forum dwellers emailing him information like this do you?

 

[HiRez]

I'm thinking Amazon will still prefer to wait for 0%, but hopefully this will be enough to get it done.

 

[Defthand]

Frankly, Apple is more dependent on the content providers than the providers are of Apple—if Apple wants to succeed in the streaming video arena. Netflix is way more popular than iTunes and is available on numerous capable devices. Since Apple doesn't actually stream the content, it doesn't deserve even 15% for simply collecting payment.

 

[Wakey87433]

I'm thinking Amazon will still prefer to wait for 0%, but hopefully this will be enough to get it done.

I suspect they would be happy to pay as long as the figure was in the rough ball park of their transaction fees. Although I also suspect they would want it dropped across the board (as would the likes of VUDU) so they could sell and rent titles also rather than just sell prime subscriptions
[doublepost=1479352128][/doublepost]

Apples "hefty" cut. Pretty sure we have gone over this a billion times but the rates apple charges are very competitive. But this problem has always been odd to me since you can just register through the internet and Apple gets nothing. It works really smooth.

It's fine on say a phone or tablet where the person has an easy to use browser at a click which is why you see Services on iOS but not on tvOS which lacks a browser

 

[julesme]

Apple has missed so many opportunities to dominate streaming video over the last 5 years. It's frankly pathetic. I suppose this change makes things a bit better for them vis a vis the content providers, but Apple really needs to start competing more aggressively. They need to offer a monthly streaming TV subscription (whether low-cost like Netflix or more expensive, traditional cable package like Sling or Sony Vue), they need to invest in exclusive original TV content, they need to add Amazon's Prime Video app to Apple TV, they need to add 4K capability, they need to lower the price on their streaming box, etc...the "to do" list is almost endless.

Come on Apple, get with the program man!

 

[NexusUser]

I wonder if Roku charges 15-30% of each subscription to Netflix created through it... My guess is no. I doubt Amazon will come to Apple TV until Apple stops taking a cut of the subscription and maybe not until Apple pays them to join the ecosystem. And why should they bother when every smart TV and game console already has the service and they want to sell more Fire sticks anyway.

 

[jeff051177]

About time..... this was (is?) and anti-competition lawsuit waiting to happen. I get it that anti-competative behavior is viewed as "good business sense" by the public in the US, but as consumers, stifling competition is against our interests.

No it wasn't. Apple is able to bring an app from you to their 1 billion users, using their infrastructure. Taking 30% of the revenue of that is standard.

Hmmmm - thank you for proving my point. Apple forcing 3rd party content providers to charge customers 30% more than Apple do on their platform is virtually the definition of anti-competitive behavior.

 

[macduke]

…and will soon extend the 15 percent rate to all subscription video services that are integrated with the company's upcoming TV app.

That's the key. I wondered how Apple will get everyone on board with their TV app integration. The answer is money.

 

[Tech198]

You go Apple.. !!

I guess if users are getting Netflix and Hulu app, then halved or not, the only place IS the app store...

This 15 percent pricing would only be good to those developers that choose to have it elsewhere (like on their own website).


If Apple does anything to compete with the market its always going to be "anti-competitive", so u may as well just accept it now.

 

[devinthomas]

Amazon can only help itself here, I don't understand the hold up

 

[liberte1776]

The big things Apple TV needs are Amazon Video, Comcast Xfinity TV, ATSC 3.0, 2160P, H.265, HDMI 2.0b, HDR: Dolby Vision/HDR10.

Would like to see FOX Business too.

 

[Ries]

No it wasn't. Apple is able to bring an app from you to their 1 billion users, using their infrastructure. Taking 30% of the revenue of that is standard.

Imagine AT&T taking 30% on top of that for using thier infrastructure and the guy owning the cell tower want 30% too, then you'll see how redicilous that is. I can only get my apps through Apple on a device I paid for... If apple want a cut, give me the phone for free, until that happens, I paid for that infrastructure .

 

[Otaviano]

Apple has missed so many opportunities to dominate streaming video over the last 5 years. It's frankly pathetic. I suppose this change makes things a bit better for them vis a vis the content providers, but Apple really needs to start competing more aggressively. They need to offer a monthly streaming TV subscription (whether low-cost like Netflix or more expensive, traditional cable package like Sling or Sony Vue), they need to invest in exclusive original TV content, they need to add Amazon's Prime Video app to Apple TV, they need to add 4K capability, they need to lower the price on their streaming box, etc...the "to do" list is almost endless.

Come on Apple, get with the program man!

Apple is already spread incredibly thin. The last thing they need to do is make original content and a Netflix competitor.

They need to make sure everyone is on the Apple TV and participating in the Apple TV app. Make it open to major players like Netflix, HBO, or even upstarts who might want to move past putting their content on YouTube.

Make it the best there is and update both the software and hardware regularly.

 

[itsmilo]

Amazon can only help itself here, I don't understand the hold up

They want to sell their own devices thats why they stopped selling other streaming devices on amazon i assume. It certainly worked on me. I bought their Fire TV Stick to get Prime Instant Video and now its pretty much all i use since it also got Plex and is way cheaper than a new Apple TV 4. Also amazon DOES support Netflix content on their main screen

 

[dilbert99]

Take that, "Apple is greedy" people!

/s

Apple was dragged kicking and screaming. Sad fact is Apple is greedy.
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Apple is already spread incredibly thin. The last thing they need to do is make original content and a Netflix competitor.

They need to make sure everyone is on the Apple TV and participating in the Apple TV app. Make it open to major players like Netflix, HBO, or even upstarts who might want to move past putting their content on YouTube.

Make it the best there is and update both the software and hardware regularly.

I'm beginning to see why no one company should dominate several areas of the market, being spread too thin they are neglecting computer side of the business.

If Apple made a car, instead of the usual cycle of a few years refresh and a few years to replacement, you'd be waiting forever for a new car.

 

[Bacillus]

Apple was dragged kicking and screaming. Sad fact is Apple is greedy.
[doublepost=1479374089][/doublepost]
I'm beginning to see why no one company should dominate several areas of the market, being spread too thin they are neglecting computer side of the business.
If Apple made a car, instead of the usual cycle of a few years refresh and a few years to replacement, you'd be waiting forever for a new car.

Agree.
Apple basically missed the boat when the iTV project (= Steve's all-in-one TV UI) vaporised.
With AppleTV, they offer just another add-on box, working well with iOS devices, but with mediocre content provision. As a content farm they wanted to copy the iTunes Music Store concept and basically failed (with Eddy Cue "conquering" Hollywood - if he wasn't greedy, he wanted too much and got nothing, and now we find him scratching and scrotching with celebs and other escape's from reality)
This price-cut seems to fit that picture (= another "Dongle Acceptance Strategy")

 

[emulator]

I wonder if Amazon will announce something tomorrow to sync up with the premiere of the Grand Tour on Friday?

Only $79 prime.

 

[0098386]

Seems quite silly for them to take a cut of a subscription fee considering no video data is held on Apples servers. But then again Apple would see no money apart from the annual $99 developer fee from these companies. Could Apple contribute like hosting caches for these large files to increase download speed for the customer? That'd be a nice way to earn 15%.

 

[xmlninja]

They planned this already when they launched the 4th gen apple tv. this is their way to slowly taking control of content providers.

 

[samcraig]

Cynical me - Were any lawsuits about to emerge that Apple wanted to thwart

 

[ike1707]

Apple still charge the same price for a mac pro technology which is over 3 years old(ivy bridge ep came out sep 2013)

Someone didn't notice the sarcasm

 

[dilbert99]

Seems quite silly for them to take a cut of a subscription fee considering no video data is held on Apples servers. But then again Apple would see no money apart from the annual $99 developer fee from these companies. Could Apple contribute like hosting caches for these large files to increase download speed for the customer? That'd be a nice way to earn 15%.

I can see it from both sides. On one hand it looks like they are taking a big cut for nothing which they probably are taking too much for what they give. On the other hand they allow developers to reach a bigger market than they normally would.
I guess the problem is that people like spotify and netflix already have a big market position and Apple don't really enhance that.

 

[Sakurambo-kun]

Your move, Amazon. Your move.

Also, DirecTV Now is coming any day. Coincidence?

Why should Amazon pay Apple anything?

Amazon stream all their own video from their own servers. They handle all the licensing deals and content creation. All Apple do is host Amazon's app on the app store, which can't cost very much.

If I was Bezos I'd tell Apple to take a long walk off a short pier. Clearly other platform holders, such as Sony and Microsoft are easier (and cheaper) to work with. Apple behave in a needlessly arrogant and stubborn way.

 

[hackenbacker]

Take that, "Apple is greedy" people!

/s

Well, it has taken them long enough, and it should extend to ALL subscription services - music, newspapers, etc. - not just video.