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One App to rule them all, One App to find them,
One App to bring them all, and in the darkness bind them,
In the Land of Apple where the Shadows lie.

- Paraphrased excerpt from the "Ring-verse", J.R.R. Tolkien.
If you take ten apps and combine them to make a "super-app", the result will be eleven apps.
 
I'm increasingly grateful that my parents imposed a limit of one magazine subscription per year to spend our lawnmowing/snowshoveling money on, as kids. There were several useful lessons in that, which I didn't fully appreciate at the time, but do now more and more as an adult.

Netflix is the one subscription service I spend $ on. It used to be Dropbox. If Netflix doesn't figure out how to put a decent Sci-Fi adventure series out in the next couple years, I think it will be a season pass to the ballet, or local theatre company. The quantity is lower, but the quality of a live stage performance positively spanks digital media in every way. You should see the resolution of the graphics in a stage production. It's so clear it's like actually being there.
Not to mention the thrills from being part of a real crowd. You could actually meet similar minded people and have good conversations before and afterwards. Heck, you might even meet your a future friend or a partner for life even. Also, you can express your appreciation to the performers, and they actually can see their crowd while performing. The latter makes for a more genuine similarity to the real definition of a performer. Damn these digitalised enhancements...
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When I subscribed to HBO Now, I just went straight to their website. Same price, and the content provider is getting all the revenue instead of peeling off a sizable percentage for Apple to just have for no reason. I do the same with any Mac app that is also available off the App Store.
In the end it’s the same momey for you.
It’s like buying your milk in the supermarket or getting it at the farm. It’s just a mindset, but none of both is better or worse, such is business.
 
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Can someone explain why Apple deserves 30% or 15% of a monthly fee I pay to Netflix or Hulu? Apple doesn’t host the content or do any marketing on behalf of these companies. And if they could offer their own payment system in-app they would.

Mostly convience and getting people to sign up.

The marketing is built-in, Apple puts up banners and stuff, they want to get you to sign up. I think we’d be shocked at how many people actually sign up for HBO because they happen to have an Apple TV, so they get a cut.

Don’t you think streaming services or Comcast don’t gets a cut of what people pay for HBO each month? What about Google Play apps? Or add services like HBO to your amazon account?

If you just go to HBO GO site you can pay for it and Apple doesn’t get a cut.


If the argument is without Apple’s platform these companies/services wouldn’t exist then why isn’t Apple taking a cut of every Uber or Lyft ride?

I believe the only take a cut on digital goods.

If you buy a physical book from Amazon app, Apple does not get a cut.
You buy a digital Kindle book from inside the Kindle app Apple gets a cut.

Developers do not have to develop apps for the Apple ecosystem, they made a choice and they’ve clearly decided it’s worth a service charge to sell more products.

Some stores/developers do not feel that way, VUDU app lets you see everything you purchased but you can’t do purchases or rentals through the app. You need to go over the website to do that.
 
Unlike cable TV, you're stuck with 500 channels with only 20 channels or less you actually watch and then get charged an arm and a liver, now that will bankrupt us all. Cable TV's monopoly for years is dying and they can't do anything about it. I'd be interested in what they have planned to bolster my watching experience.

I pay for high speed internet. my bundled phone is essentially free (cost more to dump it), and the cable "subscription" is still cheaper than the current a' la carte offerings (even for the few channels I'm interested in watching).

I seriously doubt Apple will get entertainment companies to the table with same pricing model as music.

I'll bet they concentrate on aggregating and serving up content (which can be driven back to iTunes or individual subscription / not taxing you on your individual subscriptions. It would be great to see deep integration (with reviews/rotten tomatoes / learning from my preferences) across all the applications on Apple TV. I'd also like to see different user profiles.

They've got to beat google and amazon at something!
 
Thing is those 20 channels a la carte will probably cost the same as the 500 channel subscription

Yep, It won't be but a few more years till a bundled cable subscription will be significantly cheaper than paying for just internet and streaming services.
 
I knew this was coming. Apple News already does this. I’m just waiting for their own streaming TV package.

This.

Why is it taking so long for apple to put out their own streaming TV live content. They had a lot of pushback back in the day but every other company is doing it already so what's the big deal. What's taking so long.
 
This.

Why is it taking so long for apple to put out their own streaming TV live content. They had a lot of pushback back in the day but every other company is doing it already so what's the big deal. What's taking so long.
Perhaps it simply is a business that is too saturated to try and really revolutionise... The leap towards making good own content is motivated by the search for total rights on content as opposed to distribution fees for external content.
If you are not niched like those streaming companies are, the drive to make quality material in order to gain a proper revenue is perhaps too low to really produce content that is standing out?
 
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Can someone explain why Apple deserves 30% or 15% of a monthly fee I pay to Netflix or Hulu? Apple doesn’t host the content or do any marketing on behalf of these companies. And if they could offer their own payment system in-app they would. If the argument is without Apple’s platform these companies/services wouldn’t exist then why isn’t Apple taking a cut of every Uber or Lyft ride?

Why isn't Apple taking a cut from every Uber or Lyft? The way Apple do it, is if what you paid if offered by any real world product or services, i.e You buy a physical product or food / drinks from Amazon a, they don't change a commissions. Anything that is Digital, and In -App Purchase, like Netflix, ( Digital Video ) and Spotify ( Digital Audio ), or in Game items, they charge a commission.

And if you ask why the deserve it? Well most landlord provide little to no additional services and yet they charge something call rent. Because that is the location where people gather, and you can charge more if more people are there. Similar to iOS. You either have access to this group of user or you simply leave them. Because no one is willing to switch over to Android or other system just because there is no Netflix or Spotify.
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It's 15%.

In order for a service to get content to end users, let's say HBO, they go through a partner, let's say Comcast, who would take a cut. In return, Comcast had to:
  • Create a system that HBO could hook into, and then support HBO
  • Act as an affiliate or referral agency to have Comcast customers become HBO customers
  • Engineer, manufacture, and provide ongoing support for the cable box device that delivers the video
  • Provide end user customer service and support
  • Provide financial services: collecting money from customers, dealing with fraud and abuse, distributing payments to HBO, and paying the credit card service fee which is about 1.5% to 3%
People keep complaining and listing all of the things that Apple doesn't do. What Apple doesn't do is irrelevant. What Apple does is very relevant, and Apple does most of the things for HBO that Comcast did.

I have no idea what a fair cut is, but 15% doesn't seem outrageous to me. Also, Apple would need 1.5% to 3% just to break even on the credit card service fee, so take that out of Apple's cut.

In fact, if HBO's app simply collects payment outside of the Apple ecosystem, like HBO does right now, then Apple gets nothing at all. So Apple is currently providing all of those services listed above, for free. Only if HBO charges through the Apple ecosystem does Apple get 15% that cut.

It's a bit weird to me that people think this setup is outrageous or unfair. I assume they just haven't really though it through. Can you imagine Comcast letting HBO onto their system for free? It's absurd.

P.S. 15% is the same as the Google Play Store charges for app subscriptions, but everybody seems to question Apple alone. I get that we are on an Apple blog in an article about Apple devices, so that's okay here in this context. But I see it in the general blogosphere too, which seems unfair and biased against Apple.

5 Likes for this post. And the first sentence is already incorrect.

It is 30% for 1st year, and 15% thereafter. And Start with 30% again if they left and rejoin.

You made it as if there is huge amount of supporting into HBO, and engineering around it. That is like saying your Subscription to Apps is part of what paid the iMac or iPhone development. Because it simply isn't.

It is simply rent seeking. And simply because they can. Now whether you think 30% or 15% is outrageous is debatable.
 
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Hey, you didn't ask me! I happen to like ATV.
It’s not the ATV I have a problem with, it’s the TV app itself! Apple should take it iut in the back and shoot it, and build a better version of Google’s YouTube TV w/ a True a-la-carte menu of channels. Then they’ll have a compelling product.
 
It seems like everybody want you to "subscribe" to their stuff, nowadays. Subscribe to TV, movies, music, recipes, cooking ingredients, food, blogs, books, audiobooks, delivery services, software, etc., etc. Subscription services will bankrupt us all.

That post just cost you 34c in tax - Macrumors taxes you 1c per word. Buy a subscription though - You get the first 100 words free and after that, it's just .5c per word. All for a sweet 49.99 monthly fee - (HD words are 59.99 per month)
 
To be fair, if not for Apple providing the ecosystem Hulu wouldn’t have a huge money-spending audience to sell to.
If Apple adds extra on top of normal subscription pricing I won’t subscribe through the app then, cheaper to go directly through the companies website or their own apps
 
Can someone explain why Apple deserves 30% or 15% of a monthly fee I pay to Netflix or Hulu? Apple doesn’t host the content or do any marketing on behalf of these companies. And if they could offer their own payment system in-app they would. If the argument is without Apple’s platform these companies/services wouldn’t exist then why isn’t Apple taking a cut of every Uber or Lyft ride?

This is all wild guessing at what will be charged and for what service, but to answer your question about why Apple or Amazon, Google, etc., "deserve" to be paid for selling content, subscriptions, etc., it is how reselling works in the world and has always been so. You may think those businesses are run at low cost, but it cost Apple, Amazon, Ebay, etc., tens of billions of dollars to build those businesses, and ongoing many billions of dollars to be capable to have a market for people to sell to, to dealing with billing, etc., and most of all to acquire and keep the hundreds of millions of customers. When I sell something on Amazon, they get, on average a 15% referral fee, plus a minimum per item fee in most cases. Why do they "deserve" that when I am doing all of the work, including storing and shipping my product??? LOL Millions of people worldwide wouldn't even have a business if those companies didn't build and maintain those markets for us.
 
To be fair, if not for Apple providing the ecosystem Hulu wouldn’t have a huge money-spending audience to sell to.

What are you talking about? Hulu runs on nearly every device just like Netflix. Apple, as usual, has minimal market share.

I will NEVER buy anything "through Apple" again, because:
  • I want the relationship with the service provider, not Apple, and
  • I don't want to get locked into Apple like with iTunes. I've got movies I bought that are now a waste because I moved away from Apple TV. If I had bought them on Amazon, I could use them on any device.
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This is all wild guessing at what will be charged and for what service, but to answer your question about why Apple or Amazon, Google, etc., "deserve" to be paid for selling content, subscriptions, etc., it is how reselling works in the world and has always been so. You may think those businesses are run at low cost, but it cost Apple, Amazon, Ebay, etc., tens of billions of dollars to build those businesses, and ongoing many billions of dollars to be capable to have a market for people to sell to, to dealing with billing, etc., and most of all to acquire and keep the hundreds of millions of customers. When I sell something on Amazon, they get, on average a 15% referral fee, plus a minimum per item fee in most cases. Why do they "deserve" that when I am doing all of the work, including storing and shipping my product??? LOL Millions of people worldwide wouldn't even have a business if those companies didn't build and maintain those markets for us.

Your example isn't relevant to this. All of these providers already have the infrastructure, brand recognition, apps, etc.. You as a seller on Amazon have none of that. Literally Apple is providing convenience it buying because someone is too lazy to take 60 seconds and go to a browser window to make the purchase.
 
So much about revolutionizing tv industry. Didn't Tim Cook say "if we're really honest, it's stuck back in seventies"?
 
That post just cost you 34c in tax - Macrumors taxes you 1c per word. Buy a subscription though - You get the first 100 words free and after that, it's just .5c per word. All for a sweet 49.99 monthly fee - (HD words are 59.99 per month)
Ohh - HD words, where do I sign up?
 
5 Likes for this post. And the first sentence is already incorrect.

Thanks for the correction, I've updated my post. The article I read said Google and Apple both charged 15%, without the additional details that you provided to me.
 
What are you talking about? Hulu runs on nearly every device just like Netflix. Apple, as usual, has minimal market share.

And most of hulu's revenues come from subscriptions which are used on iOS devices, not on all these other devices. Hulu needs apple as much or more than apple needs hulu.

That's what I'm talking about.
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If Apple adds extra on top of normal subscription pricing I won’t subscribe through the app then, cheaper to go directly through the companies website or their own apps

That's up to the companies.
 
Uh... OK... I live in Canada and I've been paying for Netflix through my iTunes account since I signed up for it via Apple TV.

Pretty good for me as I refuse to get a credit card
 
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In the end it’s the same momey for you.
It’s like buying your milk in the supermarket or getting it at the farm. It’s just a mindset, but none of both is better or worse, such is business.

Yeah. It's not "just a mindset" if you back it up by giving more of your money directly to the people who actually make the thing you're buying.
 
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