“Apple and Google have made billions of dollars by charging developers to sell their apps on the tech giant’s respective app stores,” Daniel Howley writes for Yahoo Finance. “But now some of those app developers and their parent companies are starting to push back against the so-called app-store tax, which is often up to 30% of the amount consumers pay.”
“Epic Games, developer of the overwhelmingly successful Fortnite, has cut Google’s Play Store out of the app equation entirely by having Android users download the game to their phones from its own website,” Howley writes. “More recently, Netflix began testing a way to get around paying Apple a cut of its customer subscription fees by having users sign up for the service outside of the App Store in 33 countries, not including the U.S.”
“However, these measures could backfire on app developers for one reason: Consumers are lazy,” Howley writes. “‘Whenever you add a step, conversion declines,’ explained Gene Munster of Loup Ventures, referring to a customer who’s being ‘converted’ to a regular subscriber… ‘My guess is that, they’d be giving up more than they’d be gaining, because of the increased hassle,’ Munster said. ‘Some players, like Netflix, … may be a different animal, where they are so good people are willing to say, ‘That’s fine, I’m okay with jumping over this very low hurdle,’ but most people are lazy,’ Munster explained.”
Read more in the full article here.
MacDailyNews Take: We agree with Gene.
It does cost money to run Apple’s App Store and it’s certainly the most visible, effective, and efficient means of distribution the planet has ever seen. Again, this is capitalism at work. If enough developers can avoid the App Store and make more money then Apple will have to address their App Store fees (and Google will follow, as always). If not, then the cost of deploying via the App Store is worth Apple’s asking price. — MacDailyNews, August 22, 2018
Apple and Google face growing revolt over App Store ‘tax’ – August 22, 2018
Netflix tests a bypass of Apple’s iTunes Store billing in 33 countries – August 21, 2018