Apple and Google face revolt over app store charges

[Newsfeed]

Apple and Google face revolt over app store charges

A backlash against the app stores of Apple Inc. and Google is gaining steam, with a growing number of companies saying the tech giants are collecting too high a tax for connecting consumers to developers’ wares.

Netflix Inc. and video game makers Epic Games Inc. and Valve Corp. are among companies that have recently tried to usurp the app stores or complained about the cost of the tolls Apple and Google charge.

 

[system32]

For Google, you don't have to use Google Pay or Google Play Store.

You can distribute your app via Google Play store, but collect you money elsewhere.

Most developers use Google Pay because it's convenient.

For Apple, you locked in.

 

[SauRoNZA]

I think they need a scaling model of some kind.

It makes sense on little apps that are $1-2 maybe even up to $5 as they do all the infrastructure and hosting of that etc.

But when it gets to serious money apps and ongoing subscription stuff like Netflix a better model is required or a static cap of some kind.

 

[InfidelGastro]

Ah yes, these two monolithic giants that rule the entire known world and are a law unto themselves. Greed always begets greed.

 

[sajunky]

I think they need a scaling model of some kind.

It makes sense on little apps that are $1-2 maybe even up to $5 as they do all the infrastructure and hosting of that etc.

But when it gets to serious money apps and ongoing subscription stuff like Netflix a better model is required or a static cap of some kind.

^This. Convenient for small developers, but not cost effective channel for big players.

 

[kianm]

30% is high for a cut really

 

[krycor]

30% is high for a cut really

Yes and no.


For a media company like Netflix where the content is what’s on offer the platform charge makes lesser sense especially when it’s a subscription sale.

BUT

When you consider that other apps depend heavily on the iOS SDK, iOS platform & App Store(same with android).. well I hate to break it to app developers but the platform owner always wins (like the house in casino).

This kinda reminds me of enterprise software platforms wherein you can purchase extensibility packs etc but you still need to pay support & maintenance.

Well guess what, the way the App Store model works is by collecting on App Store purchases so that the platform is free to users. Last I checked the platform is maintained, supported, re-developed and if you use the sdks right your support & maintenance cost as a developer is lesser than building the same app separately let alone marketing.

 

[SauRoNZA]

30% is high for a cut really

For a subscription service with nothing but the App hosted on the store and everything else hosted directly by the Developer (Netflix), Yes it’s too high on an ongoing basis.

For a small developer who doesn’t need to host anything at all or worry about uptime and availability in every country etc it’s a small price to pay. Especially if they hit sudden success and needing to scale ducks them over.

However in this case Netflix signed up for this model so I don’t know what the problem is. As far as I know nothing forced them to use this model over their conventional model via the website and they fully volunteered for it.

I definitely think for subscription services the model needs to be different.