Re:Regulators probe Apple 30% subscription plan
by SoftwareMaven on Friday February 18, 2011 @04:39PM
(#2237387)
There are places I think the 30% is completely reasonable. As another comment here mentions, trying to do $1 transactions using Paypal or a merchant account would be insane. Taking a 30% cut on applications, where they are not just processing money, but also providing distribution and other infrastructure is fine.
My complaint is taking a flat 30% of all subscriptions and digital purchases where their only value-add is as a credit card processor. As I said originally, I think Google's 10% is also steep for this same feature, but, as others pointed out, you aren't required to use theirs, so if you find a better deal, good for you. Also, Google's 10% won't cause my iPhone subscriptions to go up by 10%, but Apple's 30% may cause my Android subscriptions to go up 30%.
This is still hypothetical, and it is a hard problem to solve. On the one hand, you have Netflix that has a huge infrastructure and large supplier costs who is already set up to do very well at $15/month. On the other hand, you have Po Dunk Developer who wants to add $0.99 subscriptions to his app. 30% on the former is too much; 30% on the latter is reasonable. How do you reconcile?
Most businesses would provide a way for Netflix to enter a formal agreement that pays some amount up front, then lowers the percentage. I have to wonder if Apple will go that path (or something similar) as well. I hope so.
My complaint is taking a flat 30% of all subscriptions and digital purchases where their only value-add is as a credit card processor. As I said originally, I think Google's 10% is also steep for this same feature, but, as others pointed out, you aren't required to use theirs, so if you find a better deal, good for you. Also, Google's 10% won't cause my iPhone subscriptions to go up by 10%, but Apple's 30% may cause my Android subscriptions to go up 30%.
This is still hypothetical, and it is a hard problem to solve. On the one hand, you have Netflix that has a huge infrastructure and large supplier costs who is already set up to do very well at $15/month. On the other hand, you have Po Dunk Developer who wants to add $0.99 subscriptions to his app. 30% on the former is too much; 30% on the latter is reasonable. How do you reconcile?
Most businesses would provide a way for Netflix to enter a formal agreement that pays some amount up front, then lowers the percentage. I have to wonder if Apple will go that path (or something similar) as well. I hope so.