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> I think if Apple had a flat 15% for subscriptions they’d still get a fair bit of usage, as there are big conversion advantages to using the IAP system. They m
by dwaite 6y ago
> I think if Apple had a flat 15% for subscriptions they’d still get a fair bit of usage, as there are big conversion advantages to using the IAP system. They might even get more revenue by attracting dev’s with reasonable terms, growing the amount of subscription apps using.
As a personal aside, the 15% rate is a bit odd in the App Store, as someone loses money on my subscriptions there. My personal App Store account is funded heavily by gift cards bought at 15-20% off, and I strongly suspect based on deals I've seen over the years that merchants have historically gotten a 15% cut on gift cards sold.
I also have been trying to figure out whether this has changed recently, as Apple has consolidated their "App Store" gift card with the retail "Apple Store" gift card - the same gift card can be used for movies, subscriptions, or toward new headphones. Coinciding with this, all of my channels for purchasing gift cards at discounted rates removed their card displays.
This could very well be part of a coordinated effort to reduce the average cost of IAP to be capable of offering a lower rate around in-app purchases. It could also be Apple realizing they are now giving up significant profit on people applying these gift cards toward Apple-run services, like Apple Music or Arcade.
- graeme 6y agoOh right I forgot about that. People ignore this with the 15%-30%: Apple has done a lot of work to get money into the app store ecosystem. The larger margin allowed them to spread this sort of currency. They can make a different solution, but it may not be better for the app ecosystem. Those gift cards got a lot of people into buying apps. I personally started when I got a $100 itunes gift card while buying a laptop as a student.