3 ms·

It not the starting of price of 30%, the problem is Apple will not adjust it one bit for anybody[1]. Microsoft or Sony will happily negotiate with AAA developer

It not the starting of price of 30%, the problem is Apple will not adjust it one bit for anybody[1]. Microsoft or Sony will happily negotiate with AAA developer, none of the top devs will pay close to 30%. You think Naughty Dog or Bethesda will pay 30% and also do exclusive releases etc? Sometimes MS or Sony will even pay developers to support their platform, there is always room to negotiate unlike Apple. [1] Streaming services being the exception in virtual goods, if Apple charges Hulu or Prime 30%, the studios which also license content to Apple TV will not be happy. It could get Apple TV locked out or deals will become expensive. Back catalogue is really, really valuable in Music and TV, Michael Jackson ownership of ATV is famous example of this Syndication and streaming now is where the money is Apple cannot afford to antagonize the content industry .

scarface74 6y ago
Sure. Apple negotiates with indy game developers all of the time for exclusive releases via Apple Arcade and they pay them an up front fee. Streaming services being the exception in virtual goods, if Apple charges Hulu or Prime 30%, the studios which also license content to Apple TV will not be happy. It could get Apple TV locked out or deals will become expensive. One has nothing to do with the other. The studios deal with Apple TV because Apple gives them a boatload of money to produce shows for AppleTV. The studios also license content to be sold via iTunes. This was the case before the iPhone was released. Apple doesn’t pay for syndication rights for older TV shows but for one or two exceptions. No third party is counting on syndication. Not Netflix or Apple. All of the studios are taking their ball and going home. That’s why there is such a push for original content.
- manquer 6y ago
  Apple Arcade explicitly forbids any in-purchases or ads. So not sure if we can compare a subscription service to a marketplace like App Store. In Arcade of course Apple is paying money now to get enough content on the platform to make subscribers come, same MS did with Windows phone etc. Market place always need boosting either on supply or demand side to get started, it is unlikely Apple or anyone else starting a market place will continue to pay once the market is large enough. Xbox/ PS keep paying since they know that marquee games are reason many times one the console is bought. For android and iOS market to be considered as one market there should be that level of competition at least. While streaming has reduced privacy to large extent, the streaming business model whether subscription or micro-purchases (rent/ buy or song / album etc) have been always a threat to studios. Everyone is rushing to do original content yes , Netflix, Prime and Apple are already able to produce similar quantity and quality to studio in new content or will soon enough, however streaming companies cannot compete with the back catalogue for next 20-30 years. Disney+ and is pulling out of other streaming services today. 5 years from now, Netflix may be ready to multiples than they were paying, just for non exclusive access to that back catalogue of Disney. Disney will not care whether Prime or Netflix is also showing older disney back catalogues as long they have enough people paying for disney+ , where newer and some exclusive content is available. Their ownership of Disney+ means they can always negotiate from a position of strength. Studios are distribution companies first, content producers second. If you control distribution you control the price. While the studios are taking the ball home today, I am not sure they will not be back later . I am not saying any of this why Apple is why they charge differently for streaming, just that the industry is in flux currently. P.S. Had Jobs been alive, things would have turned out differently, I think Apple would have likely acquired Disney, it is a good fit, Jobs owned substantial stake in both.
  - scarface74 6y ago
    Apple Arcade explicitly forbids any in-purchases or ads. So not sure if we can compare a subscription service to a marketplace like App Store. This is a good thing. I hope Apple Arcade completely turns people against games with in app purchases and ads. Just like Netflix has turned people against ads and encouraged people to pay for content. This may also make room for non slimy indy developers. it is unlikely Apple or anyone else starting a market place will continue to pay once the market is large enough If the market grows large enough that developers can convince people to pay for content one time and no ads or in game purchases - that sounds like a win.

scarface74 6y ago

Sure. Apple negotiates with indy game developers all of the time for exclusive releases via Apple Arcade and they pay them an up front fee. Streaming services being the exception in virtual goods, if Apple charges Hulu or Prime 30%, the studios which also license content to Apple TV will not be happy. It could get Apple TV locked out or deals will become expensive. One has nothing to do with the other. The studios deal with Apple TV because Apple gives them a boatload of money to produce shows for AppleTV. The studios also license content to be sold via iTunes. This was the case before the iPhone was released. Apple doesn’t pay for syndication rights for older TV shows but for one or two exceptions. No third party is counting on syndication. Not Netflix or Apple. All of the studios are taking their ball and going home. That’s why there is such a push for original content.

manquer 6y ago
Apple Arcade explicitly forbids any in-purchases or ads. So not sure if we can compare a subscription service to a marketplace like App Store. In Arcade of course Apple is paying money now to get enough content on the platform to make subscribers come, same MS did with Windows phone etc. Market place always need boosting either on supply or demand side to get started, it is unlikely Apple or anyone else starting a market place will continue to pay once the market is large enough. Xbox/ PS keep paying since they know that marquee games are reason many times one the console is bought. For android and iOS market to be considered as one market there should be that level of competition at least. While streaming has reduced privacy to large extent, the streaming business model whether subscription or micro-purchases (rent/ buy or song / album etc) have been always a threat to studios. Everyone is rushing to do original content yes , Netflix, Prime and Apple are already able to produce similar quantity and quality to studio in new content or will soon enough, however streaming companies cannot compete with the back catalogue for next 20-30 years. Disney+ and is pulling out of other streaming services today. 5 years from now, Netflix may be ready to multiples than they were paying, just for non exclusive access to that back catalogue of Disney. Disney will not care whether Prime or Netflix is also showing older disney back catalogues as long they have enough people paying for disney+ , where newer and some exclusive content is available. Their ownership of Disney+ means they can always negotiate from a position of strength. Studios are distribution companies first, content producers second. If you control distribution you control the price. While the studios are taking the ball home today, I am not sure they will not be back later . I am not saying any of this why Apple is why they charge differently for streaming, just that the industry is in flux currently. P.S. Had Jobs been alive, things would have turned out differently, I think Apple would have likely acquired Disney, it is a good fit, Jobs owned substantial stake in both.
- scarface74 6y ago
  Apple Arcade explicitly forbids any in-purchases or ads. So not sure if we can compare a subscription service to a marketplace like App Store. This is a good thing. I hope Apple Arcade completely turns people against games with in app purchases and ads. Just like Netflix has turned people against ads and encouraged people to pay for content. This may also make room for non slimy indy developers. it is unlikely Apple or anyone else starting a market place will continue to pay once the market is large enough If the market grows large enough that developers can convince people to pay for content one time and no ads or in game purchases - that sounds like a win.