What We've Learned: Everyone is tired of the app store policies - The UpStream

What We've Learned: Everyone is tired of the app store policies

posted Friday Dec 28, 2018 by Scott Ertz

One of the biggest surprise trends of 2018 has been the disillusion with the normal process for distribution. The leader of the revolution has certainly been Epic Games. Between circumventing Google Play for Fortnite on Android and launching a new PC game store, they have been the ones carrying the flag against high commissions and "business as usual" in the industry. Epic has not been the only one fighting against the norm, however. Discord also created their own store, yet another way for developers to distribute their games and for gamers to discover great new content.

But standard distribution is not the only problem facing developers. One of the biggest financial hits to any subscription service is the cut that platform providers charge for those recurring payments. The biggest problem has always been Apple, which requires that in-app purchases be made available through the App Store. This requirement is because Apple takes 30 percent of the charge. That means that a service offering the ability to subscribe to their service through their app must either charge more for the service or potentially lose money on every subscriber.

Netflix has been on the leading front of this particular battle. As the company produces more and more original content, they need every penny that they can get. Since announcing their plans, they have tried to keep their prices steady, but with a 30 percent loss on every Apple-based subscription, that gets really tough.

Earlier this year, there was a rumor that they would turn off the ability to subscribe through an Apple device, requiring new users to go to the website to sign up instead. This week, the rumors were proven true, with Netflix officially killing the ability to sign up for service through their iPhone app. This change could significantly change the bottom line for Netflix, meaning that they can continue to enhance their slate of original content for the foreseeable future.


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