Why is Apple suddenly giving up on app developers?


The one thing you can’t do in the Netflix app on an Apple device is to subscribe to Netflix. A message on the app’s home screen explains this and encourages new users to return “when you’re a member”. It’s up to them to figure out how to do that.

This confusing setup is an effort to comply with Apple’s rules that prohibit apps on its platform from directing users to shop elsewhere and avoid Apple’s 30 percent commission. But it’s likely to change soon. Apple announced on Wednesday allow some apps, like Netflix and Spotify to direct their users to payment methods outside the App Store. Request second privilege What Apple did last week makes app developers think it’s part of a deliberate campaign.

Analysts following Apple said these changes won’t significantly impact the tech giant’s $20 billion App Store business. In its place, Kellen Browning and Daisuke Wakabayashi report For The New York Times, these moves are a strategic retreat, an effort by Apple to fend off threats that would further damage its own profitability. (Apple declined to comment.)

Apple is under pressure from regulators around the world who accuse it of exerting too much control over developers selling products on the App Store. South Korean lawmakers on Tuesday an invoice has passed This will prohibit app stores from forcing developers to use only proprietary payment systems. Apple is also facing antitrust investigations. United States of America, NS European union, Britain and India. And the decision is awaited. The lawsuit filed by Epic GamesHe tried to avoid Apple’s commissions altogether.

But it’s unlikely that Apple will surrender so easily to its cash cow: game revenue. According to Epic’s lawyers, 81 percent of Apple’s App Store revenue came from games in 2016. Apple’s CEO, Tim Cook, said in the witness stand in May that “the majority” of App Store revenue still comes from gaming revenues. Wedbush Securities analyst Daniel Ives estimates that the money Apple collects from apps for consuming content (the type of app under the latest concession) is negligible.

There are more significant changes that Apple could make and that it most likely hopes to avoid. It could reduce the in-app purchase commission, allow other companies to install app stores on iOS devices, or allow customers to download apps directly from the internet. Spotify CEO Daniel Ek said on Thursday that Apple’s changes are not “a real solution.” in a tweet. “Our goal is to re-establish competition once and for all, not an arbitrary, self-serving step every time.”





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