Recently, louder and louder talks are made about the fees charged by Apple and Google, which are collected from every transaction made through their app stores. The situation is so severe that Netflix is considering the option to opt out of the subscription option via an App Store account. If this happens, Apple may lose as much as 16 billion dollars.
Users of mobile devices have already become accustomed to the fact that subscriptions to favourite services can pay via a payment system integrated with the app store (i.e. App Store or Google Play). However, the convenience of users is somewhat cumbersome for the owners of individual sites who have to pay Apple and Google up to 30% commission on each transaction carried out in this way. Some have already given up this type of payment. Spotify for some time allows you to pay the subscription only with the help of your system, which is configured from the level of the website. Epic Games, on the other hand, resigned from placing Fortnite in the Play store. Now Netflix joins the group of “rebels”, which in 33 countries began to test a new form of payment.
Netflix’s rebellion can cost Apple up to $16 billion
This information comes from Macquarie Research, which has analysed the impact of Netflix’s decision on Apple’s revenue from the App Store. How was the loss of 16 billion dollars calculated? Current Apple revenue trends generated by the App Store show that in 2020 they can reach $20 billion in 2020. If Apple decides to reduce the commission from 30% to 15%, this income will fall to 11.2 billion. If the commission was reduced to 5%, the revenue would drop to 3.7 billion dollars. Will this happen?
It is currently difficult to predict the decisions to be taken by Apple and Google to maintain revenue from their stores. It all depends on whether other developers will follow the steps of Epic Games and Netflix. If more companies opt out of the payments offered by app stores, then perhaps Google and Apple will decide to lower the commission charged.