Table of Contents
Due to being quarantined at home, we all are relying on the internet more than ever. Keeping the situation in mind, almost all the tech service providers started rolling out new offers to attract users. Since we all have been copped up indoors due to the COVID-19 pandemic, a lot of people are making quite an impressive profit out of it.
Similarly, many distributors & service providers have geared up to entertain users & simultaneously earn profit by announcing new offers. Free subscription, new offers, exclusive updates, and additional customization tools are few of the tips & tricks to get attention from users.
But what happens when many app developers or distributors aren’t able to earn expected profit due to platform tax. We all know that many developers come up with great ideas & advertise their apps on different platforms such as the App Store & Google Play Store. But, in order to keep their application on those platforms, developers have to pay some form of fee described as “Tax” for using the platform. Resulting in, their expected profit gets cut by a quite high margin & they end up making less profit.
Also Read: Can Chloroquine Actually Cure The COVID-19?
Apple Waived Off 30% Subscription Fee
It’s quite good news for the developers & distributors who plan to advertise the apps on different app stores. Because out of nowhere, Apple have decided to waive off the most criticized 30% subscription on few selected video apps.
Apple in an email statement, “Apple has an established program for premium subscription video entertainment providers to offer a variety of customer benefits. Customers have the option to buy or rent movies and TV shows using the payment method tied to their existing video subscription.”
Other benefits of relaxing the video subscription margin include “integration with the Apple TV app, AirPlay 2 support, tvOS apps, universal search, Siri support and, where applicable, single or zero sign-on.”
The margin of 30/70 let the parties (developers & platform owners) share the revenue that has also been considered as a bad business practice (specifically for a mobile industry). Because, the platform owner share is as large as 30%, the developers get lesser & lesser profit out of it.
Amazon Inc. has already started getting benefits out of it from the moment the announcement happened on Wednesday. Amazon has started selling & renting movies on Amazon Prime Service (Apple Devices) without paying a single penny to Apple Inc.
What Does It Mean For Viewers?
Apart from switching to a different payment system feature, there isn’t any major change for the viewers in this program. The program will let viewers make the payment through the in-app payment system, instead of Apple’s in-app purchase system.
Users can just use the existing video subscriptions payment methods to make the subscription amount.
Normally, any apps or service that has the in-app purchase feature has to go through the Apple in-app payment method. However, now the Apple devices (iPhone, iPad, or iTV) will be using a particular app’s payment method for in-app purchases.
Please know this program has been rolled out & is applicable on a few selected video service providers, not for every app on the App Store. Additionally, the relaxing subscription fee program will only be helping those who have their own payment method system apart from Apple’s.
The Durability of Relaxing Subscription Fee Program
The way Apple announced this benefit out of the blue it might take it back as well. There is no official announcement or hint as when the company is going to deactivate the program. Maybe, this is a temporary & short-time period scheme till the world is fighting over COVID-19 pandemic.
So, developers & distributors pull up your socks & grab the offer while you can to make the most out of it.