Amazon to halt sales of Apple TV, Google Chromecast in bid to push Fire TV & Prime Video

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  • Reply 161 of 163
    brucemcbrucemc Posts: 1,541member
    Quote:

    Originally Posted by Sigil View Post

    Apple gets revenue from HBO, Netflix and Hulu. Amazon refuses to share evenue with Apple. Why would they remove or block services that are a source of revenue? I should of been more precise Apple is reluctant to allow competing services that refuse to share their revenue generated from their iOS presence.

    Apple only requires their "cut" when the subscriber signs up "via the app" (e.g. Apple is directly involved in the "discovery" of the service & bringing that subscriber to the provider).  Anyone can use an existing login generated by signing up through the service at their site.  That is what I did for Netflix, and so Apple doesn't get any share of that.  Also what I did for Kindle app.

     

    There is a legitimate argument to be made that Apple's standard "30%" cut on subscriptions is too high given the recurring revenue stream, vs. the cut from what are essentially one-time purchases in applications.  Hence the "rumours" (never confirmed TMK) that for Netflix and HBO, Apple has agreed to a lower value like 15%.  Why don't they do this across the board?  Perhaps because Apps of all types might move to a subscription model trying to lower the fees, but it is hard to see that it would necessarily be a negative to Apple, as subscription has to have some recurring fee.  I think it would be very beneficial to Apple's ecosystem.

  • Reply 162 of 163
    jungmarkjungmark Posts: 6,926member
    sigil wrote: »
    Apple gets revenue from HBO, Netflix and Hulu. Amazon refuses to share evenue with Apple. Why would they remove or block services that are a source of revenue? I should of been more precise Apple is reluctant to allow competing services that refuse to share their revenue generated from their iOS presence.

    Is it Apple banning third parties or third parties refusing to comply with the rules? It's the latter, of course.

    It's like saying "I want to go in the country club but they're banning me for not getting a membership".
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