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It's 30%. It's only 15% after 12 months of a customer rebilling which is statistically insignificant number, and it was only done as a carefully orchestrated PR

by pentae 3y ago

It's 30%. It's only 15% after 12 months of a customer rebilling which is statistically insignificant number, and it was only done as a carefully orchestrated PR move to make people think 15% when it's really 30 - as you have demonstrated

ralfd 3y ago
Is it statistically insignificant? My guess would be that sooner or later most subscribers are long term customers.
- michaelt 3y ago
  Depends on what type of subscription business it is. I've heard meal kit companies like Hello Fresh lose 90% of their customers in less than 12 months, as the generous new customer discount vouchers tail off. (Not that meal kit companies would be paying Apple 30%)
  - beacham 3y ago
    [flagged]
    - cqqxo4zV46cp 3y ago
      [flagged]
  - dcow 3y ago
    Meal kit companies don’t pay the 30% because the payment is for a service that is delivered outside the app. Uber doesn't pay it either. It’s a stupid loophole apple built in that all but proves the 30% cut is ridiculous and would never work in the real world.
    - riversflow 3y ago
      Curious what B2C business sectors take less than a 30% cut?
    - jzl 3y ago
      Exactly. The whole argument about security and people needing a central payment system for things to be safe user friendly is patently ridiculous given that said approach is working just fine for all the “physical items” apps.
- dangus 3y ago
  It’s statistically insignificant because churn rates on subscription services are higher than you’d think. A typical customer lifetime might be somewhere between a year and two years, unless you happen to be a giant like Netflix. Let’s say you expect your customer to churn after 14 months, so that means you only enjoy 2 months of Apple’s reduced royalty rate. Your total average rate is 27%. This concept is why many sunscription services are able to offer lifetime subscriptions. They have already figured out what one customer is worth based on churn rate, so the lifetime subscription is set up to be a price that matches or exceeds that number.
- andy_ppp 3y ago
  If it wasn't significant in terms of Apple's profits why would they not just charge 15%...
- pentae 3y ago
  Average subscription length for most apps varies but the average is 3 months. Most people cancel within the first month no matter what the product is

by pentae 3y ago

ralfd 3y ago

Is it statistically insignificant? My guess would be that sooner or later most subscribers are long term customers.

michaelt 3y ago
Depends on what type of subscription business it is. I've heard meal kit companies like Hello Fresh lose 90% of their customers in less than 12 months, as the generous new customer discount vouchers tail off. (Not that meal kit companies would be paying Apple 30%)
- beacham 3y ago
  [flagged]
  - cqqxo4zV46cp 3y ago
    [flagged]
- dcow 3y ago
  Meal kit companies don’t pay the 30% because the payment is for a service that is delivered outside the app. Uber doesn't pay it either. It’s a stupid loophole apple built in that all but proves the 30% cut is ridiculous and would never work in the real world.
  - riversflow 3y ago
    Curious what B2C business sectors take less than a 30% cut?
  - jzl 3y ago
    Exactly. The whole argument about security and people needing a central payment system for things to be safe user friendly is patently ridiculous given that said approach is working just fine for all the “physical items” apps.
dangus 3y ago
It’s statistically insignificant because churn rates on subscription services are higher than you’d think. A typical customer lifetime might be somewhere between a year and two years, unless you happen to be a giant like Netflix. Let’s say you expect your customer to churn after 14 months, so that means you only enjoy 2 months of Apple’s reduced royalty rate. Your total average rate is 27%. This concept is why many sunscription services are able to offer lifetime subscriptions. They have already figured out what one customer is worth based on churn rate, so the lifetime subscription is set up to be a price that matches or exceeds that number.
andy_ppp 3y ago
If it wasn't significant in terms of Apple's profits why would they not just charge 15%...
pentae 3y ago
Average subscription length for most apps varies but the average is 3 months. Most people cancel within the first month no matter what the product is