Apple adds ZERO value via the app store, both for devs and for the consumers.
Let's not forget that, at least in theory, Apple curates the App Store. Neither Chrome nor AT&T does that in any substantial way.
Furthermore, Apple's business model is different from Google/Android's. Android can be a loss-leader as long as it draws users to revenue-generating Google services. Last I checked, iOS was one of Apple's primary sources of revenue. In principle (if not practice) Apple's model is based on offering a privacy and security-centric platform. For the privilege of accessing it, you pay developer subscription fees and give Apple a cut of the money you make through your app.
I think it's totally valid to argue what Apple offers is not worth the 15-30% cut. Either way, though, Apple is adding more than zero value.
In the context of Netflix, I'm not sure that they're actually getting any value from any of those things from Apple, since they already have well-established pretty much everything in that area.
I mean, sure, maybe someone had never heard of Netflix until they saw it in the app store, but I'm going to guess that number of people is well below even a blip in Netflix's revenue (especially given the universal 30% cut). Likewise, Netflix is pumping more bits around the internet than most other companies; distributing apps is only a benefit for them because they literally don't have an alternative option for iOS.
For other, smaller companies, I would agree that it is non-zero, and I would also argue that 30% is way too much.
Even initial iterations of the iPhone limited video streaming to WiFi only. Apple blazed the trail enabling millions (billions?) of hours of Netflix viewing. Apple devices are a primary use case motivating my initial Netflix subscription for kids to watch in the car on the iPad.
Further, Apple iOS provides the SDK and APIs to enable Netflix to develop their app in the first place, securely stream their content, etc.
The App Store is the only mechanism that Apple uses to charge companies for exploiting the power of these devices for their own benefit.
It’s a lot more than just the seamless experience of installing and running the app. It’s the whole stack that forms a cornerstone of how Netflix customers experience the Netflix product.
When was the last time I consumed my Netflix on something that wasn't an Apple device?? I can’t even remember!
It adds payment/fraud/refund etc only because providing that is cheaper than making sure developers pay their share after the fact. Benefits of a monopoly! Just think for one brief second how better the eco system would be by now if apple wasn't killing it via a monopoly. You are pretty much praising the mob that sells you protection because they gave you a point of sale that already subtracts their share.
That monopoly is so profitable that even TV manufacturers, kids toy manufacturers, etc now have a lock-in app store! Did you ever saw the marketing material for smart TVs development? I recommend you look it up. Their only 'feature' is 'captive users'.
Also, on your other over-simplified example, online gaming stores didn't solve any problem for the old consumers. Most of them still buy games despite the online systems like steam, while crying about lack of physical copies. What it did was unlock a huge market of non-gamers that didn't bothered to buy before.
Not 100% reliable, but they do effectively curate.
HBO made at least.7x$40 from me.
Granted, Netflix has always made it as easy to cancel as it is to sign up, so I don’t have an issue subscribing through them (and, in fact, I did).
If I thought I’d have to deal with HBO (now owned by AT&T), I’d definitely think twice before subscribing through them. I don’t know what their normal cancellation policy is, but I generally refuse to deal with service providers that force me to call a support line, wait on hold, and then deal with some customer retention rep.
Apart from Netflix, the only app where I’ll bypass Apple for purchases is Prime Video, and I’m put off enough by the process that I’ll only buy content through them that I can’t buy from iTunes.
I agree they add very minimal value for recurring subscriptions, and their fee should be dialled back to be inline with what card processors charge (because they're essentially offering payment processing and not much else).
I never give CC info if I can help it. Once you give out your CC info, you have to be eternally vigilant because they can charge you on their terms. And to cancel, you have to hop through whichever hoops the company demands of you, like requiring a phone call.
For example, I would never have taken up Youtube's 3-months-for-$1 trail last week if I had to insert my CC info. I was only open to the idea because it went through Apple's payment system and it's easy to see that I'll be billed in March if I don't trivially cancel the subscription from the iPhone interface.
Since the app store billing system is the reason I coughed up the money to Youtube, it certainly makes sense for Apple to get some of that money. And I could make a case that they deserve a cut for the entire lifetime of my subscription.
To me that's an equivalent service on the payment processing side
If you think your random app company is getting permission to do recurring billing, think again!
As a consumer, so can go into my App Store account and instantly cancel any subscription. Try that with Angie’s List or any of the numerous newspapers (including The NY Times,) those places make you call in to cancel and it can be a big pain. Apple also ensures I don’t have to give my personal information to various companies, not to mention credit card information. When was the last time Apple’s credit card data has been breached? Compare that to many other companies. If Apple didn’t offer the subscription to various things, I’d be far less likely to subscribe. So at least in my anecdotal case, appStoreValue > 0.
As a customer, I don't want to punch my CC info into every website. Netflix can get away with it because they're a ubiquitous household staple.
But for almost every other service, being able to manage recurring payments from the app store interface is a big deal to me. Recurring charges are a nightmare otherwise. Being able to integrate with the app store is why I was willing to subscribe to most other apps at all.