Instagram CEO Says Facebook Will Help Users Get Around Apple's Cut of Transactions (cnbc.com) 30
An anonymous reader quotes a report from CNBC: Facebook is setting its sights on the creator economy, hoping to allow millions of people to make a living off its family of apps. But the company wants to promote offline transactions between creators and companies in order to avoid Apple's 30% cut of in-app purchases, Instagram head Adam Mosseri said Wednesday. "When there are digital transactions that happen on iOS, Apple insists that they take 30% of that. There's a very few number of exceptions. For transactions that happen in iOS, we're going to have to abide by their rules... but in general we're going to look for other ways to help creators make a living and facilitating transactions that happen in other places," Mosseri told CNBC's "Squawk Box." "So, for instance, if we could help brands and creators vet each other and find each other, they could make those transactions happen offline. For affiliate marketing, it's real goods, not digital goods. So we're going to try and lean in to the places creators can actually make a stable living," he added.
Apple generally takes a 30% rake from purchases of software or digital goods from apps distributed through the App Store. That would mean creators would eventually have to split revenue from goods sold within the app between themselves, Facebook and Apple. (Facebook hasn't said how much of a cut it will take, but did say it will be less than 30%.) In order to skirt around that, Instagram could push for creators to connect offline with brands or other people, in an effort to make money off the iOS operating system. It'll be a key issue for the company, which has spent the past several years feuding with the Apple.
Apple generally takes a 30% rake from purchases of software or digital goods from apps distributed through the App Store. That would mean creators would eventually have to split revenue from goods sold within the app between themselves, Facebook and Apple. (Facebook hasn't said how much of a cut it will take, but did say it will be less than 30%.) In order to skirt around that, Instagram could push for creators to connect offline with brands or other people, in an effort to make money off the iOS operating system. It'll be a key issue for the company, which has spent the past several years feuding with the Apple.
Easy Peasy (Score:5, Insightful)
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Choose your flavor of overlord; will it be smug or smarmy?
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As long as we can avoid CC transaction charges and fees by using cash only
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As long as we can avoid CC transaction charges and fees by using cash only
This might start off sounding OT - but read through first. It takes money to make money. Long ago, I had a part time video business. I started out on the "good deal" road. Turned out that those who demanded a great deal never actually wanted to pay anything. In the wedding trade, I got more then one offer to perform about 40 hours work in return for a meal at the reception.
At that point, I decided to try a different tack - cater to the upper end. And not only my profits soar, the customers were graciou
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Choose your flavor of overlord; will it be smug or smarmy?
I'll take smug - at least Apple doesn't sell your data to Cambridge Analytica.
Apple's AppStore is like a megamall (Score:3, Insightful)
The AppStore is like a megamall, with Apple telling potential vendors (developers wanting to sell apps):
"Hey, look at our megamall, all with beautiful floor-to-ceiling marble. It's got several levels, and thousands upon thousands of storefronts available. Foot traffic will be amazing for you. And security is great: we've got a whole 2 mall cops patrolling the entire mall.
There's no flat fee, we just ask for 30% of all your sales."
You, a fancy furniture store, think "hmm, ok, kinda pricey - I'll have to raise my prices to accommodate for that, by say 35% (for the 30% plus the extra 30% on that 30%...), but if foot traffic is good, it might be worth it"
Then you move in, but realize that amongst those "thousands upon thousands of storefronts", it's going to be hard for shoppers to find you.
"Oh, not a problem," says Apple, "We have a service where you can buy predominant space on the mall map at the entrance, so shoppers can easily find your store as they come in" (this is the AppStore ads iOS users now "enjoy"). So that's even more fees now.
But since Apple controls the megamall, it can stick cheap knock-off stores of your competing products on either side of yours, and even right across from you. So now you're competing with those cheap-ass stores, which undercut you, and since shoppers notice them first, end up taking away your customers - so much for that "predominant space" you bought at each entrances to bring in customers!
After a while, you figure: "I'm doing OK in this place, but could do so much better on my own! I can afford to get my own stand-alone store built and just move next door to the megamall, and people can find me there!"
One problem: everyone is only ever allowed to shop at the megamall, nowhere else!
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One problem: everyone is only ever allowed to shop at the megamall, nowhere else!
That's a feature, not a bug.
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If I had to pick between the two (Score:3, Insightful)
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It’s too bad, though, if those are the only two options.
I appreciate Apple’s stance on privacy (at least their stance here in the US), but it does seem like they treat their developers like dirt - likely because they know they can get away with it.
Alternatives (Score:2)
Instagram CEO Says Facebook Will Help (Score:3)
From Pirate to Prince. (Score:5, Insightful)
"...the company wants to promote offline transactions between creators and companies in order to avoid Apple's 30% cut..."
Oh, so when The Pirate Bay wants to promote "offline transactions" to avoid the MAFIAA cut they're fucking criminals, but suddenly Instagram is Robin Hood?
Don't even know what to say to that shit other than learn to compete instead of playing cutthroat games. Insta-grift, I promise you won't like it when the knife is at your throat next time.
"Apple will love to play this game. Trust us." - Samsung
Ummm... No... (Score:3)
I trust Apple infinitely more than I trust Facebook. *cough*CambridgeAnalytica*cough*
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Facebook has a low opinion of their audience (Score:2)
Which maffia to pay your money to? (Score:2)
It's choosing between 2 evils.
We need a third evil to choose from.
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It's choosing between 2 evils. We need a third evil to choose from.
#1. Apple, #2. Facebook, #3 would then be Google. Interesting that Microsoft has slipped below #3. on the most Eeeeevil list.
Remove your app to not pay 30% (Score:1)
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I don't know where all these app developers get the idea that they'll no longer starve when they stop paying the apple tax or sell their crap on 3rd party stores. Outside a few big studios you're more likely going to hurt your own sales in the long run.
Then again I feel most apps aren't worth paying for, and it seems outside of games most of the public feels the same way.
So facebook is going to: (Score:2)
Essentially a digital etsy, with all the safety features of craigslist? Thanks but no thanks, I'd rather stick to craigslist..fewer wackos on there than facebook these days.