'Apple V.S. the Creator Economy' by ljin18 lijin apple
Apple has always thought of itself as the kind of company that empowers creative people to do their best work.
These three principles served iOS well in the early days when the platform was nascent and needed to be hand-nurtured. But now that the iPhone is ubiquitous, the App Store has become part of the basic infrastructure of the internet. And many of its policies around in-app purchases and tightly controlled App Store curation are not well-suited—and in fact harm—the broader ecosystem.
Why? For one, in-app purchases on iPhone are slick and fast. But for another, it allows Apple to take 30% of all purchases made in-app by customers. To be clear, it is acceptable for Apple to take a cut for providing payment infrastructure. But other companies, such as Stripe, that do the same kind of processing charge closer to 3%—an entire order of magnitude lower than Apple’s cut.
Beyond the take-rate, Apple has also limited the amount that creators can charge for in-app purchases to $999.99. The role of iOS is important enough in today’s consumer tech landscape that if you can’t operate a native app, you’re severely constrained. In the US, the iPhone has been gaining market share for years and in Q4 2020 hadOnlyFans is just one example. The full economic potential of the creator economy is hindered by Apple’s gatekeeper status and its notions of morality and taste.
And it worked! Apple’s highly proactive curation has helped them establish trust among users, who presume that anything they download off of the App Store will be of a certain quality and security level. No other major platform—including the Mac—forces the same limitations on payment infrastructure that Apple does: imagine the hue and cry if Google Chrome were to only allow payments using Google Pay.
We can imagine some pretty compelling possibilities for businesses like Spotify, YouTube, Twitter, Instagram, TikTok, Snapchat, Discord, Twitch, and Substack—but that’s just the tip of the iceberg. It’s much harder to imagine what new services might emerge, or what shape the economy might evolve into in the long run.
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