In a recent report by Reuters, Apple Inc. has formally announced on Wednesday that they would stop making money by taking a cut of some sales but only for the "qualifying" streaming video services on the iPhones and other devices by Apple. These "qualified" streaming services include a huge video provider, Amazon.com's Prime Video.
FILE PHOTO: An Apple company logo is seen behind tree branches outside an Apple store in Beijing, China December 14, 2018.
In order to purchase inside the App Store, Apple actually requires the use of their own Apple payment system in order for them to take a commission of about 15% all the way to 30% even before passing on the buyer to the third-party app developer.
How other streaming services avoid paying apple
There have been a few techniques used by both Netflix Inc. as well as Spotify Technology SA in order for them to avoid paying commission to Apple. These two companies ask their users to sign up with their credit cards outside of the App Store in order to avoid paying the commission.
This process leaves out those different rivals' apps serving as tricky log-in screens for existing customers. Netflix and Spotify make sure that their users pay directly to them to avoid giving money to Apple or even allowing Apple to increase their prices.
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Spotify's comments on Apple
According to Spotify, Apple's very own practices have hurt their business by intentionally making it much harder for the iPhone users to sign up for a Spotify account instead of their very own Apple Music. This has lead them to file an antitrust complaint against Apple itself some time last year in the European Union.
Spotify has also been vocal about the issue to both the United States Justice Department as well as the House Judiciary Committee which both have existing antitrust probes that are pending regarding Apple itself.
Apple has lifted the practice
Apple has just recently lifted the practices on Wednesday for a few purchases. Included in an email sent by Apple was a statement which explained their new procedures by saying, "qualifying premium video entertainment apps such as Prime Video, Altice One and Canal+, customers have the option to buy or rent movies and TV shows using the payment method tied to their existing video subscription."
Apple has also still suggested that the following services will still function better with the Apple device and apps giving examples of how the voice assistant, Siri, could be helpful for users to find shows on the third-party services.
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Apple did not explain further as to when the program was started or how video apps could work their way up and qualify for this standard or even whether Netflix and Spotify would be included in the "qualified" streaming video services list.
Apple has also launched their very own streaming television service called the Apple TV+ some time last year and although it has not make as huge headlines as Netflix or other streaming services, it is still nonetheless a competitor application.
