[rycfan]

Why would they charge the equivalent of transaction fees when they (Apple) pays those fees? How would they make any money if they only charged transaction fees?

I've run the numbers on products like this before. In order to absorb transaction fees, build your own product, and support it, fees need to be in the 10-15% range.

Also, note that almost no companies charge less if you pay out of app -- the company just keeps more for themselves.

[denzil_correa]

> I've run the numbers on products like this before. In order to absorb transaction fees, build your own product, and support it, fees need to be in the 10-15% range.

Apple does charge 10-15% for Spotify like apps viz. apps that sell subscriptions for more than 1 year.

https://developer.apple.com/app-store/subscriptions/whats-ne...

   After a subscriber accumulates one year of paid service,    
   your revenue increases to 85% of the subscription price, 
   minus applicable taxes. All current subscriptions are 
   eligible.

[mcphage]

That's a brand new rule, just going into effect.

[denzil_correa]

So is Spotify's letter.