APP STORE OPTIMIZATION BLOG

Netflix, Fortnite Developers Look to Circumvent 30% App Store "Tax"

Posted on August 24th, 2018

When you pay for an app on the Apple App Store or Google Play Store, or when you make an in-app purchase, the App Stores take a cut of the purchase. For small micro-transactions, that 30% cut is only a few cents per purchase, but the numbers start rising when you look at highly successful apps. Some of them are tired of seeing Apple and Google take up to a third of their profits, and they’re trying to find a way out. Companies, app developers and video game makers such as Netflix, Valve and Epic Games are seeing billions in profit thanks to in-app purchases alone. However, a good portion of that profit is going to Apple and Google – initially it was 30 percent, although that number can now go as low as 15 percent on regular subscription payments. These apps and games create a large portion of the billion-dollar app economy, but the developers feel that Apple and Google’s cut is more like a tax than anything else.