Don’t be affected by the Apple tax.
Apple’s App Store is still the company’s biggest source of revenue. Every time an iPhone user signs up for a service through Apple’s payment platform, the Cupertino giant takes up to 30 percent more on each recurring charge. This practice was so embarrassing that the court decided that Apple should allow third-party billing to be provided, and last year, the same court found the company in contempt of violating that decision when it charged developers the same fee to use their payment tools.
But app developers had already adapted to Apple’s costs long before the court case was decided. Rather than suffer a 15-30 percent loss in subscription revenue, many developers simply offset those costs by charging customers more when they sign up through the App Store. A service that might cost $10 when you sign up on the company’s website becomes $13 when you sign up on the App Store. It is known as the “Apple tax.”
YouTube Premium is a good example. We’ve noticed that some users can switch existing music subscriptions to YouTube Premium, but it’s a different story if they subscribe through the App Store. Indeed, if we look at YouTube Premium prices, we can see that Google is charging Apple a Tax. If you subscribed through the YouTube website, the monthly subscription fee for an individual is $16. However, head over to the App Store, and the price tag jumps to $21 per month. That’s $5 leaving your wallet every month for no reason other than to help Google pay Apple’s tolls, making it very difficult to get your money’s worth from YouTube Premium.
Apple’s App Store is great for managing subscriptions, but you don’t have to pay extra for YouTube Premium
Some people prefer to charge for their subscriptions through Apple’s App Store because of how vulnerable the first-party payment can be. Once you give your credit card information to other companies, it’s almost impossible to get it out of your pocket. After digging through the settings menus to find the “cancel subscription” button, which seems deliberately hidden like Waldo, you are made to go through three confirmation screens, presented with a special, one-time-only discount, and then made to fill out a survey explaining why you want to cancel. And that’s if you’re lucky. Some subscriptions from smaller properties will require you to send an email, or you may resort to changing your credit card to stop the subscription from being charged.
There may be cases where paying Apple’s subscription fee costs a few dollars for the peace of mind that comes with the ability to cancel it with just a few taps on your smartphone. Apple would like to continue to collect its money from subscriptions, but the company also wants you to enjoy using your iPhone so it is not directly encouraged to act like a gremlin with your credit card.
Still, it’s worth saving money where you can. Thankfully, YouTube Premium makes it easy to unsubscribe from its payment gateway. Canceling is a relatively straightforward process, and Google won’t make you feel bad about your decision to stop funding it. If you’re currently overpaying for YouTube Premium through the App Store, or if you’ve been thinking about signing up for the service, you’d better do so away from the tax collector at the gates of Apple’s walled garden.
