Brands Bypassing App Stores and the Value of a Marketplace

on August 23, 2018
Reading Time: 4 minutes

An important debate is brewing. Along with this debate, an interestingly strategic arc for brands may be emerging. The discussion of how much a marketplace holder should receive is not new. It has become more heated as of late as reports that Netflix is looking at ways to avoid Apple’s cut of subscriptions generated from within the Netflix App. This move is not surprising as Amazon has been doing this year with digital content (only place Apple’s cut is applicable). I’m reminded of this every time I purchase a Kindle book on Amazon, which is about twice a quarter, and I have to leave the Amazon app, go to Amazon.com on Safari, buy my book for Kindle, then go back to iOS app to download and start reading my book. There is much friction in this process, and it is annoying, but I do not blame Amazon one bit.

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