STOP Subscribing to Things on your Phone!!!!
Summary
TLDRIn this video, the creator discusses the pitfalls of subscribing to services through mobile apps, highlighting the significant price discrepancies due to platform fees. They share personal experiences with Dropout TV, Audible, and Spotify, comparing subscription costs on different platforms. The creator emphasizes that subscribing via the App Store or Google Play can lead to higher prices and less revenue for content providers. They advocate for subscribing directly through websites to support creators better and touch on the ongoing disputes between tech giants and app stores over these fees.
Takeaways
- 🎥 The speaker created a standup comedy special during their chemotherapy and recorded it in Los Angeles, which will be released on Dropout TV.
- 📺 Dropout TV is a streaming service for independent and original comedy series not available elsewhere.
- 💰 The cost of subscribing to Dropout is $60 a year or $6 a month, with a potential discount using a coupon code.
- 📱 The speaker advises against subscribing to services through mobile apps due to higher costs associated with in-app purchases.
- 🔍 A comparison is made between the costs of subscribing to YouTube Premium through different platforms, showing a price discrepancy.
- 📊 The script discusses the 30% cut taken by Apple and Android from in-app subscriptions, affecting the final price for consumers.
- 📈 The speaker uses case studies of Dropout, Audible, and Spotify to illustrate the differences in subscription costs across platforms.
- 🚫 Spotify has chosen not to allow premium subscriptions through the iOS app due to Apple's 30% fee, instead directing users to subscribe via the web.
- 💼 The CEO of Dropout confirms that subscribing through Apple or Android results in the company receiving 70% of the revenue, versus a full 100% if done directly.
- 🛒 The script highlights the convenience of managing subscriptions through mobile devices, despite the extra costs.
- 🚀 The video is sponsored by Rocket Money, a personal finance app that helps users manage their subscriptions and save money.
Q & A
What is the main topic of the video script?
-The main topic of the video script is the issue of subscribing to services through apps on your phone, specifically addressing the higher costs associated with doing so due to platform fees.
Why did the speaker start writing a standup comedy special while undergoing chemotherapy?
-The script does not provide specific reasons for the speaker starting to write a standup comedy special during chemotherapy, but it does mention that they recorded the special in Los Angeles and it will be released on Dropout TV.
What is Dropout TV and how is it related to the speaker's comedy special?
-Dropout TV is a streaming service for independent, original comedy series that are not available elsewhere. The speaker's comedy special will be released on this platform.
What is the cost of subscribing to Dropout TV according to the speaker?
-The cost of subscribing to Dropout TV is $60 a year or $6 a month. There might also be a coupon code available for a full year subscription at a discounted price.
Why does subscribing to YouTube Premium through the Apple App Store cost more than subscribing through the internet?
-Subscribing to YouTube Premium through the Apple App Store costs more because Apple takes a 30% cut of every dollar that goes through their ecosystem, which increases the subscription price for consumers.
What is the purpose of the Rocket Money app mentioned in the video script?
-Rocket Money is a personal finance app designed to help users manage their money more effectively. It can help cancel subscriptions, lower bills, set budgets, and save money.
How much does Apple take as a cut from subscription services that use their ecosystem?
-Initially, Apple takes a 30% cut from subscription services that use their ecosystem. After a year of subscription, this cut goes down to 15%.
Why does the speaker recommend subscribing to services on the internet instead of through an app on your phone?
-The speaker recommends subscribing to services on the internet instead of through an app on your phone to avoid the higher costs associated with platform fees, which can be as high as 30%.
What is the situation with Spotify and their subscription fees on different platforms?
-Spotify has managed to negotiate a deal with Google where they don't have to pay the extra fees on Android. However, on iOS, they cannot offer subscriptions through the app due to Apple's 30% cut, making it unprofitable for them.
Why does the speaker believe that it's not ideal for companies to subscribe through the app store ecosystem?
-The speaker believes it's not ideal because it either results in customers paying more for subscriptions or the content providers receiving less money while the platform takes a significant cut.
Outlines
🎬 Subscription Costs and Platform Fees
The speaker discusses their experience with creating a standup comedy special for Dropout TV, a streaming service for niche comedy content. They caution against subscribing to services through phone apps due to higher costs. Using Dropout TV and YouTube Premium as examples, they illustrate the discrepancy in subscription prices when subscribing via the app versus the web. They explain that platforms like Apple and Android charge a 30% fee for in-app purchases, which increases the cost for consumers and reduces the revenue for content providers. The speaker also mentions other services like Audible and Spotify, noting similar pricing issues due to platform fees.
🚀 Sponsored Content: Rocket Money App
The speaker introduces a sponsored segment for Rocket Money, a personal finance app designed to help users manage their subscriptions, lower bills, and save money more effectively. They share a personal anecdote about accidentally maintaining an unnecessary subscription, which could have been avoided with an app like Rocket Money. The app offers features to cancel unwanted subscriptions and renegotiate bills, potentially saving users up to $740 a year. The speaker encourages viewers to visit RocketMoney.com/green to start using the app and gain more control over their finances.
📱 The Impact of App Store Fees on Subscription Services
The speaker delves deeper into the issue of app store fees, specifically the 30% cut taken by Apple and Google from subscription services. They express frustration at the inability of companies to openly discuss these fees and the impact on pricing. The speaker contrasts the policies of different services, such as Spotify, which refuses to allow in-app subscriptions on iOS to avoid the fee, and Dropout TV, which absorbs the fee to maintain a consistent subscription price across platforms. The speaker also highlights the financial implications for content creators and services, who either have to accept reduced revenue or pass the cost onto consumers.
🔍 The Reality of Subscription Services and App Store Policies
The speaker wraps up the discussion by sharing more insights about app store fee structures, mentioning that after a year, the fee taken by the App Store reduces to 15%. They ponder the reasons behind these policies and the competitive disadvantages they create for certain services. The speaker also touches on the secret deals between Google and companies like Spotify, which allow for reduced fees. They conclude by recommending that viewers subscribe to services like Dropout TV through their website instead of the app to ensure more revenue goes to the content creators and service providers, and they thank Rocket Money for sponsoring the video.
Mindmap
Keywords
💡Standup Comedy Special
💡Dropout TV
💡Subscription Model
💡App Store Fees
💡YouTube Premium
💡Audible
💡Spotify
💡Rocket Money
💡Anti-Competitive Behavior
💡Google Play Store
💡Consumer Choice
Highlights
The speaker started writing a standup comedy special during chemotherapy and recorded it in Los Angeles for Dropout TV.
Dropout TV is a streaming service for niche, independent, and original comedy series not available elsewhere.
The speaker advises against subscribing to services through phone apps due to higher costs.
Subscription costs for Dropout TV are $60 a year or $6 a month, with no difference whether subscribed through phone or internet.
YouTube Premium costs vary depending on the platform: $13.99 on Android app, $18.99 on iOS app, and $13.99 on the internet.
The discrepancy in pricing is due to Apple and Android taking a 30% cut of subscriptions made through their ecosystems.
The speaker uses case studies of different services like Audible and Spotify to illustrate the impact of the 30% cut on subscription costs.
Spotify cannot be subscribed to through the iOS app due to Apple's 30% fee, which Spotify refuses to pay.
Dropout TV and Audible absorb the 30% cut, resulting in less revenue for them and higher costs for subscribers on certain platforms.
The speaker emphasizes the convenience of managing subscriptions through phone apps but questions the value of the 30% cut.
Rocket Money, a personal finance app, is introduced as a tool to manage subscriptions and save money.
The CEO of Dropout TV confirms that they make 70% as much when subscribed through Apple or Android versus direct subscription.
Audible's pricing discrepancy is highlighted, with the company making $28 on the App Store and $38 when subscribed online.
The video discusses the anti-competitive behavior of Apple's 30% tax on competitors using the App Store's in-purchase service.
Spotify's conflict with Apple over the 30% tax and the inability to inform consumers of cheaper alternatives is detailed.
The speaker recommends subscribing to services like Dropout TV on their website instead of through the App Store to avoid the 30% tax.
The video concludes with a reminder of the value of managing subscriptions through apps and the need for a fairer system.
Transcripts
hello you may have heard that while I
was sick and doing chemo I started
writing a standup comedy special and
then I recorded that special in Los
Angeles and soon it is going to be
coming out on Dropout TV which if you
don't know what that is it's basically a
streaming service for a certain kind of
nerd independent funny adree original
comedy series you won't find anywhere
else that's definitely true and my
comedy is going to happen on it but this
made me think about a thing that I've
always wanted to make a video about that
I've never made a video about which is
that you should never subscribe to
something through an app on your phone
this is should this is a no no you
should never do it and I want to talk
about why so let's start with Dropout
let's see what it cost me to sign up for
Dropout $60 a year $6 a month that's
what it's going to cost me if I'm going
to become a Dropout subscriber though I
think it's a coupon code for a full year
where you can get a discount and if I go
and I subscribe on my phone it cost the
exact same amount but that's weird
because that is not the case for our
little friend YouTube premium I asked
recently on Twitter odd request if you
are not a YouTube premium subscriber can
you go to subscribe and then send me a
screenshot of how much it says it costs
here is Skyler who says like this and
and it costs
$13.99 to sign up through the app on
Android and then we've got Kimmy it says
$18.99 a month if you sign up through
the app on iOS so on the Apple operating
system and then we keep scrolling down
we find some people who did it on the
regular old internet just went to
youtube.com try one month for Z but it
is $13.99 a month so why was it so much
more expensive for Kimmy than for
everybody else and April is mad I'm
jealous of the $13.99 replies I've been
a premium subscriber for a while and I
pay $19 a month what's going on why is
April paying $19 a month this is
frustrating for me in particular because
ow I my freaking funny bone now this is
frustrating for me in particular because
I want people to sign up for YouTube
premium and it is wild to me that they
can't say why this is happening they
won't say why it's happening and yet
they are doing it anyway and if it's on
Android or the Internet it's $14 a month
whereas if it's through the App Store
Apple app for YouTube the YouTube app on
the Apple App Store it's $19 a month why
is this it's because both Apple and
Android take a 30% cut of absolutely
every dollar that gets sent through
their ecosystem now not absolutely there
are weird exceptions for example YouTube
is owned by Google which also owns
Android and so they don't charge YouTube
the extra percentage or if they do they
don't care that they charge it because
they get that money anyway to illust
stra I think we should open
sheets got to create a new sheet here
you guys don't subscribe through your
phone we're going to look at a few
different case studies here and it's
going to help us understand what's going
on so drop out a $6 $6 $6 no matter
where you subscribe at $6 a month
audible let's go buy some extra credits
on audible.com the most popular is three
extra credits for $37.99 let say that's
$38 so we're just going to do three
credits for $38 on the internet and on
the App Store let's bup that Bubby open
what are we doing I don't know how to do
this I guess I go to my profile probably
I go to my profile
maybe I don't know how do you do it
they're going to be
$40 that's interesting and I I I don't
have the Android number whereas Spotify
Spotify I also did a little bit of
research out to people I was like hey
take those screenshots of the Spotify
situation and we did and there are a
number of interesting things going on
here so this person posted you can get
it for
$10.99 and I was like okay that's the
normal price that you pay on the
internet
and then I said where do you live I live
in America so it's not at this different
place click that button and then see
what happens it takes you to what this
person called the normal payment page it
says you can pay for your Premium plan
directly through Spotify or using your
Google Play account so Google play uh
then is
$10.99 but so that internet is 11 at
Google Play is 11 but if you are on iOS
and you go to subscribe you get one
premium account cancel anytime you can't
upgrade to premium in the app we know
it's not ideal what Spotify solution to
this problem is uh with Google they have
worked at a deal where Google doesn't
charge them any extra for Spotify
specifically Dropout pays that cut but
Spotify doesn't why I don't know I don't
know but they worked it out but Apple
did not work out this deal with Spotify
so it is UNP purchasable you cannot do
it but they can't tell you why you can't
upgrade to premium in the app we know
it's not ideal they can't say go to the
Internet they definitely can't say
because obviously YouTube would it's $19
if you buy it through the app but $14 if
you go to youtube.com and buy it because
apple is charging a tax whereas Android
isn't charging the tax on the YouTube
thing because Android and YouTube are
owned by the same company now what I
will say is there's kind of like one
good thing about subscribing to stuff
through your phone and it is that you
can go and look at the things that you
are subscribed to through your phone all
in one place so what am I subscribed to
I'm subscribed to how Jays say
pronunciation guides cuz that's very
important to my job New York Times audio
Apple TV plus find me gluten-free all
Trails uh clean up for cleaning up my
phone storage which uh and then last
year Dropout because I did this before I
realized the situation and I paid for a
whole year this is actually very nice to
have it shows me all of these
subscriptions I have in one place I can
just go in and I can cancel them and
that's nice that like that's a service
that I feel like is being provided I
just don't think it's worth 30% of the
money I'm paying these companies for
Apple to take it before it gets to the
company for my subscriptions outside of
the Apple ecosystem I don't have a list
like this that is as easy to find but I
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today so I wanted to make sure that this
was actually the case so I texted the
CEO of Dropout because of course I know
this man now which is very cool for
confirmation if I subscribe to Dropout
on my phone or online it costs the same
amount but you get a different amount
and he replies if you subscribe using
Apple or Android we make 70% as much
versus direct are you kidding me that
just seems like such a ridiculous
situation to be in the question is why
not do it like Spotify where Spotify
just says you cannot sign up on your
phone it's just not worth it for us to
be sending those 30% out to Apple so
just don't do it which is honestly
ridiculous I know roughly how much
Spotify pays to record labels they pay
about $7 of every subscription goes
directly to actually license the music
and so if Spotify costs $11 they only
have one choice they cannot have three
of those dollars go away first and then
spend seven of them cuz that's all of
the money they simply can't do it like
that's not on the table for them having
somebody sign up unless they charged
more and they couldn't say this is
what's really frustrating for me they
can't say it's cheaper it's against the
terms of service of the App Store it's
cheaper if you do it somewhere else here
you can do it here if you want if you're
just lazy like sometimes I buy an
audible credit on my phone even though I
know it's more expensive because it's
not that much more expensive because I'm
lazy so if I'm lazy you could have the
extra money that goes to Apple you can't
say that it's against Apple's terms of
service and they are now of course suing
each other over this I'm pretty sure
Spotify apple soup oh oh wow yeah so
this is frequently asked questions
there's this is the 30% what is what is
Spotify is getting getting messy here
ooh Apple seeks to impose a 30% tax on
competitors like Spotify that use the
app store's in purchase service if we
use it we have to increase prices for
consumers yes but to offset the 30% tax
Spotify initially raised our prices from
€1 EUR to3 per month but then Apple
music launched to 10 and I wanted to
murder someone one that is textbook
anti-competitive Behavior there's this
thing that other people have to pay they
cannot have a product cuz cuz Spotify
and apple music are paying the same
deals to the record labels it's $7 for
both of them Apple can have that be
profitable because they don't have to
pay the tax they can have to be
profitable at 10 at $10 whereas Spotify
cannot be profitable at $10 because they
have to send 30% of the money to Apple
before they get their like bit that they
then have to send to artists and record
labels textbook the question
then is why does dropout cost the same
on the Internet or the app store or
Android so the Dropout cut here they're
making
$4.2 per month and then interestingly
with audible that's wild they're making
$28 if you do it on the App Store but
they are making $38 if you do it online
so the cost is a little higher but the
amount that they make is much lower well
then why am I paying $38 on the internet
if it only costs you 28 give me a better
deal Audible and this isn't a onetime
thing this is absolutely every time you
get charged every time you pay that
subscription apple is getting $1.80 and
Dropout is getting $420 hello I'm
editing this video right now and I got
more information from the CEO of Dropout
apparently the this is just context I I
it doesn't really change the argument at
all but after a year of a subscription
the app store's cut goes down to 15% so
at first it's 30% but once you're
subscribed for a year then it's 15% and
on the Play Store it's always 15% for
subscription which is a relatively new
change and they are making these changes
specifically because it is very clearly
anti-competitive behavior for them to
take a subscription where we we're are
like we're it's not like a one-time
payment to take a subscription payment
and be like you know I'm going to take
like 30% of that money every time so
there are there have been some changes
but I felt like it was a big enough deal
for me to include it here okay back to
the video the question is is it worth it
for Dropout to get you to subscribe
instead of having a little note in the
app that says you cannot subscribe on
the app you have to go subscribe you
can't even say you have to go subscribe
on the internet you can just say you
can't subscribe on the app that's what
Spotify does so it would just have to be
a note like this like you can't
subscribe to Dropout TV in the app we
know it's not ideal you figure it out so
there are two outcomes when you
subscribe to something on your phone one
like either you spend more money as in
the case of YouTube premium so you are
SP spending $19 a month actually
actually very suddenly interested in
this if you subscribe to it on the
Internet or on Android it's $14 a month
you actually YouTube is making less than
that with the $19 a month in the App
Store so they are they're making $13.30
apple is making almost six bucks off of
people signing up for YouTube which
Apple has nothing to do with but it
apparently is worthwhile for YouTube to
have that option available because
people would otherwise not as easily
sort of move from the sub like I would
like to subscribe to actually
subscribing and so they just charge you
more they charge you more and then they
make less Dropout charges you the same
and then they make much less so either
we're in a situation where you are
paying extra and Apple's getting a bunch
of extra money or you are paying the
same amount and the people who are
actually providing the service for you
the content that you like whether it's
Turtles all the way down on Max or it's
my special on Dropout or it's an
audiobook on Audible those people are
getting less money and Apple's just
taking 30% so we just need to stop it's
bad it's not a good idea to buy things
through the App Store I get the idea
it's that Apple created this thing they
created this thing right they created
this beautiful amazing remarkable device
which I'm not showing you because
there's a picture of my son when I open
it and they created the app store and
they maintain the app store and they
make sure that the stuff on the App
Store is good and that it's not going to
hurt you and that people have a lot of
trust in the system and all that's
valuable so I get that they should take
a cut I just don't get that they should
take the cuts the way that they're
taking the cuts and I also don't get why
they won't just let people say hey if
you don't want to use the app store
ecosystem you can come buy this thing
that's obviously credible because it's
freaking Spotify or YouTube come buy it
somewhere else where you don't have to
pay this 30% tax and I also find it
frustrating that with like apple music
and Apple tv plus that they could have
these products that are like 30% cheaper
than everybody else's products and
YouTube's doing the same thing over on
Android where it's it's cheaper to get
it on Android than it is on Apple
because Google isn't charging YouTube
that extra money and they're also for
some reason not charging Spotify which
is weird and I would love to know why
why what is that about a secret Google
deal let Spotify by completely bypass
Android's App Store fees when when was
this that came out 2023 fairly recently
0% commission fees when it uses its own
payment processor or just 4% when it
uses to pay with Google oh my God this
is a mess it was a secret Google fought
to keep the Spotify numbers private
during its antitrust fight with epic
saying that they could damage
negotiations because they're also
because epic also has to pay that thing
and epic and Google are having a lawsuit
about it because epic was like GH like
literally did the thing where they were
like hey just go buy it somewhere else
and that was against the terms of
service and blah blah blah they had to
have a big fight about it Google
acknowledged Harrison's testimony and
said a small number of developers that
invest more directly in Android and play
may have different service fees as part
of a broader part this is so mey
mouthed ah these key investment
Partnerships allow us to bring more
users to Android and play they like
because here's what happened Spotify was
like fine we won't be on your platform
anymore we just won't have the the app
there and Google was like okay fine you
don't have to share money which wouldn't
that be wild to wake up one day and
Spotify is like nah I'm not gonna we're
like on oh man I don't know wouldn't you
think that Apple would be like great
people more people will sign up for
YouTube music then maybe not I don't
know it's a mess I'm glad I'm not in
charge all this is to say that it may be
that you're signing up for Dropout
sometime in the near future because you
want to see my standup special and in
that case I think you should go to
Dropout TV's website and subscribe there
and then link your phone so that you can
watch it on your phone later and have
the money go to the good people at
Dropout who are amazing and who I like
very much instead of going to Apple who
enough money there's only thing you can
say about Apple is that they have enough
money again thank you to Rocket money
for sponsoring this video if you want to
check it out it's rocket money.com green
and that's the end ry.com slank green
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