STOP Subscribing to Things on your Phone!!!!

Summary

In 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

00:00

🎬 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.

05:01

🚀 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.

10:01

📱 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.

15:01

🔍 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.

Keywords

💡Standup Comedy Special

A standup comedy special is a recorded performance by a comedian, usually consisting of original material that is often showcased on television or streaming platforms. In the script, the creator mentions having written and recorded their own comedy special during a period of illness, which is set to be released on Dropout TV, emphasizing the personal significance and the creative process behind such a project.

💡Dropout TV

Dropout TV is mentioned as a streaming service catering to a niche audience interested in independent and original comedy series. The service is described as a platform where one can find content not available elsewhere, highlighting its exclusivity and appeal to a specific 'kind of nerd.' The mention of Dropout TV is central to the video's theme, as it serves as the context for discussing subscription costs and practices.

💡Subscription Model

The subscription model refers to a business approach where customers pay a recurring fee to access a service or product over time. The video script discusses the costs associated with subscribing to various services like Dropout TV, YouTube Premium, and Audible, emphasizing the differences in subscription pricing across different platforms and devices.

💡App Store Fees

App Store fees are the charges that platforms like Apple's App Store and Google's Play Store levy on developers for the use of their marketplace to distribute apps. The script highlights the impact of these fees on subscription costs, with a 30% cut being taken from certain subscriptions processed through these platforms, affecting both consumers and content providers.

💡YouTube Premium

YouTube Premium is a subscription service offered by YouTube that includes ad-free streaming, access to YouTube Originals, and other features. The script uses it as an example to illustrate the price discrepancy between subscribing through the app versus the web, with the app subscription costing more due to platform fees.

💡Audible

Audible is an audiobook and podcast platform that offers a subscription service. In the script, Audible is used as another case study to demonstrate how subscription costs can vary depending on whether the subscription is made through the app store or directly via the website, with the latter often being more cost-effective for the consumer.

💡Spotify

Spotify is a music streaming service that is highlighted in the script as an example of a company that has navigated the app store fee structure differently. The video discusses Spotify's decision not to offer premium subscriptions through the Apple App Store due to the high fees, instead directing users to subscribe via their website.

💡Rocket Money

Rocket Money is a personal finance app mentioned in the script as a sponsor of the video. It is described as a tool that helps users manage their money more effectively, including canceling subscriptions and renegotiating bills, which ties into the video's broader theme of financial awareness and control.

💡Anti-Competitive Behavior

Anti-competitive behavior refers to practices that unfairly limit competition in a market. The script discusses this concept in the context of Apple's App Store fees, suggesting that by imposing a 30% tax on competitors' app subscriptions, Apple may be engaging in anti-competitive practices that disadvantage other service providers.

💡Google Play Store

The Google Play Store is Google's platform for distributing mobile apps, similar to Apple's App Store. The script mentions the Play Store in the context of subscription fees and how they compare to those on Apple's platform, noting that Google has made recent changes to its fee structure, reducing the cut it takes from subscriptions after one year.

💡Consumer Choice

Consumer choice is the ability of consumers to select from a range of products or services based on their preferences. The video emphasizes the importance of consumer choice by advocating for transparency in subscription pricing and encouraging viewers to subscribe to services like Dropout TV through websites rather than app stores to avoid unnecessary fees.

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