Tag: pay

Why Apple will win its App Store antitrust case against Epic

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Epic, the maker of the hugely popular Fortnite game, has gone to federal court to complain about the high fees and strict rules imposed by Apple in its App Store. Going to the App Store is currently the only way iOS users can get Fortnite and other Epic titles. Apple requires developers to use its own proprietary payment system to pay for apps and games, and it charges big developers like Epic 30% of their in-app revenue to do so. Apple says it uses the money to provide an easy-to-use and well-organized app store experience, invest in the platform and tools exclusive to iOS developers, as well as offer strong privacy and security measures to prevent customers from being exposed to financial fraud and apps containing malware. Epic’s case against Apple is highly nuanced and filled with gray areas. It has, to quote The Dude from the Big Lebowski, “a lotta ins, lotta outs, lotta what-have-you’s.” There are strengths and weaknesses to both sides’ main arguments. And with all antitrust cases, the burden lies with the plaintiff—in this case, Epic—to prove Apple’s actions harm competition and ultimately harm the consumer. These are the main points of the case so far, and why I think Apple has an edge over Epic as the trial heads into its final week. Tax or Commission? Apple argues that its 30% commission is the industry standard for digital transactions, and that retail commissions on apps and games have historically been north of 40%. Market forces drove app store operators including Microsoft, Sony, Steam, and Nintendo to converge on that common 30% rate, but just because that is the standard doesn’t mean there isn’t room for improvement Read More …

How Apple’s new audio subscriptions are upending podcasting

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Back in 2005, an ebullient Apple CEO Steven P. Jobs announced the integration of podcasting into Version 4.9 of its desktop iTunes software, calling podcasting “TiVo for radio.” Sixteen years later, during its April 20, 2021, “Spring Loaded” event, Apple has once again signaled a long-term corporate commitment to podcasting. But this time, instead of introducing listeners to the medium, Apple is creating the technical infrastructure for paid subscriptions through its Apple Podcasts service. Creators will now have the option to require a payment for audiences to access their content on Apple’s platform, with Apple taking a 30% cut of the revenue . Paid subscriptions aren’t new. But as scholars who study the podcasting industry , we believe the integration of paid subscriptions into podcasting’s most powerful platforms could reshape the medium in significant ways. Read More …

Miller Genuine Draft and the black hole of space advertising

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This week Miller Genuine Draft aimed to be the latest brand to launch a seltzer. Just not the brand extension product you can buy at a store. No, Miller was going to launch a seltzer into space. The brand had spent the preceding days hyping its stunt of launching a hard seltzer—beer’s latest trendy rival—as a gesture of hostility toward yet another tasteless carbonated beverage in a can. Miller has seen the proliferation of hard seltzer, like so many boozy bunny rabbits, increasingly take shelf space and cultural real estate from the original suds. Perhaps the bulk of its disdain is saved for beer brands that have jumped on the clear bevvie bandwagon such as Michelob Ultra, Bud Light, Corona, and Pabst Blue Ribbon. T-minus 45 minutes until MGD launches a hard seltzer. Into oblivion. Tune into @MillerLite 's page to watch it all go down! pic.twitter.com/nGUTycScvx — Molson Coors Beverage Company (@MolsonCoors) May 13, 2021 This was going to be the “beer’s beer” brand’s own little “Stratos” moment. A live broadcast across social media of an elaborately expensive and ultimately pointless stunt. “We brew beer, it’s what we do, it’s what we love,” says the spokesman. “But then so many other brands started hopping on that bandwagon, then all of a sudden there came this overwhelming expectation for us to do the same.” It wouldn’t have to look far for that expectation. Miller parent company Molson Coors has been more than happy to jump on the trend, with hard seltzers such as Vizzy and Coors Seltzer. Sofia Colucci, VP of the Miller Family of Brands, told AdAge , “This program is really meant to reinforce the role of one of our key brand portfolios—the Miller Family—and that we’re a beer’s beer. The only seltzer launch we’re planning is this launch into oblivion, so yes, Miller will remain dedicated to beer and beer only.” Live at 4pm EST. Seltzer gets the launch it deserves ????. https://t.co/yMNtBbmqaO — Miller Lite (@MillerLite) May 13, 2021 When it finally came time to follow through on this elaborate gimmick, though, the brand blinked. There was no real launch. The rocket exploded before taking off. Read More …

A 20-year Apple veteran just unveiled a wild new kind of speaker

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From the still-iconic iPod to the human curation of Apple Music to the meticulous design of the digital instruments in Logic X, it’s pretty clear that music is deep in Apple’s DNA. That’s why it’s worth paying attention when a 20-year veteran of the company’s industrial design group goes off to start his own audio hardware company. [Photo: Cell Alpha] Christopher Stringer helped design the iPhone, iPad, MacBook, Apple Watch, and other Apple hits. Now he’s the cofounder and CEO of Syng , which is unveiling its first product, a large round speaker called Cell Alpha that sits on a stand on your living room floor or a tabletop. The round enclosure contains woofers on the top and bottom and a trio of mid-range drivers in the middle. The design has a retro-future vibe, as if someone set out in 1970 to envision the sound system of 2050. Stringer believes audio hardware has fallen way behind advances in sound design coming from the entertainment industry today. Audio modes are still basically confined to mono, stereo, or surround sound. “It’s not obvious how limiting that is,” he says. Read More …

After claiming to care about more than profit, corporate America still hasn’t found its soul

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In 2019, 181 of America’s top CEOs made a bold, collective statement to the world: A company’s purpose had to be more than just making a return for its investors. This powerful group argued that there are other stakeholders in the equation that companies need to be answerable to, including customers, employees, suppliers, and the communities these companies serve. This statement flew in the face of the long-running capitalist mantra of maximizing shareholder value, and many experts argued that it was about time. Being the CEO of a publicly traded company today is a whole different ball game than what it was even two decades ago. Consumer activism is far more prevalent today thanks to access to social media. One study estimates that about 38% of all Americans boycott at least one company at any given point in time, with the number of boycotters growing double digits annually. The Fairtrade movement, which ensures that suppliers such as farmers get paid fairly, has been consistently growing in popularity for the past several decades. The conspicuous impact of the Black Lives Matter movement as well as the divisive presidential term of Donald Trump highlighted that companies could no longer remain indifferent to the political opinions of the communities they served. All these macro trends, coupled with an increased urgency around climate change, meant that the public at large warmly welcomed corporate America’s new statement of purpose.  For the optimists among us, it appeared that corporate America had finally taken the first step to discovering its soul. Yet, nearly two years later, we do not have much to show for it. In fact, just a few months ago, one of the more prominent advocates of the corporation-with-a-soul movement, Danone CEO Emmanuel Faber, was unceremoniously removed from his position. Shareholders ousted Faber because he could not generate a return for them during his tenure as CEO. Ironically, his public firing did not generate any uproar from the other stakeholders he had focused on serving. A sobering reality Corporate accountability can be a tricky thing to get right. Despite their elite statuses and high-compensation levels, most CEOs and top managers operate within the same framework as regular employees. They get hired for top jobs based on their skills, networks, and experience, are incentivized to perform well and can get fired if they don’t. Read More …