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Comment by dehrmann

Spotify's problem is it has to pay out ~80% of revenue to rightsholders, so Apple's 15% take doesn't leave you with a viable business. For a time, Spotify handled this by charging more for subscriptions from the App Store. I'm guessing Google wanted to get a big name off what would become the Epic suit. They knew Spotify pays ~2% when processing credit card fees, there's a higher conversion rate with in-app payments, but Spotify has a hard fee limit because of rightsholder payouts, so they found a deal that makes everyone happy. Oh, and GCP.

The marginal cost for Fortnite is lower, so Google kept squeezing. It's standard price discrimination. The problem for Google is it also controls the marketplace.

parent dehrmann 3 years ago

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