Apple's App Store Revolt
AKA... The Platform Economy bites back!
In a year of Big Tech Stories, one of the slowest moving—but most interesting—stories is the gradual revolt against Apple’s App Store.
Specifically, Fortnite’s disappearance from the iPhone and developer Epic Games kinda sorta going to war with Apple.
This past June, I wrote about Basecamp’s feud with Apple over Apple’s 30% cut of profits from pretty much any transaction that involves the iOS app store. Basecamp was an early fighter with Apple; now Epic Games is also drawing a line against the sand over the 30% profit cut.
The reasons why companies are revolting now—as opposed to 2018 or 2016 or even 2010—over platform fees are complicated and, honestly, kind of distraction-y. However, there are 3 main factors:
Big tech companies face a significantly less sympathetic US government regulatory regime now from both political parties.
In a tumultous economic year, the 30% cut Apple has traditionally taken looks pretty damn tempting to the companies who have been paying it.
Apple in 2020 is a fundamentally different company than the Apple of the Steve Jobs era, and the tech industry of 2020 is a fundamentally different industry than the tech industry of 2011.
I mean, we live in the Platform Economy. If I want to make money driving strangers around in my car, my best bet to turn a profit is signing up with Lyft or Uber rather than getting a taxi medallion. If I run a t-shirt silkscreening business, I’m at a disadvantage if I’m not selling my products on Etsy and Ebay (and giving those companies a cut). If I run a restaurant and don’t offer delivery through a service like Grubhub or UberEats, I lose out on a significant portion of my customers. Etc etc.
But these platforms all rely on the compliance and cooperation of their vendors in order to operate. A 30% cut of $0 is $0, and as platforms take up a larger percentage of more and more industries, platform vendors are more willing to bite back. See also the equally slow-motion Uber & Lyft driver revolt.
Anyway, lots more to discuss. Let’s get on with it.
Give Money To:
The Florida Rights Restoration Campaign, which pays off outstanding court fees so formerly incarcerated Floridians can vote.
The Big Picture
Netflix corporate is chomping at the bit for employees and contractors to return to working in the office, but other huge tech firms like Google and Facebook are happy with employees working from home (and happy with reducing maintenance upkeep for office space and happy with slashing salaries for employees who move away from San Francisco or NYC…)
It’s almost Rosh Hashanah, the Jewish new year, and Henry Abramson has a really interesting talk on YouTube about Rosh Hashanah and pandemics in Jewish history.
Scientists are looking at how flu season and COVID will influence each other and vice-versa, the CDC says eating in at restaurants is a major transmission vector for COVID, and historians explain how COVID-19 is similar and different to previous national crises.
We don’t want to be all doom and gloom all the time, so here’s Gwern’s list of improvements to daily life in the US since the 1990s.
Marketing/Advertising/PR
What happens when a US public relations firm attempts to influence elections in Bolivia and Venezuela. Hint: Buying a ton of Facebook ads will leave a data trail.
Julie Carrie Wong on how unknown parties in Russia created a fake English-language leftist news site and then hired unwitting freelance journos in the US & UK to write for it. Fave part of the article: “I’ve interacted with editors who do far less than what they were doing, and they paid faster than some publications ... I’m a freelance writer—I’m used to being taken advantage of.”
Media
Robert Andrews writing for Ghost about how writers make a living from their newsletters. Quote: “Solo writers are also business owners and product marketers.”
Joan Donovan arguing that “riot porn” on both TV & the internet is spreading IRL violence.
Researchers at the University of Washington interview journalists covering online disinformation about the challenges of the disinformation/misinformation beat.
ViacomCBS is rebranding CBS All Access as Paramount+ and drastically increasing its content library with 30,000+ television episodes and movies (Side note: Anyone else amused by streaming services always puffing up their library size by treating every TV show episode like a separate title? I sure am). Interesting to see them rallying around the Paramount branding, which has historically been focused on non-US markets for TV.
Tech
ISP and telcoms firm CenturyLink is rebranding as Lumen Technologies.
Verizon is acquiring TracFone in another sign of consolidation in the budget mobile market; the deal was worth $6 billion+.
Fun
Justin Townes Earle (RIP) covering the Replacements.
Awesome project alert: The Langston League is putting together a weekly syllabus to every episode of Lovecraft Country. As they put it, “Many media outlets cover H.P. Lovecraft's works' themes and how they give context to each episode. Still, much like Misha Green's sentiment about reclamation, our syllabus will focus exclusively on the Black innovations and Black history mentioned in each episode.”
You Won’t Believe How This Happened. Australian national treasure Ann Reardon goes on YouTube to show how content farms (and journalism outlets) work with Exposing 8 Viral Video Tricks That Will Blow Your Mind.
Last but not least, The Hard Times hits TOO CLOSE TO OUR SOULS with Guy Who Was “Making a Killing On Robinhood” Doesn’t Bring It Up Anymore.
And a Programming Note:
We’re taking Friday off for Rosh Hashanah. Making a giant brisket, some kugel, roast veggies, apple cake and assorted other good things. See you Monday.
Let me know how I can help with your upcoming projects.
Email me at neal@nealungerleider.com and see how we can work together.
Love and coffee,
Neal
About This Newsletter: Neal Ungerleider is a strategic communications consultant who works with advertising/PR agencies and in-house clients. He worked as a journalist in a previous life. Neal’s newsletter focuses on marketing, media and communications news.
Follow Neal on Twitter, connect on LinkedIn and learn more about his services at nealungerleider.com.