Facebook won't launch its news subscription service on iOS due to Apple's 30 percent tax


It appears that Facebook and Apple couldn't agree on terms regarding the launch of the latter's news subscription tool, a new report claims. As such Facebook's news subscription service will only be available on Android phones, not iPhones.

The main issue (the only one?) is the standard 30 percent tax that Apple takes from any subscription revenue. On the other hand, Facebook wants to give all the money from the news subscription service to publishers.

While discussions are still underway, the negotiation is at an impasse, so Facebook has decided to go ahead with the launch of the news subscription service, but only on Android devices.

The new service will be available to Android users in the next few weeks and will allow publishers to use paywalls on “Instant Articles” which will be enabled after users have read 10 of the publisher's articles in a month.

Furthermore, the “freemium” version of the news subscription service will allow publishers to put paywalls around individual articles.

As mentioned earlier, Facebook will not take any money from the publishers, however, Apple's absolutely must have a piece of the pie, and that's a problem.

source: Recode

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32 Comments

1. submar

Posts: 713; Member since: Sep 19, 2014

Fruit of sin.

2. redmd

Posts: 1935; Member since: Oct 26, 2011

"Apple's absolutely must have a piece of the pie, and that's a problem." Apple just can't get enough.

3. rj_78

Posts: 74; Member since: Sep 11, 2014

Tbh they need apple to make it popular

4. L0n3n1nja

Posts: 1557; Member since: Jul 12, 2016

Maybe in the US, but if it's a global service not really.

31. Stranded87

Posts: 51; Member since: Sep 30, 2014

Even in the US Apple doesn't quite have as much market share as Samsung and has only around a third of the total smartphone market, so it will be a loss, but not enough to stop it being popular.

6. AxelFoley unregistered

Facebook needs Apple to make something popular. Okay. Yet, they are launching it anyway without that 14% share of the market.

7. ahmadkun

Posts: 586; Member since: May 02, 2016

lmao .....

12. kiko007

Posts: 7493; Member since: Feb 17, 2016

That 14% is worth more than the 86% of Android users combined. That's the value of targeting people who will actually pay for apps and services, rather than pirating them.

13. darkkjedii

Posts: 31034; Member since: Feb 05, 2011

No it’s not, and you make seem as though the whole of that 86% of android users pirate stuff. iOS users are not pure dude, they’re people, just like android users. If I missed your point, then make it more clear.

14. TechNeck

Posts: 651; Member since: Aug 29, 2014

Completely True

17. kiko007

Posts: 7493; Member since: Feb 17, 2016

It's not only about pirating stuff fam, it's business model differences and the general positioning of each OS. Facebook generates a significantly higher amount of revenue on iOS than Android, likewise with Spotify and similar services. Reason? Look at who's buying which phone the majority of the time. The ASP Android phone in the U.S. is around $235, versus the ASP for the iPhone which is $585. From that statistic alone, you can see iOS users hold more disposable income to spend on things like in app purchases and subscriptions. Mind you, that's just the U.S., where the two platforms hold almost equal market presence. Once you go out the placed such as India, where the separation of market share is staggeringly in favor of Android, the stats get even more telling. There is also the fact that although Google Play is on around 2.5x the number of devices, it makes one 1/4th the revenue of the App Store. Keep in mind that further analysis predicts that the combined total of all Android's app stores have yet to surpass the total revenue generated by Apple's sole market place, although that's expected to change this or next year. How is that possible? Simple: rampant pirating and lack of consumer spending power. Android has always and will always be like that due to the nature of Google's business model. So no, not all Android users pirate, just like not all iOS users buy apps. However, the overwhelming majority of statistics point to a combination of piracy and tight wallets as the reason why Android is second class from a development perspective.

19. darkkjedii

Posts: 31034; Member since: Feb 05, 2011

I see from your links, both platforms have piracy issues, but it’s worse on android. That is understandable due to the open source nature...thanx for clarifying. Post 12 was all bad.

23. xfire99

Posts: 1205; Member since: Mar 14, 2012

You are just full of bulls**ts! What is Googles business based on and main revenue comes from? Why are thers so many free apps/games on playstores? Buy in game and ads! Reasons articles says android have most pirates are Android dominates worldwide with 80% and ofc its more pirated apps/games. Same as Windows dominated total and have most pirated games/softwares. https://venturebeat.com/2015/11/02/piracy-is-a-big-problem-for-premium-iphone-and-ipad-games-much-more-than-you-realize/ "ur most downloaded iOS game title, Bocce Friends, is being massively pirated, with 97 percent of the downloads during the last year being “illegitimate.” Most downloaded iOS games and ONLY 3% is legitimate! Afford to buy a 600$ iPhone and too cheap even pay 0.99$ for a game! The most popular OS always have most piracy! If OSX and iOS dominate the market and there would be most piracy. But now they dont, that simple!

24. kiko007

Posts: 7493; Member since: Feb 17, 2016

"Why are thers so many free apps/games on playstores? Buy in game and ads!" Fam both App Stores work that way. The majority of apps on both platforms are released free with IAPs or ads, yet somehow, Apple makes more. You can try and sugarcoat it with whichever spin you can come up with, but ultimately its pointless.

32. xfire99

Posts: 1205; Member since: Mar 14, 2012

lol. That the best u can come up with? Always with bad excuses and have nothing to say. Android is the most popular OS and will always be!

29. iushnt

Posts: 3103; Member since: Feb 06, 2013

Agreed!! +1

16. maherk

Posts: 6876; Member since: Feb 10, 2012

You need to take your head out of your butthole for once and realize that we are living in 2017, not 2011!

18. kiko007

Posts: 7493; Member since: Feb 17, 2016

You could try doing some actual research. Here are a few articles from 2015... aka two years ago: http://www.businessinsider.com/android-piracy-problem-2015-1 http://www.makeuseof.com/tag/piracy-android-how-bad-is-it-really/ This last link is more of a "Why you shouldn't" article, but I'm putting it here so some of the potential pirates here can hopefully see the error of their ways, to an extent: https://www.google.com/amp/s/www.androidauthority.com/pirated-android-apps-170550/amp/

21. cmdacos

Posts: 4200; Member since: Nov 01, 2016

Can you please provide reference of what 14% of high end Android users spend in comparison? No? Ok...

22. kiko007

Posts: 7493; Member since: Feb 17, 2016

What would that change specifically?

30. iushnt

Posts: 3103; Member since: Feb 06, 2013

It would change actually. A note buyer won’t be as same as Galaxy A7 buyer.

25. AxelFoley unregistered

So, Apple launched 1 app on Android, and it is a subscription music service. Please be sure to call Apple and present them with your data so you can tell them how dumb they are.

26. kiko007

Posts: 7493; Member since: Feb 17, 2016

TBF... Apple Music on Android seems pretty trash from what I've heard, so maybe they just wanted to get their feet wet in the Android ecosystem.

28. rj_78

Posts: 74; Member since: Sep 11, 2014

Well that 14% covers whole world. Only few countries will get this app and there iphone are pretty popular. Many asian countries will not see this app. So yes Apple MIGHT help them. Just my opinion

11. sissy246

Posts: 7111; Member since: Mar 04, 2015

LMAO, NO they don't

5. Nopers unregistered

Yes because Apple should absolutely give preferential treatment to Facebook. If the small time service providers get taxed at 30% then so should the big service providers. You can’t force Apple to give their service away for free for everyone so you suck it up and pay the tax.

8. technitude

Posts: 263; Member since: Dec 19, 2013

When Taylor Swift protested an Apple music tax... Apple gave in. Apple's fees are not set in stone.

9. darkkjedii

Posts: 31034; Member since: Feb 05, 2011

Apple doing what Apple does. Apple being Apple, why is it even a surprise?

10. Tipus

Posts: 868; Member since: Sep 30, 2016

Good. Facebook is evil :)

27. Cyberchum

Posts: 1066; Member since: Oct 24, 2012

Yes, Facebook is so evil that it's trying to give publishers the whole cake!

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