The fact that Apple takes a 30% cut of subscriptions purchased via the App Store isn’t news. But since the company threatened to boot email app Hey from the platform last week unless its developers paid the customary tribute, the tech world and lawmakers are giving Apple’s revenue share a harder look.

Although Apple’s Senior Vice President of worldwide marketing Phil Schiller denied the company was making any changes, a new policy will let developers challenge the very rules by which they were rejected from the platform, which suggests that change is in the air.

According to its own numbers, the App Store facilitated more than $500 billion in e-commerce transactions in 2019. For reference, the federal government has given out about $529 billion in loans to U.S. businesses as part of the Paycheck Protection Program.

Given its massive reach, is it time for Apple to change its terms? Will it allow its revenue share to go gently into that good night, or does it have enough resources to keep new legislation at bay and mollify an increasingly vocal community of software developers? To examine these questions, four TechCrunch staffers weighed in:

• Devin Coldewey
• Lucas Matney
• Sarah Perez
• Darrell Etherington

Devin Coldewey: The App Store fee structure “seems positively extortionate”

Apple is starting to see that its simplistic and paternalistic approach to cultivating the app economy may be doing more harm than good. That wasn’t always the case: In earlier days it was worth paying Apple simply for the privilege of taking part in its fast-expanding marketplace.

But the digital economy has moved on from the conditions that drove growth before: Novelty at first, then a burgeoning ad market supercharged by social media. The pendulum is swinging back to more traditional modes of payment: one-time and subscription payments for no-nonsense services. Imagine that!

Combined with the emergence of mobile platforms not just as tools for simple consumption and communication but for serious work and productivity, the stakes have risen. People have started asking, what value is Apple really providing in return for the rent it seeks from anyone who wants to use its platform?

Surely Apple is due something for its troubles, but just over a quarter of a company’s revenue? What seemed merely excessive for a 99-cent app that a pair of developers were just happy to sell a few thousand copies of now seems positively extortionate.

Apple is in a position of strength and could continue shaking down the industry, but it is wary of losing partners in the effort to make its platform truly conducive to productivity. The market is larger and more complicated, with cross-platform and cross-device complications of which the App Store and iOS may only be a small part — but demanding an incredibly outsized share.

It will loosen the grip, but there’s no hurry. It would be a costly indignity to be too permissive and have its new rules be gamed and hastily revised. Allowing developers to push back on rules they don’t like gives Apple a lot to work with but no commitment. Big players will get a big voice, no doubt, and the new normal for the App Store will reflect a detente between moneyed interests, not a generous change of heart by Apple.

Source: Tech Crunch Mobiles | Four perspectives: Will Apple trim App Store fees?

YouTube is taking direct aim at TikTok. The company announced on Wednesday it’s beginning to test a new feature on mobile that will allow users to record 15-second long multi-segment videos. That’s the same length as the default on TikTok as well as Instagram’s new TikTok clone, Reels.

Users in the new YouTube experiment will see an option to “create a video” in the mobile upload flow, the company says.

Similar to TikTok, the user can then tap and hold the record button to record their clip. They can then tap again or release the button to stop recording. This process is repeated until they’ve created 15 seconds worth of video footage. YouTube will combine the clips and upload it as one single video when the recording completes. In other words, just like TikTok.

The feature’s introduction also means users who want to record mobile video content longer than 15 seconds will no longer be able to do so within the YouTube app itself. Instead, they’ll have to record the longer video on their phone then upload it from their phone’s gallery in order to post it to YouTube.

YouTube didn’t provide other details on the test — like if it would later include more controls and features related to the short-form workflow, such as filters, effects, music, AR, or buttons to change the video speed, for example. These are the tools that make a TikTok video what it is today — not just the video’s length or its multi-segment recording style.

Still it’s worth noting that YouTube has in its sights the short-form video format popularized by TikTok.

This would not be the first time YouTube countered a rival by mimicking their feature set with one of its own.

The company in 2017 launched an alternative to Instagram Stories, designed for the creation and sharing of more casual videos. But YouTube Stories wouldn’t serve the TikTok audience, as TikTok isn’t as much about personal vlogs as it is about choreographed and rehearsed content. That demands a different workflow and toolset.

YouTube confirmed the videos in this experiment are not being uploaded as Stories, but didn’t offer details on how the 15-second videos would be discoverable on the YouTube app.

The news of YouTube’s latest experiment arrived just ahead of TikTok’s big pitch to advertisers at this week’s IAB NewFronts. TikTok today launched TikTok For Business, its new platform aimed at brands and marketers looking to do business on TikTok’s app. From the new site, advertisers can learn about TikTok’s ad offerings, create and track campaigns, and engage in e-learning.

YouTube says its new video test is running with a small group of creators across both iOS and Android. A company spokesperson noted it was one of several tests the company had in the works around short-form video.

“We’re always experimenting with ways to help people more easily find, watch, share and interact with the videos that matter most to them. We are testing a few different tools for users to discover and create short videos,” a YouTube spokesperson said. “This is one of many experiments we run all the time on YouTube, and we’ll consider rolling features out more broadly based on feedback on these experiments,” they added.

Source: Tech Crunch Mobiles | YouTube’s latest experiment is a TikTok rival focused on 15-second videos