GoKawiilApple's App Store is quietly a major source of the company's revenue. Every time an iPhone user subscribes to a service through Apple's billing platform, the Cupertino giant skims up to 30 percent off the top of each recurring charge. The practice has been so brazen that a court ruled Apple must allow third-party billing to be offered, then, last year, the same court found the company in contempt for violating that ruling when it charged developers a comparable fee to implement their own billing tools.
But app developers had already adjusted to Apple's fee skimming long before the court case was decided. Rather than eat a 15-30 percent loss on subscription revenues, many developers simply offset those costs by charging customers more when they subscribe through the App Store. A service that might be $10 when you subscribe on the company's website becomes $13 when you subscribe on the App Store. It's a phenomenon that's become known as the "Apple tax."
YouTube Premium is a prime example. We've noted that some users can swap existing music subscriptions for YouTube Premium, but it's a different story when subscribing through the App Store. Indeed, when we look at pricing for YouTube Premium, we can see Google charging an Apple Tax. When subscribed to through the YouTube website, the monthly subscription cost for an individual is $16. However, head to the App Store, and the price tag increases to $21 a month. That's $5 leaving your wallet each month for no reason other than helping Google to cover Apple's tolls, making it much harder to get your money's worth from YouTube Premium.