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Big Revolution - This is a shakedown

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Welcome to Wednesday's Big Revolution newsletter. Enjoy! – Martin from Big Revolution
 
February 13 · Issue #346 · View online
Big Revolution
Welcome to Wednesday’s Big Revolution newsletter. Enjoy!
– Martin from Big Revolution

Big things you need to know today
  • Kara Swisher interviewed Twitter CEO Jack Dorsey… on Twitter, and it was a mess that highlighted some of the longstanding limitations of the platform.
The big thought
Credit: AbsolutVision on Unsplash
This is a shakedown
On the face of it, it’s a battle so unbalanced that any deal between the two could only go one way.
On one side, we have Apple, a company with enough cash reserves that it could perform terribly for decades and not have to cut costs. On the other, we have news publishing, an industry already beaten to within an inch of its life by rapid change, and desperate for new sources of revenue.
Given the imbalance here, and Apple’s shift to focusing on generating recurring revenue from its customers through services, it’s maybe no surprise that Apple is reportedly asking publishers for a 50/50 split of revenue from its forthcoming subscription news product. Oh, and publishers won’t get any data about who reads their content, either.
In case you’re unfamiliar with such deals, that’s… rather greedy.
The traditional App Store split sees developers getting 70%, and Apple getting 30%. In the early days of the smartphone revolution, that seemed fine, but some developers these days grumble that Apple takes too much and perhaps it should rethink the split. Apple, which has a monopoly over distribution of iOS apps, has no motivation to do such a thing. But if it shifted to a 50/50 split with developers, there would be a riot (well, a lot of angry blog posts, and some developers pulling off the platform, anyway).
Apple’s negotiating position with publishers seems to be ‘you need us more than we need you, so we’re going to milk you for everything we can.’ It’s unlikely to work with many publishers – they might not be swimming in cash, but they do have some dignity… and a platform to shout about the injustice.
My guess is Apple will shift to something more like the traditional 70/30 split in the weeks before its reportedly planned services-focused event at the end of March. That said, I like this whimsical suggestion from Alex Hern, the Guardian’s UK technology editor, too: “Apple should commit to a negative 50% margin. Top up journalistic revenues by spending some of its enormous cash pile.”
One big read
Would you be happy to see your doctor online? Would you be happy to see your doctor online?
A look at the pros and cons of seeing a doctor online, rather than in person.
One big tweet
Matt Navarra
The BIG Instagram Account Purge - Feb 2019

Instagram removed a LOT of fake accounts in the past 24 hours.

Here's a running list of popular accounts who lost followers (updating across the day)

📝 https://t.co/RDSS0rHbxJ https://t.co/18zTbAwMlv
9:32 AM - 13 Feb 2019
That’s all for today...
Back tomorrow with more. Don’t forget, if you’d like to help support the Big Revolution newsletter, you can become a member for $5 per month.
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