Music service payments, are subject to Apple transaction fees?

Question

Hi,
I've got a few questions regarding a marketplace web platform, where users interact with music studios/producers.

Would like to understand how is the following use-case* considered in terms of Apple transaction fee rules?
The use-case:
- User can access the platform website or use ios app (same credentials and content)
- User downloads ios app (it's free)
- User requests a service provided by a music studio or producer
- Music studio/producer creates requested work (play instruments, hire musicians, etc)
- Music studio/producer provides files digitally and requests payment
- User has to make payment to access the download (this is distributed to the user email address and may be of a format only compatible with certain music software)

- Payment is done through Stripe and is paid in full (except Stripe fees) to the music studio/producer
- User can request amends (prior or post-payment)
- User can use the music studio physically
As far as I understand these are not subject to Apple transaction fees. But this is a bit confusing because

music studios deliver their goods digitally and AFAIK Apple charges 30% for any digital good. I just can't

find a way to explain that to the users and the service providers. How's that?
Would appreciate some feedback, please!

App Store

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Posted by

punkbit

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Answer 1

>It's a huge investment, and might be quite troubling a struggling business if it doesn't pass the app review. Is there an email contact or a phone number to get feedback from Apple at all?

Ah...a pre-review...got it.

No. There are no pre-reviews, no one here can promise what review will/won't accept/reject, all you can hope for here are the anecdotal opinions of other devs. In the end, just like the rest of us, you'd need to take your chances with the review gauntlet.

>...app reviewer might not understand what a musician does, a studio, composer, or producer.

They're all makers, right? A musician makes music, a studio makes sounds, a composer makes melodies, and a producer makes decisions.

However, this isn't about 'what' - it's about 'how'. How the app delivers services -and- content, and how all involved intend to make monies off of them. That's all review needs to understand. Also, how -you- feel about Apple taking 30% before all the other players get their cut...

In the end, you might want to split things up, and use an app simply as one component of your business model, not the end-all. You can always build out, once you gain more experience with Apple's ecosystem, etc.

Good luck.

Posted by

KMT

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Answer 2

>As far as I understand these are not subject to Apple transaction fees.

Correct. Nothing that mandates IAP in your use case.

>music studios deliver their goods digitally

You're conflating what a customer of that studio creates using the studio equipment, vs. content digital content otherwise consumed in-app. The studio is selling and billing for a service.

Your web-based marketplace 'service' is just that...web based - platform agnostic. It doesn't need an app, only a web client.

What exactly prompts you to ask about Apple's fees?

If this is about studio-service clients selling digital content post-studio to end users for consumption in an app, that's another topic.

Posted by

KMT

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Answer 3

>It's a huge investment, and might be quite troubling a struggling business if it doesn't pass the app review. Is there an email contact or a phone number to get feedback from Apple at all?

Ah...a pre-review...got it.

No. There are no pre-reviews, no one here can promise what review will/won't accept/reject, all you can hope for here are the anecdotal opinions of other devs. In the end, just like the rest of us, you'd need to take your chances with the review gauntlet.

>...app reviewer might not understand what a musician does, a studio, composer, or producer.

They're all makers, right? A musician makes music, a studio makes sounds, a composer makes melodies, and a producer makes decisions.

However, this isn't about 'what' - it's about 'how'. How the app delivers services -and- content, and how all involved intend to make monies off of them. That's all review needs to understand. Also, how -you- feel about Apple taking 30% before all the other players get their cut...

In the end, you might want to split things up, and use an app simply as one component of your business model, not the end-all. You can always build out, once you gain more experience with Apple's ecosystem, etc.

Good luck.

Posted by

KMT

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Answer 4

Here's another perspective:

> AFAIK Apple charges 30% for any digital good.

The guidelines are here: https://developer.apple.com/app-store/review/guidelines/#goods-and-services

You seem to be saying 'AFAIK Apple requires the use of IAP for any digital good'. They do not. They require the use of IAP for any item used in an app (3.1.1) - with certain exceptions ( 3.1.3a, 3.1.3b and 3.1.5a ). If your digital good is not used in an app then there is no requirement of using IAP.

On the other hand, if your digital good is used in an app then IAP may be appropriate - but for what? The service of actually creating the digital good is 'consumed' outside the app. But then if you bring that into the app what fraction of the total charge is assignable to the creation (no IAP) and what fraction is assignable to the app-based distribution (IAP). That's a tough call that would be made simpler if you divided the product into two streams - music creation and music distribution. It might be $100 to create a song and $3 to mail a CD or $1 to distribute through the app. Only the $1 would be IAP. If 50 people then bought the same song, 30 by CD and 20 by app then it's one charge of $100, 30 of $3 and 20 of $1 - only those 20 of $1 via IAP.

Posted by

PBK

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Answer 5

That's a great point of view @PBK; Also it opens up a few possibilities, very happy to have opened this thread.
"what fraction of the total charge is assignable to the creation (no IAP) and what fraction is assignable to the app-based distribution (IAP)"
Would be great to open up the option to charge the user a bit to help pay the servers, as the usage is completely free.
I did not know the payment can be distributed, that's a concept that exists in Stripe although.
A small charge even with the 30% for Apple would be a great help! Server side costs are high.
What I'll do is to update this post in a few months upon app review and leave a written testimony, as this might be useful

for other users.

Posted by

punkbit

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Music service payments, are subject to Apple transaction fees?

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