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Jason Snell on Apple’s Drive for Services Revenue

Jason Snell, writing at Six Colors:

Consider the soul-sucking term ARPU. It stands for Average Revenue Per User (or, alternately, Unit), and it’s a useful-yet-noxious lens through which businesses can view their customers. Of course, businesses should be aware about how much revenue their customers are generating — the issue is more that focusing on ARPU is often a sign that a business is on a path that will attempt to wring every last penny out of its customers. It’s a sign of nickel-and-diming, sliding in hidden fees, and all sorts of other questionable practices that make sense if you’re looking at a balance sheet — but are so infuriating if you’re a customer.

Apple doesn’t do hidden fees. And its media subscription services are all good deals. Music and News have fair prices, and both of those require Apple to pay the content providers. $5/month for TV+ —  including family sharing — is a lower price than most people expected, and the free-first-year-with-hardware-purchase makes it even better. And Apple Arcade is an undeniable bargain at $5/month — again, including family sharing.

To me, every one of these feels exactly in line with putting the customer experience first. Compare and contrast with the high prices and bullshit tack-on fees from your cable and cell phone providers.

But then there’s iCloud storage — Apple’s original subscription service. The prices for iCloud’s storage tiers compare OK against competitors like Google, but I’d still like to see a significantly higher free base tier (Google offers 15 GB vs. Apple’s 5 GB). That miserly 5 GB free tier is emitting an evermore pungent nickel-and-diming aroma.

Friday, 1 November 2019