Recently Apple announced it is demanding a 30% commission on NFT sales through apps on its marketplace. Here's what you need to know:
The Details
- the 30% commission applies to NFTs sold through apps in Apple's marketplace
- there's only a handful of NFT apps within the marketplace: OpenSea, Rarible, Magic Eden, and crypto trading apps like Binance, Crypto.com, and Coinbase Wallet
- many NFT app developers and creators disagree with the decision
The Strategy
- lump NFT sales in the same group as in-app purchases
- market competitor, Android's app store Google Play, is imposing the same 30% commission
The Review
I'd review this strategy as not a strategy at all - a 1/5 on web2 → web3 transitions. It represents a real miss for Apple with the existing NFT community.
Any consideration of web3 values like ownership or value exchange would have made Apple stand apart from its competitors. Particularly given that standard NFT marketplace commission rates range between 2.5% (Opensea) and 15% (SupeRare + Nifty Gateway).
Instead, folks are arguing Apple is:
- destroying all NFT app businesses that it cannot tax
- "crushing" another nascent technology that could rival its "overpriced" in-app payment service
We can argue any short-term negativity will have little impact on Apple's entry into web3. We can also argue this is another powerful signal toward mass adoption - which is great.
The lesson and advice for all corporations, though, but especially SMBs, is that a little goes a long way.
Spend time in the community (Twitter is your best place to start). Learn about the values of the creators, communities, and other leaders. Build your strategy around those values.
web3 is not only about technology, art, or communities. It's a fundamental shift in the minds of consumers and their expectations for companies that want their money.
Disclaimer: I meant this article to act as a review of Apple’s recent web3 business decision. It is not a reflection or statement of my views regarding other areas of their business.
