Apple Demands 30% Commission on Donations to Insight Timer’s Teachers
Insight Timer, the popular meditation app, has found itself in a dispute with tech giant Apple over a new demand for a 30% commission on donations made to the app’s teachers. Christopher Plowman, CEO of Insight Timer, has voiced his frustration with the decision, calling it unfair and highlighting the impact it will have on the app’s teachers.
Until now, Insight Timer had been allowing users to directly support teachers through donations without Apple taking a cut. This was made possible by leveraging Apple’s guidelines, which permitted direct user-to-teacher tips on the backend. However, Apple recently reclassified these donations as “digital content,” subjecting them to the standard 30% commission.
Plowman argues that this reclassification and the subsequent demand for a commission on donations are unjust, as the donations were meant to support teachers directly, with Insight Timer not taking a share. The company attempted to negotiate with Apple to preserve the donation feature but was unsuccessful.
In order to comply with Apple’s demands and avoid being removed from the App Store, Insight Timer had no choice but to give in. This situation has prompted Plowman to publicly express his frustration and call for change, shedding light on the broader issue of Apple’s commission policies and their impact on developers and content creators.
Insight Timer, with its significant user base and revenue from subscriptions, has had substantial investment and employs a large team. Challenging Apple’s policy changes is no easy feat for the company.
Furthermore, Plowman questions the inconsistency in how digital content is defined and wonders why platforms like Airbnb and Uber are not subject to the same commission fees for their service providers.
This clash between Insight Timer and Apple not only highlights the challenges faced by app developers but also raises important questions about fairness and consistency in commission policies within the tech industry.
Analyst comment
This news can be seen as negative for Insight Timer and its teachers, as Apple’s demand for a 30% commission on donations will significantly impact their earnings. As an analyst, it is likely that this decision will lead to a decrease in donations and could potentially result in some teachers leaving the platform. Additionally, this situation raises concerns about Apple’s commission policies and their impact on developers and content creators.
