No more app store tax? How to legally & safely skip IAP platform tax on Google Play & App Store
Jan 31, 2024
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Archie Stonehill, Head of Product at Stash Gigi, discusses the gaming industry's challenges, the rise of third-party app stores, and the impact of the Digital Markets Act in Europe. They explore ways for developers to bypass in-app purchase platform taxes and the benefits of multi-platform usage and loyalty programs. The podcast speculates on the future of app store legislation and innovation.
Stash.gg empowers game developers to become their own platforms, providing tools and expertise to operate direct consumer channels and create compelling user experiences outside of traditional app stores.
Stash helps game developers navigate the changing landscape of regulation and platform policies, strategizing ways to scale out-of-channel presence, optimize loyalty programs, and provide effective discount and rewards strategies.
Deep dives
The Need for Direct Consumer Relationships
The games industry has always been intermediated by platforms, which has limited the direct connection between game developers and users. This lack of direct consumer relationships hampers innovation and restricts the producers' understanding of their customers. While some attempts have been made by developers to operate direct consumer channels, they have faced challenges. The solution offered by Stash is to empower game developers to become their own platforms, providing them not only with the necessary tools to operate direct consumer channels but also with expertise and guidance to create compelling user experiences outside of traditional app stores.
Unlocking Opportunities Through Disintermediation
Stash aims to leverage the success of disintermediation in other industries to help game developers create their own direct consumer platforms. By learning from e-commerce in fashion or direct-to-consumer services in other sectors, game developers can enhance their engagement with players and gain a more significant share of their revenue. Stash offers functional requirements like identity systems and payments, as well as expertise and best practices for operating these platforms. By offering a better experience rather than just convenience, game developers can build engaging direct consumer channels that rival traditional app stores.
Navigating Regulation and Platform Policies
The changing landscape of regulation and platform policies presents challenges and uncertainties for game developers. Different regions have implemented various legislation, and the response from platforms like Apple and Google varies. While some platforms have opened up to alternative distribution channels and external payments providers, there are still limitations and fees that developers need to consider. Stash helps developers strategize and navigate these complexities, finding ways to scale out-of-channel presence, optimize loyalty programs, and provide effective discount and rewards strategies. Stash aims to empower developers to operate their own direct consumer channels while ensuring compliance within the evolving regulatory environment.
The Future of Direct Consumer Platforms
Looking ahead, the future of direct consumer platforms is expected to become more open and unified. Regulations will continue to evolve, with more countries implementing legislation to challenge the dominance of platforms. Technological advancements, such as game streaming and HTML5 game distribution, will also contribute to undermining the control of device and operating system providers. Developers will innovate in productizing the possibilities offered by these new market trends, exploring alternative app experiences, cross-platform integration, and unified player experiences. The most successful companies will think creatively and leverage the opportunities arising from the changing policy landscape and technological advancements.
If you're on the App Store or Google Play, you're paying the platform tax: 30% on all your IAP revenue. But can you legally AND SAFELY escape that?
Maybe yes.
In this episode of Growth Masterminds, John Koetsier interviews Archie Stonehill, Head of Product at Stash Gigi, to discuss the digital games industry and the evolution of direct-to-consumer platforms. They discuss the rise of third-party app stores, Apple and Google's 'app store tax', the Digital Markets Act in Europe, and how developers can shift towards alternative distribution channels.
Stonehill explains the motivation behind Stash.gg, a platform that supports gaming developers in becoming their own platforms and processing their own payments, and shares insights on how developers can engage with their users directly to optimize profitability and improve overall gaming experience.
00:00 Introduction to the Gaming Industry's Challenges
00:43 The Role of Third-Party App Stores
01:29 The Impact of the Digital Markets Act
02:23 The Three Vectors of Pro-Competitive Pushes
04:23 The Importance of Direct Relationships with Players
05:11 The Evolution of the Games Industry
12:36 The Role of Stash in the Gaming Industry
32:26 The Future of the Gaming Industry
36:36 Conclusion
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