Many YouTube Premium subscribers are unaware that they are paying up to 30 percent more simply because they subscribed through Apple's App Store. An individual plan costs $16 per month when purchased directly on YouTube's website, but the price jumps to $21 when billed through Apple's platform. This surcharge is widely known as the "Apple tax" and stems from the commission Apple collects on every transaction.
How the Apple tax works and affects subscriptions
Apple charges a 15 to 30 percent commission on any subscription processed through its payment system. To avoid absorbing that cost, many developers and service providers, including Google, pass it on to the user. As a result, subscribers who use the App Store pay a higher price than those who choose direct billing. This practice is not limited to YouTube Premium; numerous apps and services employ the same strategy.
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Why some users still prefer the App Store
Despite the extra cost, some users opt for Apple's billing for its convenience in managing subscriptions. The Apple ecosystem allows users to view and cancel all subscriptions in a few taps from Settings, avoiding the sometimes cumbersome cancellation processes of external providers, which often hide the cancel button or require multiple steps. In this sense, paying a bit more can be seen as a price for ease and transparency.
How to save money by switching away from App Store billing
If you are currently paying for YouTube Premium through the App Store, you can easily switch to direct billing. Simply cancel the existing subscription from your iPhone Settings, then subscribe again via YouTube's website. Google does not obstruct cancellation; the process is straightforward without aggressive retention tactics. By doing so, you will save $5 per month, equivalent to $60 per year.
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For further reading, check our comparison of major AI chatbots and their subscription plans, where similar pricing dynamics are evident. Additionally, for a general overview of the so-called "Apple tax," you can refer to the Wikipedia page.
