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There might be a more subtle issue at work here. Sales provide one-time revenue, heavily taxed. Ads provide recurring revenue.
by Kalium 7y ago
There might be a more subtle issue at work here. Sales provide one-time revenue, heavily taxed. Ads provide recurring revenue.
- scarface74 7y agoAnd would reducing the “tax” - what normal businesses call distribution expenses - to 10% change the equation?
- Kalium 7y agoThere are doubtless cases where that extra slice of one-off revenue per customer would make all the difference in the world to the business model. At the same time, I suspect that in most cases it would not change the business decisions being made. Recurring revenue matches the financial needs of a business better in most cases.
- scarface74 7y agoWhich ones? Can you think of one category of apps that would not do recurring revenue ad sales and go to one time purchases? Honestly I can’t think of one non game app that is ad supported without the option of turning off ads with an in app purchase or subscription.
- Kalium 7y agoI am not able to point concretely to any. As I am not possessed of sufficient internal fincancial information to evaluate the question, I am also not equipped to evaluate the question. I do feel safe in suggesting that across all the apps of the world, there is a greater than 50% chance of there being at least one such application.