4 ms·
The point is that creators already have to deal with worse than 30% scalping when dealing with other distributors of their content. For example, Activision/Bliz
by grhino 16y ago
The point is that creators already have to deal with worse than 30% scalping when dealing with other distributors of their content. For example, Activision/Blizzard has the infrastructure to sell/distribute games from their own website, however, when they also sell those games through a big retail distributor like Walmart, they have to give Walmart a huge cut (I'm guessing more than 30%) to entice Walmart to sell that game through their stores. Now, Activision/Blizzard cannot sell the game for 10% less than the retail price from their own website (at least, not initially) because otherwise, Walmart says to Blizzard/Activision "If you don't sell the game from your website at the retail price, we won't sell your game through Walmart."
Even though it's a negotiation, it's mutually beneficial to the content producers and the distributors.
The game Apple is playing is that they want to take the same cut from content distributors as they would from content creators. It's a gutsy move by Apple because those content distributors are already taking a cut by reselling content from content creators. They wouldn't be willing to do this if they weren't also making an aggressive push to be a content distributor of all digital media.