2 ms·

I don't love the closed nature of the Apple App Store when it comes to content. Don't agree with the platform taking a huge cut of every transaction though

I don't love the closed nature of the Apple App Store when it comes to content. Don't agree with the platform taking a huge cut of every transaction though Is it really a "huge" cut? Putting aside the ethics of Apple's content stranglehold for the moment, the economic side of things seems like a very nice deal -- 30% is not bad compared to various distribution deals (for physical and virtual goods) of which I have some slight familiarity. Are there distribution platforms that allow you to get your app/product/etc to that many people without taking a cut? I'm kind of fed up with Apple for a variety of reasons, but this doesn't seem like one of the problems to me.

muststopmyths 6y ago
I meant "every transaction", as in in-app purchases beyond the initial 30% cut on the purchase price. So distribution deals for physical goods are not analogous, right ? Like Best Buy doesn't get a cut if I pay netflix to watch it on the TV I bought from them.
- JiNCMG 6y ago
  If BestBuy made a deal to get their customers to sign up for Netflix then yes. You are BestBuy's customer and Netflix is getting access to you. If you sign up for a Target card, they get an initial cut and then monthly percentage based on your usage. A bank is managing that card not Target.
- JohnBooty 6y ago
  I'd agree that there are no direct analogies, for sure. Especially physical goods. Like Best Buy doesn't get a cut if I pay netflix to watch it on the TV I bought from them. Okay, but if you were launching a rival to Netflix and had many millions of dollars to play with, wouldn't you gladly consider a deal like that with Best Buy? Imagine Best Buy's extremely large presence in the world of television-selling. You could get your streaming service into a lot of homes if they promoted the heck out of TVs featuring your service in exchange for a cut, right? Depending on the % cut they wanted, that could be a great deal for you. Suppose the % cut was 0.0000001%. Certainly you would take that offer. And probably 0.0001%. Maybe even up to 10%. Maybe even 50%, depending on your business model? Anyway, I have lots of problems with the App Store, but man... that 30% sounds pretty fine. Access to that many users, many of whom have payment information stored a mere tap away?

muststopmyths 6y ago

I meant "every transaction", as in in-app purchases beyond the initial 30% cut on the purchase price. So distribution deals for physical goods are not analogous, right ? Like Best Buy doesn't get a cut if I pay netflix to watch it on the TV I bought from them.

JiNCMG 6y ago
If BestBuy made a deal to get their customers to sign up for Netflix then yes. You are BestBuy's customer and Netflix is getting access to you. If you sign up for a Target card, they get an initial cut and then monthly percentage based on your usage. A bank is managing that card not Target.
JohnBooty 6y ago
I'd agree that there are no direct analogies, for sure. Especially physical goods. Like Best Buy doesn't get a cut if I pay netflix to watch it on the TV I bought from them. Okay, but if you were launching a rival to Netflix and had many millions of dollars to play with, wouldn't you gladly consider a deal like that with Best Buy? Imagine Best Buy's extremely large presence in the world of television-selling. You could get your streaming service into a lot of homes if they promoted the heck out of TVs featuring your service in exchange for a cut, right? Depending on the % cut they wanted, that could be a great deal for you. Suppose the % cut was 0.0000001%. Certainly you would take that offer. And probably 0.0001%. Maybe even up to 10%. Maybe even 50%, depending on your business model? Anyway, I have lots of problems with the App Store, but man... that 30% sounds pretty fine. Access to that many users, many of whom have payment information stored a mere tap away?