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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 analogou
by 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 agoIf 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 agoI'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?