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Some relevant arguments- (1) Telecom provider as a case in point. They provide a fat internet pipe to consumer. But they do not get to bill the application pro
by bg24 6y ago
Some relevant arguments-
(1) Telecom provider as a case in point. They provide a fat internet pipe to consumer. But they do not get to bill the application providers (OTT- over-the-top) on a recurring basis.
(2) App marketplace is an interesting and crazy thing. If I subscribed to Netflix through app marketplace, the marketplace does NOT provide me (consumer) any value at all. But if Netflix has to pay 30% to Apple/Google of all the $$ that I pay to Netflix, something is broken in the system from my (consumer) viewpoint.
- ralfd 6y ago> the marketplace does NOT provide me (consumer) any value at all. But it provides Netflix value in that they have more customers. If you (physically) shop in a store you don't even think about the retail margin.
- nicoburns 6y agoBut physical stores are a competitve market. There are typically tens of stores selling the same product in a city, and hundreds online. Which is why stores generally have much smaller margins than 30%. The app stores are a duopoly, and that's giving them too much power.