I think people have unreasonable expectations about the economics of application development. There are 80 million Macs out there. If every Mac is owned by a different person (they're not) and one out of every 1000 people needed Redacted (they probably don't), and every person who needed it had access to the MAS knew the application was there (both of which are probably untrue), then the developers total revenue would be 80e3*5*0.7=$280,000.
You would expect an unknown application's sales to grow slowly over time as people discover it, peak and fall off. You would expect a well established applications sales to spike on an update and taper to a steady state level of new customers. You wouldn't expect that a single release of a single use application will feed a developer indefinitely. This tells us next to nothing about the revenue of major applications, except that if they were ranked well below #8 on May 5th, they probably sold less than 100 copies on that day at whatever their selling price was.
I do think this is support for the argument that developers need to release paid updates periodically-- you can't sustain continued development at #30. You need to motivate repeat sales.
If Omnigraffle sold 100 units in a day, as Redacted did, they would pull in about $7000 in revenue that day because it's a $100 app, not a $5 app. The Omnigroup also has many, rather expensive, applications available to support their company, so they aren't relying on one day's sales for one $5 application-- they keep working day after day to create and sell more complex products.
The question you need to ask is how many units would Omnigraffle sell through their own site if the MAS didn't exist?
We do know that the Omnigroup has access to multiple distribution channels, including their own well established website, and they continue to sell a version of their products through the App Store-- so there is value in it for high dollar applications.
I think you might be stretching what little information there is in this article to argue for a pet cause. There are challenges to selling through MAS, no doubt. Cheetah3D recently stopped distributing through the channel because sandboxing wasn't just an ideological barrier for the developer, but technically prevented him from being able to use standard 3D file formats. That's a shame-- I'd rather pay full freight to buy it through MAS than get a discounted upgrade through another channel. I think the lack of discounted upgrades is probably going to be a long term challenge as well.
But then the point is that the MAS isn't the only distribution channel for Mac applications the way it is for iOS applications. Many developers sell through MAS and other channels in parallel (Omnigroup being one example). Some go through hurdles to provide two different versions, and work arounds for the limitations. Some choose not to distribute through MAS at all.
MAS does offer value to customers and developers though. I much prefer to buy through MAS when I can because I trust the billing system, know the license terms, know the app has been at least casually reviewed and must meet certain development guidelines for security, and can update through a common interface. Those four things are very important to me. How many copies of Redacted do you think would have sold through their site without the attention the MAS and this story generated for them?
Even with this story: Redacted hit #2 yesterday, and is currently at #3. Would they have sold as many units if people had to go to a private site and enter all their payment information to make a $5 purchase? I'd guess not-- the sales are amplified by the simplicity of MAS.
You would expect an unknown application's sales to grow slowly over time as people discover it, peak and fall off. You would expect a well established applications sales to spike on an update and taper to a steady state level of new customers. You wouldn't expect that a single release of a single use application will feed a developer indefinitely. This tells us next to nothing about the revenue of major applications, except that if they were ranked well below #8 on May 5th, they probably sold less than 100 copies on that day at whatever their selling price was.
I do think this is support for the argument that developers need to release paid updates periodically-- you can't sustain continued development at #30. You need to motivate repeat sales.
I think you're over-extrapolating from the available data... We know how many units one application sold at one spot on the rankings in one given day. We don't know the algorithm Apple uses for it's rankings other than that it is unit based rather than revenue based. We don't know what rank Omnigraffle, for example, peaked at, or how many units it sold at that level, or how many units it sells day to day.This sounds raisonnable for a one man team. But the developer is not really important. What is important is what it means for the future of Mac App development...
Now, imagine, instead of a single developer, this is a real company, doing high end softwares. A company like Omnigraffle for instance. They spend a year working on an application, involving developers, graphic designers, UX experts... And in the end, they rank #8 in the Mac App Store and their work earns them $100 a day - barely enough to pay the accountant of the company...
What this proves is that the Mac App Store, and ultimately Map apps development, is a one dollar-shop business, because the only viable applications are cheap useless ones. Just like in any one-dollar shop. Complex useful applications just cost too much and earn too little...
If Omnigraffle sold 100 units in a day, as Redacted did, they would pull in about $7000 in revenue that day because it's a $100 app, not a $5 app. The Omnigroup also has many, rather expensive, applications available to support their company, so they aren't relying on one day's sales for one $5 application-- they keep working day after day to create and sell more complex products.
The question you need to ask is how many units would Omnigraffle sell through their own site if the MAS didn't exist?
We do know that the Omnigroup has access to multiple distribution channels, including their own well established website, and they continue to sell a version of their products through the App Store-- so there is value in it for high dollar applications.
It's a forgotten wasteland, but if Sublime Text distributed through it you would instantly pay a developer whose product you could pay for through other means (I have) but have been using for free.I'd say you're missing the point. The point isn't about this poor developer and how hard he's having it; the point is how barren and forgotten the Mac AppStore is.
It doesn't have most of the key Apps most Mac users use every day - things like Skype, Office, etc. Some of the Apps which I used to own via the MAS have actually migrated away from it because of sandboxing restrictions which even close work with Apple couldn't solve (e.g. Coda).
I use Sublime Text quite a lot. If it was on the MAS, I would pay for it and the developer would earn a living from his hard work. As it is, it's too awkward for me to donate and I'm more comfortable being a customer than a donor. That developer hasn't seen any money from me, which is a shame because I pay for plenty of Apps which I value much less.
I don't know why he hasn't uploaded it, why Microsoft hasn't uploaded Skype, etc, but that's a big reason why the AppStore is so barren: it's irrelevant. New users shouldn't go to the MAS and expect to find the Apps to get them started.
It's a forgotten wasteland. It's missing many of the features from the other iTunes stores: you can't even gift Apps, for example. I tried to gift a copy of The Sims to my sister and there's just no way.
Yeah, the Mac AppStore is a barren place where nobody finds what they want and utility Apps like this one can enter the top charts. It's Apple's fault - they haven't kept the store up-to-date, and they haven't done enough to ensure that new users can quickly get themselves setup with the most commonly used Mac applications straight from one place.
I think you might be stretching what little information there is in this article to argue for a pet cause. There are challenges to selling through MAS, no doubt. Cheetah3D recently stopped distributing through the channel because sandboxing wasn't just an ideological barrier for the developer, but technically prevented him from being able to use standard 3D file formats. That's a shame-- I'd rather pay full freight to buy it through MAS than get a discounted upgrade through another channel. I think the lack of discounted upgrades is probably going to be a long term challenge as well.
But then the point is that the MAS isn't the only distribution channel for Mac applications the way it is for iOS applications. Many developers sell through MAS and other channels in parallel (Omnigroup being one example). Some go through hurdles to provide two different versions, and work arounds for the limitations. Some choose not to distribute through MAS at all.
MAS does offer value to customers and developers though. I much prefer to buy through MAS when I can because I trust the billing system, know the license terms, know the app has been at least casually reviewed and must meet certain development guidelines for security, and can update through a common interface. Those four things are very important to me. How many copies of Redacted do you think would have sold through their site without the attention the MAS and this story generated for them?
Even with this story: Redacted hit #2 yesterday, and is currently at #3. Would they have sold as many units if people had to go to a private site and enter all their payment information to make a $5 purchase? I'd guess not-- the sales are amplified by the simplicity of MAS.
Last edited: