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U.S. and European Regulators 'Looking At' Apple's App Store Subscriptions Program
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I believe 30% for access to market is typical. How much do you think games companies pay to get into shops?
How much to book publishers pay to get into Borders?
C.
That's what I enjoy about this sort of discussion. We quickly get to see who is right.
C.
My guess is that Apple will back down before the end of this month because the LAST thing Apple wants is an antitrust investigation by the FTC/DoJ Antitrust Division in the USA or European Commission antitrust regulators--Apple does not want such negative publicity given its highly curated public image.
There's no case to answer.
If what Apple is doing is wrong, then there'd be a case against Microsoft, Amazon, Sony and everyone else who creates a platform and then hopes to monetize it.
C.
Some parts are definitely grey areas, like the insistence of charging exactly the same price in app and elsewhere.
All the publishers understand ..lol. All the ones that have publicly complained .. some that have already annouced to leave the plattform? Please stay with facts. I respect your opionion albeit I do obviously not share it. But please don't make up baseless claims based on your perceiption of the situation.
All these iPad users have been available to those content providers already and they didn't move on the plattform til now .. why would they come now that it became more expensive for them? And some that had made the step will have to increase their prices quite a bit.
There was a recent study that Apples app store takes 82% of all the mobile app market revenue .. I think that could be considered a monopoly. However I do also think that Apple will quickly change those rules again, just like they did with the advertisers back last years when they tried to force iAds in the market. I don't think they will risk a lawsuit.
T.
So a company selling something through the AppStore for $10 would have to make $6.10 in pure profit on it not to have to pay Apple more than their own profit. And if their profit would be less than $3, they would actually lose money.
Here's what's going to happen.
Pure Apple fanatics will tell everyone how good iBooks, iMovies, iTunes, etc is. Because that's the only choice they will have. And lots of fart apps.
People will move on to other platforms where there will be a choice.
It's going to be the Macintosh all over again, and unless the iPhone and iPad will have something that they are better at, like photo editing on the Mac, it will be less than the Mac since there will be no superior products on the iPhone or the iPad.
Here's what's going to happen.
Pure Apple fanatics will tell everyone how good iBooks, iMovies, iTunes, etc is. Because that's the only choice they will have. And lots of fart apps.
People will move on to other platforms where there will be a choice.
It's going to be the Macintosh all over again, and unless the iPhone and iPad will have something that they are better at, like photo editing on the Mac, it will be less than the Mac since there will be no superior products on the iPhone or the iPad.
If you have access to 45 million iPad customers and sell two MacGuffins to everyone of them and lose 15 cents on every sale, you're still not going to earn one cent, but you'll lose $13.5 million.
There was a reluctance for some content owners (Book publishers) to go to the platform. They hedged their bets by selling through Amazon, (even though Amazon's terms are actually worse).
Two things have changed since then.
1) The iPad platform is a massive hit. And I suspect more books are being sold on the iPad than the Kindle reader. The size is likely to increase threefold in 2011.
2) The benefit of selling through Amazon exclusively has suddenly evaporated.
So yes, I think book publishers can't afford to not come to the iPad directly.
The App store model shows that with a big active audience, and aggressive competitive content providers, prices fall.
C.
Yet some people think this is perfectly acceptable and in some way good for the consumer.
If that's your business model, then you are screwed.
It's not Apple's job to support anyone else's business model.
But if you OWN the content, and get to net 70% of all those millions. Why would you ignore that market.
C.
You're really, really in luv with Apple, aren't you?
And love makes blind, we all know that.
You're really, really in luv with Apple, aren't you?
Nice. But can you answer the actual question?
C.
That's true. Fart Apps.
If I make a magazine and sell subscriptions on the iPad, then what I sell it for won't be pure profit, I would still have to pay wages etc. I remember how every magazine thought the iPad would be the golden goose. How utterly wrong they were.
But then they should just leave the magazine business and make fart apps.
No company making a profit less than 30% has any reason to be on the iPhone/iPad. Any business making between 61% and 30% should consider if giving away more than half their profit to Apple is something they want to do, or if they should remove their app and wait until Apple folds.
You are the one claiming it will be benefical for the customer in the end.
If you own books (like the rights to books) chances are you have no knowledge about computers, development or digital distribution in your company. Thats why you make a deal with somebody like Amazon takes care of all that for you. Now Amazon is suddenly taken out by those new rules. Do you honestly belief these publishing houses are going to spend millions in a risky adventure that they cannot even comprehend for those couple of readers (keep in mind that these Xmillion iPad are spread all over the world and quite possibly outside your target market).
There is a ton of eBooks sold because of Amazons Kindle plattform and there is a ton of iPad sold because it can be used to read those. Once this breaks away, the ebook market of the iPad will take a huge hit, not sure it will even recover from it.
It cost millions to take advantage of that market (developing and sustaining an infrastructure) plus the Apple cut .. that is very far from a done deal, infact it is a very risky business (especially considering, that you now know that Apple will change the rules on the fly and you cannot be certain of anything or plan anything ahead for more than a couple weeks).
T.
Also, a business model that would make a 29% profit is a failure?
"Well, I had this business that made me a 29% profit, but it really was too low, so I canned it to focus on fart apps instead. Sure I don't sell as many, and I don't earn as much, but my profit is 100%!"
"Well, I had this business that made me a 29% profit, but it really was too low, so I canned it to focus on fart apps instead. Sure I don't sell as many, and I don't earn as much, but my profit is 100%!"
Apple's own business model works on a gross profit margin of around 38% and less than 25% net profit.
Their own business model wouldn't cope with a sudden 30% overhead and they are one of the most profitable companies in the world.
Yes, if you sell thorugh Amazon you get a 70% and acccess to iOS, Android, RIM, Symbian, OS X, Windows, Linux. If you sell thorugh Apple you get a 70% and you can only use iOS.
Great benefit
A) it does not have to exclusive. You can sell to both.
B) What do Amazon charge?
C) What proportion of Amazon sales is through iOS?
C.
A) Why,m there is no benefit
B) 30%
C) Irrelevant, the publisher gets the same
D) How many people has purchased an iPad/iPhone because there are applciations like Kindle, Netflix, Pandora or Hulu?
Who is getting that 70%? Someone is winning.
Outrageous! They should do it for free!
Obviously it is not irrelevant. Amazon get to do what they want on their hardware. Which they are entitled to. They built it. But would Amazon allow a rival bookstore on the Kindle? For Free?
C.
That's because access to Market costs. It costs them to run those shops. It costs them more to be in BestBuy.
No one gives it away.
In the real world publishers, developers and manufacturers are lucky to get 50%.
C.
Why?
There is no rival store on the Apple store, there is an App which read books.
My God, you're so blind and in Love with Apple that it's impossible to reasonate with you.
Good bye, and when Apple tell the clients to put half a liter of blood for using their gear I think you will say, where I have to send it?