Can someone help a poor liberal arts major? I see "costs $1.3 billion to run" and I think "Apple loses $1.3b a year on the iTunes store." But reading the article and the constant Apple talk about breaking even makes me think that what they're trying to get at is "the infrastructure for the store and payments to artists and app creators costs $1.3b a year, but Apple's 30 percent cut of everything produces about $1.3b a year in revenue, so it all works out," which is a very different proposition, yes?
iTunes now costs $1.3 billion/yr to run
21–30 of 63 posts
Re: iTunes now costs $1.3 billion/yr to run
#22So, is 30% too much of a cut when the platform offers: - Credit card processing - The largest marketplace with the most paying customers - Download hosting - Promotion - Highly available document and key/value store infrastructure - Keeping junk and malware out of the store, which maintains user trust. I'd argue that, like most emotionally influence business decisions, Apple sticking with the same percentage is a goo…
I don't think the 30% has ever been an issue. The exclusivity is. Doubly so as Apple keeps changing the rules which if you're caught on the wrong side of can destroy your business.
"I don't think the 30% has ever been an issue."
Seriously? The 30% on apps, the 30% on in-app purchases, 30% on subscriptions, etc., each caused an uproar when they were announced.
Re: iTunes now costs $1.3 billion/yr to run
#23So, is 30% too much of a cut when the platform offers: - Credit card processing - The largest marketplace with the most paying customers - Download hosting - Promotion - Highly available document and key/value store infrastructure - Keeping junk and malware out of the store, which maintains user trust. I'd argue that, like most emotionally influence business decisions, Apple sticking with the same percentage is a goo…
I don't think the 30% has ever been an issue. The exclusivity is. Doubly so as Apple keeps changing the rules which if you're caught on the wrong side of can destroy your business.
What do you mean by the exclusivity? How do you mean it can destroy your business if caught on the wrong side?
Re: iTunes now costs $1.3 billion/yr to run
#24Can someone help a poor liberal arts major? I see "costs $1.3 billion to run" and I think "Apple loses $1.3b a year on the iTunes store." But reading the article and the constant Apple talk about breaking even makes me think that what they're trying to get at is "the infrastructure for the store and payments to artists and app creators costs $1.3b a year, but Apple's 30 percent cut of everything produces about $1.3b…
Your first thought is wrong, because "costs" is very different from "takes a loss of".
Re: iTunes now costs $1.3 billion/yr to run
#25Too bad Apple doesn't break it down a bit: iTunes music: must make money. There is no review process, the labels handle everything, and the file sizes are tiny. iBooks: Probably loses money, based on a gut feeling for how many people are actually buying books on iBooks vs Amazon. Mac App Store: Probably losing money at this point. iOS App Store: Could be break even I suppose. Obviously lose money on free apps, plus t…
>iOS App Store: Could be break even I suppose. Obviously lose money on free apps, plus the review process can't be cheap.
Free apps still need a $99/yr developer fee, though one could submit a whole lot of free apps.
Re: iTunes now costs $1.3 billion/yr to run
#26Earlier quoted context omitted.
I don't think the 30% has ever been an issue. The exclusivity is. Doubly so as Apple keeps changing the rules which if you're caught on the wrong side of can destroy your business.
"I don't think the 30% has ever been an issue." Seriously? The 30% on apps, the 30% on in-app purchases, 30% on subscriptions, etc., each caused an uproar when they were announced.
Not because of the percentage, but because of the exclusivity. 30% on in-app purchases/subscriptions was only a big deal because Apple required that you use it and match the lowest price anywhere else. (They since backed down on this, but they can change their minds again.)
Re: iTunes now costs $1.3 billion/yr to run
#27Earlier quoted context omitted.
I don't think the 30% has ever been an issue. The exclusivity is. Doubly so as Apple keeps changing the rules which if you're caught on the wrong side of can destroy your business.
What do you mean by the exclusivity? How do you mean it can destroy your business if caught on the wrong side?
You can't distribute an iOS app outside of the App Store (outside of the enterprise). So Apple's 30% fee is essentially a tax on iOS apps--there's not a way around it.
Apple can destroy your business by changing a rule that makes your app ineligible for the App Store (or at least unprofitable, most recently seen in the whole in-app fiasco). There's not a way to distribute outside of Apple, so if Apple doesn't want to distribute your app then you have no business.
Re: iTunes now costs $1.3 billion/yr to run
#28Too bad Apple doesn't break it down a bit: iTunes music: must make money. There is no review process, the labels handle everything, and the file sizes are tiny. iBooks: Probably loses money, based on a gut feeling for how many people are actually buying books on iBooks vs Amazon. Mac App Store: Probably losing money at this point. iOS App Store: Could be break even I suppose. Obviously lose money on free apps, plus t…
>iOS App Store: Could be break even I suppose. Obviously lose money on free apps, plus the review process can't be cheap. Free apps still need a $99/yr developer fee, though one could submit a whole lot of free apps.
I just looked and Apple hires iOS reviewers as full-time US employees with a CS degree. No salary listed, but I would guess that's around $100/hr cost to Apple. So one hour spent on reviewing a free app and now Apple is losing money.
Re: iTunes now costs $1.3 billion/yr to run
#29Earlier quoted context omitted.
Does anyone believe that the promotion that Apple offers on average is worth two cents? And what good is a marketplace with some of the worst discovery ever? I mean, there are now hundreds of thousands of apps. Finding high quality apps on the app store is like finding a needle in a Utah sized haystack. I much rather do my own marketing, have a user download the app off my website or heck, Amazon (which actually has…
> Does anyone believe that the promotion that Apple offers on average is worth two cents? I do. I made a couple small and quick apps. They have made several hundred dollars. I attribute that almost entirely to Apple's promotion of them, mostly by having them show up in iTunes search results which Apple promotes. Also having them show up as recent releases. My promotion consisted of linking them on my websites. If tha…
Counting search results as promotion is a stretch.
Re: iTunes now costs $1.3 billion/yr to run
#30Can someone help a poor liberal arts major? I see "costs $1.3 billion to run" and I think "Apple loses $1.3b a year on the iTunes store." But reading the article and the constant Apple talk about breaking even makes me think that what they're trying to get at is "the infrastructure for the store and payments to artists and app creators costs $1.3b a year, but Apple's 30 percent cut of everything produces about $1.3b…
Your first thought is wrong, because "costs" is very different from "takes a loss of".
Well, OK, but is my second thought right?