Facebook basically pays 99.- Dollars to Apple and makes Billions and Billions of Dollars of profit with it, while small developers have to hand out tens and hundreds of thousands of Dollars and pray to make a profit. How can that be? What are we missing?
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In the real world newspapers and magazines pay distribution companies 30% (or more) from the cover price. They DO NOT pay anything from the advertising pages they carry. I don’t see how Apple as distributor deserves percentage from advertising on the platforms of these apps.
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This is completely nonsensical. 1. you compare the value chain and the distribution cost of digital and non digital industries. 2. You imply that physical distribution of papers is independent from its main source of income: advertisement. 3. Facebook is not a newspaper.
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Also, periodicals traditionally have two streams of revenue — distribution and advertising — which are interdependent. The higher the circulation, the higher advertising costs. And yes, Facebook is not a newspaper
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We have been working for the newspaper industry for over 15 years. We are very well aware of their digital and physical value chain. The net margin for a successful software maker is 20% on average. 30% revenue share is a sure killer for most developers. And Apple knows that.
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I say this as an @iA fan/user and as one who avoids ad-driven content. This calculation is wrong. Given the market, Apple’s fee is part of your costs, not subtracted from your profit. You can argue the number is the wrong number, but not the accounting method.
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What do you mean? No one is arguing about that. It is subtracted from total revenue not profit, everyone knows that.
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“The net margin for a successful software maker is 20% on average. 30% revenue share is a sure killer for most developers.” You compared your [profit] margin with the costs of distribution, that is what I mean. It’s not a correct comparison.
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Is the Apple tax really cost of distribution? Depending on what they argue about the reason for it changes (security, quality, platform, tools). It’s more a “because we can” tax. Put otherwise: How come, in your terms, that Facebook has no cost of distribution on iOS?
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Distribution used broadly, including the services you cite. FB has a difft business model. It’s a free app that, mostly, makes $$$$ on the back of its “users”, it’s customers are it’s advertisers. I don’t use FB and I think that model is bad for society. Blame users, not Apple.
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Replying to @Mglo @emilzak
Wait, Facebook does take money directly, in App.

3:30 PM · Aug 29, 2020

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Replying to @iA @Mglo @emilzak
Some of the cited services are double booked with the annual fee (99.-). But since we want to be precise in accounting terms: there are types of businesses that take a flat revenue share, like franchises, or credit cards. What else? How are they booked? How high are they usually?
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Not an accountant here, but as an entrepreneur I am fairly certain of the basic math (Revenue-30% flat tax in today’s software industry is an economic march on hot coal), and I want to be clear and not be hung up on using wrong terminology making the argument.
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Replying to @iA @emilzak
Apple should charge for that, I agree. Presumably there are some bare knuckle negotiations behind that. FB does have power and it should be checked, on that we agree.
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Not just Facebook, the full top10 hets a pass, except Apple’s competitors: Netflix (found a backdoor) and Amazon (special deal). In plus E-commerce apps (sell “physical goods”) and apps like Uber and AirBnB (also physical). The top earners don’t pay for distribution. Why?
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