This interesting post at IntoMobile is saying that 70/30 % revenue split is too low. The strange thing is that there is little to no competition between all mobile Application Stores on revenue share. Really strange, no? It’s very unusual that this is not discussed widely in the mobile industry. It would be normal to assume that all these application stores would profit from application sale volume and not from revenue share with developers.
Someone could argue that developers would go where the mobile platform offer more technical facilitators and better user experience but why not having some competition on revenue share and see what is going to happen?
If I am not mistaken in Japan the revenue split is 90/10.
Any experience/comments?
Alessandro
Hi Alessandro. It is worth pointing out that RIM shares 80% with developers via App World. But it is not all about the share. Volume is important as well. As you know, Paycheck = rev share X volume.
I’ve spoken with some developers about this. They prefer the 70% on the iPhone because they can more than make up the difference on volume.
Francisco.
Ciao Francisco,
good to hear from you. Yes, I was just looking at RIM.
I understand that and it makes perfect sense.
But still is it strange that there is very little competition between app stores on revenue share.
My guess as platforms levels up we will see some movements in this area.
Alessandro