Re:Search Ads
by georgeecollins on Thursday September 29, 2016 @01:35AM
(#12603466)
2008? I started making retail software in 1995 and believe me in those days stores often only took 10 - 20% of the retail price for CD-ROMs because they drove buyers into the store.
My point was that "distributors" or retailers never took 50% as the original post suggested.
If you believe that the reason desktop software has a higher anchor price point than mobile is the multiple layers, please explain why the price point on the Steam store is so much higher than the app store.
But did retail press your disks and prepare your packaging? Did they provide analytics?
Your Steam analogy is flawed due to selection bias - Steam is about games, and games are more similar to movies than apps. People want entertaining content (and a good amount) for that initial price.
Does Steam allow for freemium? What about ad-driven games?
Maybe not anymore but the app store was launched in 2008. If you look at the percentage a writer or a band makes from a physical book resp. studio album, 50% actually looks very optimistic. Don't forget, there were multiple layers involved, including shipping, wholesalers, retailers, etc. and everybody wanted a cut. There's a reason desktop software to this day has a much higher price anchor than mobile!