Amazon pulls an Apple by cutting its cut in the App Store for some small developers
Amazon has decided that it would really like to attract more developers to its Android and Fire OS app store, so it is following in Apple’s (and Google’s) footsteps in announcing a new “Amazon Appstore Small Business Accelerator Program” which takes less money out of developers’ pockets (Going through AFTVAews).
But where Apple and Google cut their cut in a developer’s $ 1 million in revenue from 30% to 15%, Amazon’s formula has a slight adjustment: it will take over 20% of revenue, but give developers. Additional 10% in “AWS Promotional Credits”. The idea is that if your app uses Amazon’s popular AWS cloud services anyway, that will equate to you keeping 90% of the money. And if you use a of the competitor cloud services, maybe Amazon will inspire you to become an AWS customer.
Like Apple’s program, however, it’s a program – something you have to apply for can be disqualified, and you are automatically kicked out and have to reapply the next year if your income exceeds $ 1 million. In contrast, Google is simply giving developers an extra 15% of their first million dollars.
Plus, revenue isn’t everything: as Fanhouse argued when it criticized Apple last week, an app designed to profit creators, not its developer, could generate well over $ 1 million in revenue and not be able to afford 30% of the money changing hands there. Fanhouse says it pays creators 90% of their income and accuses Apple of requiring 30%.
Apple is currently pursuing a massive lawsuit against Epic Games over whether its 30% cut is fair; part of Apple’s argument is that 30 percent has long been the norm. But critics say companies like Apple charge a lot more for their services than a payment processor should. Initiatives like these from Apple, Google, Amazon, and Microsoft suggest that there is significant pressure in the industry to reconsider the 30% cut, if only to steer the conversation away from alternatives that may have an impact. more drastic impact on profits.