Amazon, NOT developers, to set App prices

Daithi · 01-14-2011, 05:08 PM

An interesting article at businessinsider.com regarding how App prices will be set for the Kindle. Apparently the developer can set the MSRP (Manufacturer's Suggested Retail Price), but ultimately Amazon gets to set the actual sales prices. The developer gets either 70% of the actual sales price or 20% of the MSRP -- whichever is higher.

Apparently developers aren't quite sure how they feel about this.

Personally, I'd just like to get access to Amazon's KDK (i.e. SDK).

Ravensknight · 01-15-2011, 05:06 PM

Apps for kindle? since when does the kindle use apps?

This article is about Amazon and Google Android...

JeremyR · 01-15-2011, 07:32 PM

While you are right this is about Amazon's Android store, the Kindle does have a number of "apps" or programs. Entirely games so far, but presumably the potential for more is there.

Amazon seems to do this in other areas, so it probably does also apply to Kindle apps. To a certain degree it makes sense for them, because it keeps them from being undercut by someone else.

About a year ago Sony started a program to allow iPhone/Android like games on their portable gaming system the PSP. But the ones that have been brought over tend to cost $5, compared to $1-2 on the iPhone. Which has caused a lot of people to complain to Sony about the high prices for the same game.

Kali Yuga · 01-16-2011, 09:33 AM

Quote:

Originally Posted by Ravensknight

Apps for kindle? since when does the kindle use apps?

IIRC they allowed Kindle apps about... 6 months ago?

However you are correct that this new store isn't for selling Kindle apps. Amazon is putting together a competitor to the Android Marketplace.

Who knows, if the Apple App Store takes off, Amazon could try to clone that as well....

Steven Lake · 01-16-2011, 08:36 PM

Amazon setting prices again? Yeah, sounds like they're trying to bully everyone out of the market long before they can get a foothold and muscle Amazon out of the picture. Honestly though, I really wish there was an online retailer similar to Amazon (actually, 3-4 would be even better) who could really give Amazon a run for their money. Then you'd start seeing them do what's right for the customers rather than playing school yard bully and fleecing everyone. It's why I always cheer for more competition, more variety, and less of this "one stop shop" BS. Competition does wonders for keeping companies honest and doing what they should be.

leebase · 01-16-2011, 08:58 PM

More proof the publishers were right to worry about Amazon's pricing power

Lee

kevinp · 01-16-2011, 10:43 PM

Publishers get to charge whatever they want, but developers can't? I hope the developers go somewhere else.

Ravensknight · 01-16-2011, 11:04 PM

Quote:

Originally Posted by leebase

More proof the publishers were right to worry about Amazon's pricing power

Lee

yeah! cause those holy, saintly, wonderful, etc, etc publishers are doing so well by us the consumers.

ATimson · 01-17-2011, 10:09 AM

Quote:

Originally Posted by leebase

More proof the publishers were right to worry about Amazon's pricing power

How so? They're willing to guarantee the developer will get at least $X per sale. They're simply offering the developer *more* if the price it retails for is anywhere near what the developer set.

leebase · 01-17-2011, 02:31 PM

Quote:

Originally Posted by ATimson

How so? They're willing to guarantee the developer will get at least $X per sale. They're simply offering the developer *more* if the price it retails for is anywhere near what the developer set.

No, Amazon is guaranteeing the developers 20% of the MSRP. So, if a developer takes the time to develop an app that he wishes to price at $10, he is only guaranteed $2, not the $7 he is expecting.

Then, as Amazon decides to sell all the apps for $1 to buy up market share from the other Android markets, the developer will be left with a customer base that now expects all his apps to only sell for a dollar.

Lee

ATimson · 01-17-2011, 02:41 PM

Quote:

Originally Posted by leebase

No, Amazon is guaranteeing the developers 20% of the MSRP. So, if a developer takes the time to develop an app that he wishes to price at $10, he is only guaranteed $2, not the $7 he is expecting.

Which conflicts with what I said... how? I never said they were guaranteeing 70%, just that they were guaranteeing an amount.

Quote:

Originally Posted by leebase

Then, as Amazon decides to sell all the apps for $1 to buy up market share from the other Android markets, the developer will be left with a customer base that now expects all his apps to only sell for a dollar.

And if Amazon wants to lose $1 on each copy of the app, why shouldn't they be allowed to?

The MaD HaCkER · 01-17-2011, 02:44 PM

[QUOTE=JeremyR;1338387]While you are right this is about Amazon's Android store, the Kindle does have a number of "apps" or programs. Entirely games so far, but presumably the potential for more is there.

Amazon seems to do this in other areas, so it probably does also apply to Kindle apps. To a certain degree it makes sense for them, because it keeps them from being undercut by someone else.

I have seen both sides of this argument before, By limiting the apps that can be released on your device you limit the amount of pure ripoff Cra... that gets released on your platform, On the other hands you are telling developers "Don't brother with us, we are not going to support you" So when you hear "You have to get ____ It is just so neet!" you are not able to get it. And the customer soon goes to a different platform where they can get it. I know a guy who has 4 game mechines just so he can play the games he wants, But I am not willing to go that far and I dought many are

leebase · 01-17-2011, 02:47 PM

Quote:

Originally Posted by ATimson

And if Amazon wants to lose $1 on each copy of the app, why shouldn't they be allowed to?

Perhaps a developer doesn't want the market value of all apps to be set at $1. After Amazon buys up marketshare, than Amazon can stop subsidizing the app price, and now the developer will only get $.70 for his apps.

Customers loose too as developers stop putting the kind of effort to creat more than a fart app because they can't sell them for the price that makes them worth developing.

Lee

screwballl · 01-17-2011, 03:10 PM

Quote:

Originally Posted by leebase

Perhaps a developer doesn't want the market value of all apps to be set at $1. After Amazon buys up marketshare, than Amazon can stop subsidizing the app price, and now the developer will only get $.70 for his apps.

Customers loose too as developers stop putting the kind of effort to create more than a fart app because they can't sell them for the price that makes them worth developing.

Lee

That is so wrong... there is no law or rule that says these people have to use Amazon. They have every right to use whoever or whatever system they want for the content distribution that can get them the profit they prefer.

ATimson · 01-17-2011, 03:15 PM

Quote:

Originally Posted by leebase

Perhaps a developer doesn't want the market value of all apps to be set at $1.

Then they should start selling directly to consumers, because that's the only (legal in the US) way to guarantee the retail price of their product.

01-14-2011, 05:08 PM	#1
Daithi Publishers are evil! Posts: 2,418 Karma: 36205264 Join Date: Mar 2008 Location: Rhode Island Device: Various Kindles	Amazon, NOT developers, to set App prices An interesting article at businessinsider.com regarding how App prices will be set for the Kindle. Apparently the developer can set the MSRP (Manufacturer's Suggested Retail Price), but ultimately Amazon gets to set the actual sales prices. The developer gets either 70% of the actual sales price or 20% of the MSRP -- whichever is higher. Apparently developers aren't quite sure how they feel about this. Personally, I'd just like to get access to Amazon's KDK (i.e. SDK).

01-15-2011, 05:06 PM	#2
Ravensknight Serpent Rider Posts: 614 Karma: 5200000 Join Date: Jun 2009 Device: PRS-505, Superpad Tablet, Sony T1, Sony 350, Nook STR	Apps for kindle? since when does the kindle use apps? This article is about Amazon and Google Android... __________________ My Goodreads Profile Join the Science Fiction Book Club and we both get rewarded

01-16-2011, 08:36 PM	#5
Steven Lake Sci-Fi Author Posts: 1,069 Karma: 14299371 Join Date: Sep 2009 Location: Michigan Device: PC (Calibre)	Amazon setting prices again? Yeah, sounds like they're trying to bully everyone out of the market long before they can get a foothold and muscle Amazon out of the picture. Honestly though, I really wish there was an online retailer similar to Amazon (actually, 3-4 would be even better) who could really give Amazon a run for their money. Then you'd start seeing them do what's right for the customers rather than playing school yard bully and fleecing everyone. It's why I always cheer for more competition, more variety, and less of this "one stop shop" BS. Competition does wonders for keeping companies honest and doing what they should be. __________________ - Steve Lake Author: Earthfleet Saga, Land of the Lions, and The Dreamland Articles Website: www.realmsofimagination.net

01-17-2011, 02:44 PM	#12
The MaD HaCkER Junior Member Posts: 2 Karma: 10 Join Date: Jan 2011 Device: Palm Tungsten E2	The More things change... [QUOTE=JeremyR;1338387]While you are right this is about Amazon's Android store, the Kindle does have a number of "apps" or programs. Entirely games so far, but presumably the potential for more is there. Amazon seems to do this in other areas, so it probably does also apply to Kindle apps. To a certain degree it makes sense for them, because it keeps them from being undercut by someone else. I have seen both sides of this argument before, By limiting the apps that can be released on your device you limit the amount of pure ripoff Cra... that gets released on your platform, On the other hands you are telling developers "Don't brother with us, we are not going to support you" So when you hear "You have to get ____ It is just so neet!" you are not able to get it. And the customer soon goes to a different platform where they can get it. I know a guy who has 4 game mechines just so he can play the games he wants, But I am not willing to go that far and I dought many are

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01-15-2011, 07:32 PM	#3
JeremyR Guru Posts: 950 Karma: 2385068 Join Date: Aug 2010 Location: St. Louis Device: Kindle 3 Wi-Fi	While you are right this is about Amazon's Android store, the Kindle does have a number of "apps" or programs. Entirely games so far, but presumably the potential for more is there. Amazon seems to do this in other areas, so it probably does also apply to Kindle apps. To a certain degree it makes sense for them, because it keeps them from being undercut by someone else. About a year ago Sony started a program to allow iPhone/Android like games on their portable gaming system the PSP. But the ones that have been brought over tend to cost $5, compared to $1-2 on the iPhone. Which has caused a lot of people to complain to Sony about the high prices for the same game.

01-16-2011, 08:58 PM	#6
leebase Karma Kameleon Posts: 1,386 Karma: 3934847 Join Date: Aug 2009 Device: iPad, iPhone 4S	More proof the publishers were right to worry about Amazon's pricing power Lee

01-16-2011, 10:43 PM	#7
kevinp Evangelist Posts: 416 Karma: 3394968 Join Date: Jul 2004 Location: Orlando Device: Nook HD+; Nook Tablet; Kindle 3; Kindle for Android on HTC EVO	Publishers get to charge whatever they want, but developers can't? I hope the developers go somewhere else.

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