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Originally Posted by stonetools
Wow, I guess you would have a great point-IF I made that argument. What I'm arguing is that Apple deserves a cut for items sold on the IOS platform, for use on that platform.I've argued that apps which are in actuality storefronts should be treated as if they are storefronts and not as if there are mere computer software programs that have nothing to do with sales and selling. Your argument is that the wonderfulness of the Ipad would be compromised if Amazon has to pay Apple a cut of the millions of dollars it makes selling books, etc. on one of the greatest merchandising platforms in the world. Moreover, If Apple asked for a cut, they would flee the platform without even trying to negotiate and it would ruin the Ipad.
All of this sounds a bit different from the real business world, where contracts are renegotiated all the time and where merchants understand that they have to pay a cut for selling on any successful retail platform-whether it be Best Buy, Walmart, Macys, Amazon or Apple. I'm pretty sure that the businesses who are making buco bucks on IOS will negotiate it out with Apple.Lets wait and see.
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But what Apple is doing here is saying you must change your consumption app into a storefront and then give us an exorbitant cut of the proceeds.
Also, while you're right that it's normal for businesses to pay a cut for selling on a successful retail platform, it's not normal for them to also pay a cut for sales that take place off that retail platform.
If I subscribe to Sports Illustrated through Amazon, Amazon gets a cut of that subscription. However, if I renew my subscription directly, without going through Amazon, Amazon doesn't get a cut of that renewal. Apple's asking for a cut of the renewal - not just the original sale.
Taking another look at your mall analogy: yes, the mall gets a cut of every sale made in the mall; but if you get a store catalog at the mall, the mall doesn't get a cut of everything you buy from the catalog. That's what Apple's after, though, a cut of all the sales made from the catalog, just because you picked up the catalog at their mall.