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legitsteryesterday at 9:17 PM3 repliesview on HN

This means Apple is literally going to take nearly 3x in fees from Patreon's customers than Patreon is taking from their own customers.

My understanding is that the reason the number 30% is so magical is a historical anomaly. When software was physically distributed back in the day, 15% of the MSRP was reserved for the distributor and another 15% for the retailer. When these digital marketplaces were set up, the companies just said "well, we're the distributor and the retailer, so we'll keep both". Forgetting the fact that the cost to distribute and retail the software is literally pennies on the dollar of what it used to be.

I think the irony in this case is that this is a greed problem of their own making. When Steve Jobs announced that apps on the original iPhone would only be $1-$3, he set off the first enshittification crisis in the software industry. In 2008, Bejeweled cost $19.99 if you wanted to buy it on the PC. On the iPhone it was $0.99! This artificially low anchor price is what kicked off the adoption of ad and subscription driven software models in the first place.


Replies

bryanlarsenyesterday at 9:28 PM

My understanding was that the retailer margin was 50% and the distributor margin was 10%. So Apple/Steam/etc went "half of 60% is a great deal".

Of course the retailer margin is never actually 50%. That's theoretical if 100% of product is sold at MSRP. Actual retail margins are about 25% because of sales, write-offs, et cetera.

OTOH when there's a sale in Steam, they still get their full cut (of the reduced price).

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scyzoryk_xyzyesterday at 11:04 PM

Had no idea about the history and the 15%/15% split but when the topic comes up I just remember how good the 30% seemed back in, what, 2008?

It made perfect sense that this shiny new iOS platform would take 30% of a cheap app to ensure that it matches the high quality of iOS. These were little productivity apps and games at the time.

This however - I just don't understand what the need is for an app at all for Patreon. Isn't this a website/platform kind of thing? Wouldn't an app just be an additional window into the Patreon platform?

What's next - 30% of my pizza price goes to Apple because I ordered it on my phone?

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kccqzyyesterday at 10:54 PM

Steve Jobs never announced a price ceiling for apps on the App Store. The well-known I Am Rich app for iPhone retailer for $999, the actual price ceiling.