Tag Archives: business

App Store pricing

Like Spotify’s complaint before it, yesterday’s “App Store Principles and Practices” document from Apple got me thinking.

Apple talks a lot about free apps not paying anything (which isn’t entirely true of course), and it’s always pitched as a feature.

But the more I think about it, the more I think it might be a bug.

This effectively means that all paid apps have to subsidise all free apps. Is this what’s preventing Apple from reducing the 30% fee?

Why should free apps get a free ride? How much value is Facebook getting from Apple? My apps don’t take your personal data and use it for advertising purposes — something that Apple seems to be in favour of — yet I have to pay 30% and Facebook pay nothing.

Of course, we have to consider unintended consequences. It would be fair for Google and Facebook to pay, but what about a game I wrote in my spare time? Or that useful utility I wrote for myself that I’m altruistically sharing?

I don’t know is the short version. Should they charge for each download? Or each App Review? They’d probably need exceptions for certain categories, but also to be very careful that the system doesn’t get gamed.

The other thing Apple doesn’t directly address is Spotify’s most compelling argument: the fact that Apple charges 30% commission for apps that provide digital services, such as streaming music or books, means that no one other than Apple can actually allow in-app purchases in those categories. Apple only allow in-app purchases with the fee yet many of these services just don’t have 30% “spare” that they can give Apple. Apple Music and Apple Books don’t have to play by the App Store rules and they don’t have to pay the 30% fee.

If anything, this is harder than than the free freeloaders problem. It doesn’t seem right that Apple couldn’t compete in these categories, yet the platform owner clearly has a huge advantage here.

Anyway, at least two issues here and no firm conclusions. They always say “bring me solutions, not problems.” Sorry, I failed.

ReWork

The gist of “ReWork” is that anyone can be an entrepreneur but you don’t have to follow the Silicon Valley tradition of seeking venture funding and providing foosball tables. If you do things right — different — you can make a sustainable business in a more traditional, bootstrapped way, and you don’t have to continually grow to be considered a success.

Many of the “lessons,” however, apply to almost any knowledge work. They subscribe to a less-is-more philosophy, and the book follows that example by being a quick read. Like the less-is-more outlook, that doesn’t make it bad, only very targeted.

If you’re looking for a complete framework for running your business, this isn’t it. (But then you’re probably not the kind of person who is likely to start a business I guess.) Instead, it’s a collection of related vignettes touching on varied aspects, from funding to focus to culture.

Much of the advice is so obvious that you wonder why more people don’t do it. But the fact that people don’t is exactly why their business (was 37signals, now Basecamp) has been a success and that writing about how it works doesn’t give away any “secret sauce.” It’s not that people don’t know the “secrets.” It’s more that people don’t have the discipline to stick to the programme.

Overall, there’s a lot of good material in here. If you own or work for a small company where you can potentially put the advice into practice, it’s probably worth a read.

Creativity, inc

I wasn’t entirely sure what to expect when I started “Creativity, inc.” In the end, it’s a bunch of anecdotes strung together to explain certain business practices that Ed Catmull believes has made Pixar successful. Half biography, half management guide if you like.

While the stories are engaging, and he has a surprising degree of humility, it’s difficult to see how many of the ideas can be successfully translated to other industries. Which is not to say that he’s wrong just that I wouldn’t expect to take his advice and immediately apply it to your workplace.

For example, he spends time talking about how the Braintrust has helped identify or solve many problems. But how would that work for a software product? (Is software engineered or crafted as other creative endeavours are? That’s a longer discussion for another time but, in short, I think it qualifies as creative.) I can see how it might help a review of the UX or visuals but the most helpful people for a code review would likely already be on the project. You need so much domain specific knowledge that I have a hard time seeing how an independent third party could provide anything other than high-level or generic development advice.

The other thing that stood out is that much of the advice would only work for companies awash with cash. I absolutely see the value in, say, teaching a designer how to code or engineers how to draw (two examples from Pixar U) but calculating that value and showing an ROI? Even the “rich” companies I’ve worked for have generally shown a preference for “shareholder value” and profits than hard to justify benefits for employees. Maybe that is why Pixar is successful where so many others are not, but you’d need a lot of spare money to support these endeavours, and not every enterprise is in an industry where they could afford do so even if they were willing.

Ultimately I’m a sucker for anything Pixar, so I found it to be an enjoyable read, and it certainly gives food for thought. Maybe that’s all it’s supposed to do. But will I be directly applying many of these lessons to my day job? Sadly not.

My delicious.com bookmarks for December 16th through December 21st

  • On this day in 1996, Apple acquired NeXT – Fifteen years ago today Apple effectively started its upward trajectory.
  • Why big companies can’t change – "At the polar opposite position from big industrial companies sit startups, nearly every one of which begins with an effortless expression of why? Big companies ask What? then How? but almost never Why?"
  • Christopher Hitchens, 1949-2011 – "I’m not going to say R.I.P. I don’t think Christopher Hitchens is at rest. I don’t think there is anything left of him to rest. I think he is dead. But tonight, I’ll be raising a glass of Scotch in his honor. The world is a better place because he was in it, and it is a sadder, less interesting place now that he’s not."

My delicious.com bookmarks for August 25th through September 1st

My delicious.com bookmarks for July 13th through July 22nd

  • The Rise and Fall of the Independent Developer – "My fear is that It’s only a matter of time before developers find the risks and expenses prohibitive and retreat to the safety of a larger organization. We’ll be going back to square one."
  • The Equality and Human Rights Commission’s choice is beyond belief – "But what these cases illustrate is that in certain areas compromise is not possible because the rights of different minorities are mutually exclusive. When one group refuses to fulfil its job description because it disapproves of another group, there is no middle ground, no give and take."