Amazon has decided that it would really like to attract more developers to its Android and Fire OS app store. So he’s following in Apple’s (and Google’s) footsteps by announcing a new “Amazon Appstore Small Business Accelerator Program” that takes less money. from developer’s pockets (via 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.