Steve Jobs introduces the App store - iPhone SDK Keynote

It's worth going back to the App Store reveal video. [this video] 30% might be high, and there's certainly a case to be made for conflict of interest in the Netflix/Spotify arena, but the App Store is solving a lot of problems: it's a single, universal way to get an app out to every iThing, it manages updates, and there's no nickel-and-diming in terms of processing fees or hosting or anything like that. I thought it was in that keynote but maybe not: I remember someone comparing a 30% cut to the costs associated with getting a physical copy onto retail shelf, and if I recall correctly it was in the same universe.

Yup, I'd certainly agree that the App Store has various consumer utilities, and even in centralizing payment it has value as a consumer; I don't really want to give out my credit card to every app and I certainly want a central place to cancel subscriptions with no bullshit. That said, I do think that 30% is excessive. Job's original announcement [1] suggested that the App Store's 30% was the cost of running the App Store; I don't believe that it is really costing that much to run now. Reducing the payment premium and/or allowing customer choice of paying the App Store rate, or the outside the store rate is maybe the least bad option here. It's telling that there has been no substantive movement on margin from Apple or Google here. Steam is also 30% until you reach higher tiers, then it's 25%. Epic is only 12%. I think a lot of the current concerns would be allayed if the cut was only 12%. [1] [this video]