The situation you describe has already happened in the console world - 
Nintendo. Today the Big N is a shadow of it's former self, albeit still quite 
popular.

Apple offers the iTunes store -Nintendo used cartridges they manufactured and 
licensed as their way of controlling what is available and taking a percentage.

Whyis apple copying Nintendo all over again ?

On 26/02/2011, at 6:37 AM, Reinier Zwitserloot <reini...@gmail.com> wrote:

> Yes, of course. Similes are a way of making complicated issues seem simpler.
> 
> And... this is one particularly complicated issue.
> 
> The deal seems pretty solid. In exchange for 30% and _significant restriction 
> of liberties*_ you get to sell your apps into a platform that's renowned for 
> stability, with quite a bit of free marketing to boot if you can finagle your 
> way into the top 25 lists. That very stability appears to be dependent on the 
> restrictions and so seems quite allright.
> 
> This has a parallel to sharecropping, where getting into the sharecropping 
> game was far, far simpler than buying your own land.
> 
> And for a time it was good. In fact, the entire model isn't inherently 
> designed to end up as racket for the platform owner, but it does appear to be 
> heading that way over time. It went all pear shaped with share croppers and 
> it might, too, with apple's deal.
> 
> When the next enormous app comes along for the iPhone, on the scale of for 
> example a facebook, what would happen? Apple could claim some new obscure 
> interpretation of the rules and simply ban your app and you'd have absolutely 
> no recourse**, which instantly means that the truly large valuations for 
> companies based around iOS apps simply cannot occur, because that risk is far 
> too high. Apple changes the goal posts all the time (just like the 
> sharecropper business!), for example, with these new rules regarding buying 
> subscription content and eBooks off-site. The internet thrived, and AOL died.
> 
> *) Hyperbole? Hardly. One can argue these restrictions aren't being forced 
> upon you, you're accepting them with open eyes when you sign up to put an app 
> in the app store, but what you sign up for includes significant restrictions, 
> I hope we don't have to quibble on this point, but we can, if some aren't 
> convinced.
> 
> **) Well, there's making a stink on the web, but this system doesn't scale, 
> is unfair (the famous can far more easily air their grievances, except in 
> such a system only the already famous stay famous. It's fairly well known 
> that an economic system where only the wealthy can be wealthy will degrade 
> into irrelevance very quickly. This is no different), and rewards twisting of 
> facts and being a loudmouth. A bad system if ever there was one.
> 
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