Written by Remy Kozak
I am not sure how many of you paid attention to the blanket e-mail that was sent to ALL vendors of software on Blackberry AppWorld by the Blackberry AppWorld Management Team on April 17, 2010 – just prior to WES. It took me a couple of days to get around to reading it but once I did I had to reread it twice… and send a message to RIM expressing my concern. Needless to say, my questions appear to have fallen on deaf ears SO I might as well do the next best thing and make sure people are aware of the new Improvements to AppWorld. Well, the folks at RIM got back to me – thank in large part to the involvement of Caroline Lewko at WIP Connector.
Up until April 17th, RIM took 20% of the non-download revenue AND Digital River (their only Merchant of Record or MoR) also took 20% of the total download revenue.
This left only 60% 80% for the App Developer – worse better than the iPhone AppStore and comparable to Android Market. While Blackberry still dominates the Smartphone handset segment with >40% market share so they appear to have accepted that they are playing catch up in the application space.
It seems the Blackberry AppWorld Management Team was thinking the same thing. So aAs of April 17th, 2010, under the guise of “opening up” their market to operators and other Merchants of Record, RIM decided increase their share… and that of the MoRs.
Now RIM takes 30% and Digital River (still the only MoR with a formal agreement) takes 30%.
This leaves 470% for the App Developer.
As I said, it took a After my first couple of reads of the new contracts for this to sink in I actually thought the developer share was reducing to 40% or 51%. And no,But the MoR does not take 30% of the remaining 70% after RIM takes their share. The MoR takes 30% of the full retail price. RIM take NONE of the retail price but 30% of all subsequent revenues – except advertising.
Overall, not as nice as 80% to the developer but RIM has added access to Operator sales channels and also included the payment processing costs in their share. So there is upside, it just remains to be seen how much.
Thanks to Tyler for spelling this out for me and clarifying some major misconception.
This is all without mentioning RIM still need to try to do something about how much longer it takes to develop and test anything for RIM devices – due in part to the need to support and test legacy handsets but mostly because the various devices and operating systems are so inconsistent – especially across carriers.
We will launch version 1.5 of echoecho for Blackberry later this week. Since echoecho is a free app, we have nothing to worry about (aside from all the extra work to deliver a robust Blackberry solution).