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April 10, 2012

Amazon Launches App Store, Offers Rev Share to Developers

By Melissa Warner, TMCnet Contributing Writer

Apple and Google (News - Alert) dominated the app store market, providing a platform for developers to sell any app designed for Apple and Android products. Amazon looks to tap into the same market, offering a new platform for developers to earn revenue for their creations.



For months the company beta tested the service with a select group of developers, but is now open to people around the globe. The app store uses Amazon’s one-click shopping philosophy, selling in-game currency, expansion packs and subscriptions for the available apps and games. At this point the company does not allow in-app purchases – only through the store. It is believed, however, that this will improve over time.

Industry experts believe Amazon is more than ready to offer in-app purchases with its experience of online transactions over the last decade. The name provides trust for developers, and the company offers over 34,000 apps on its store at time of print.

Much like Amazon’s affiliate program, developers will receive a percentage of sales from each app sold through the store, earning 20 or 70 percent from each app sold, depending on Amazon’s price. Since the announcement last year, developers have complained about the revenue program because Amazon designates cost, sometimes less than what the app is worth.

Amazon App Store director Aaron Rubenson defended Amazon’s actions, explaining the company works on a 70-30 split and that each case is dealt with separately. The biggest difference between Amazon’s app store and the others is that developers can offer the app for multiple devices. Developers using Google’s in-app technology, for example, cannot use the app for Kindle Fire. In order to offer the app for this device, developers must use Amazon’s technology.

Despite Amazon’s current success, Apple (News - Alert) still leads the market with 89 percent in sales, while Google has seen 23 percent of this.




Edited by Braden Becker
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