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If you read carefully, they get (up to) %30 of the book price in margin from the publisher. Then they are asked to turn around and pay %30 of the book price to Apple. This means they make %0 net.

Subtract from the %0 net margin the costs of doing business and you are in a lot of trouble.

Sounds like they need to move to a premium app model and stop trying to make money from book sales.

To the best of my understanding, in the top model here iFlow gets 0%, in the bottom model, iFlow gets 30%. iFlow previously used the bottom model and got 50%. They could continue to use the bottom model at 30%, on iOS or other platforms, but clearly that's not enough for them to get by.

Their complaint here is the agency model of pricing itself.


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