133: Collective Bargaining
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Welcome to Under the Radar, a show about independent iOS app development.
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I'm Marco Arment.
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And I'm David Smith.
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Under the Radar is never longer than 30 minutes, so let's get started.
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So sometimes in our development lives, we find ourselves dealing with or kind of beholden
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to one of the big tech companies, some kind of giant power that has way more power and
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influence and resources than we do, and we just kind of have to deal with it.
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And developers are not the first people to ever face this problem in the world.
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One way that people who provide work or labor have in the past gained power and leverage
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and negotiating power against bigger, more powerful entities that they depended on was
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Unions are complex.
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They can be good, they can be bad.
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Basically there is a group of people who is trying to start something called the developers
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It's kind of a bad name.
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It's not really a union in the typical sense.
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It's almost like a coalition, I guess, or it's like a very fancy online petition, basically.
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So you can see it's at the developersunion.org.
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And a couple of people I know are involved with this, and it's interesting.
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Their stated goal is to create basically a group of developers that advocate and kind
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of campaign with Apple or lobby Apple to make App Store development more financially viable
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and more sustainable.
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And the first goal they chose is they're asking Apple to commit by July to allow free trials
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for all apps in the App Store by next July, so about a year from now.
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And they say after that they're going to start advocating for a more reasonable revenue cut
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than the 70/30 split and other community-driven developer-friendly changes.
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The specific group here I think is, you know, it's fine.
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It's a group of people.
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I don't know most of them.
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I do know a few of them.
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I do think it's an interesting topic to talk about the amount of power and leverage that
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we have as developers with companies that we depend on like Apple or even bigger things.
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If you're making a Twitter app, there's been changes in the Twitter API recently that are
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pretty app hostile.
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And there's the question of what kind of leverage do those app developers have over Twitter
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to negotiate this and what kind of power do they have.
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And there's always basically in this day and age, most of the things you do, you're depending
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on at least one tech giant for some critical part of your business.
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So it is, I think, worth discussing how much power do we have?
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How do you know when you have power?
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And what are some effective ways to gain that power or to use it as leverage?
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It's such a nuanced topic though.
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I find I was thinking about what we're going to talk about.
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Because I feel like at its core so many of these types of things ultimately comes down
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to a question of idealism versus pragmatism.
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That it would be lovely if Apple, in the example of the developers union and what they're trying
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to advocate for, it would be lovely if they had a series of policies that encouraged sustainable
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small businesses on the app store.
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Like if that became a desire, a goal, an objective for Apple, that would be great.
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And the idealistic part of me sort of likes that thought of that being something that
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Apple takes seriously, that they start to care about, and that they take that caring
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and they turn it into policy changes that are specifically geared to making that happen.
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Like that sounds wonderful.
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Then the other part of me, the more pragmatic part of me says, "I don't think that's actually
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going to happen.
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I don't think that's something that a company like Apple sort of necessarily would care
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about or at least not in a way that would have a dramatic change."
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And if it did, then it's like in a weird way, it would be difficult.
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It just changes the set of problems I have to work with.
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That if in some ways now it's like it's super sustainable, now there's more competition.
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None of these things have no consequences.
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There might be more delightful consequences, but any change you make in a situation like
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this is going to have a variety of knock-on effects.
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And so it makes me think then on the practical side, part of what I've just sort of—my
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typical approach is to say, "The situation will never change.
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The situation is what it is.
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What can I do about it?
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How can I structure my business around that?
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How can I work out that if I find myself in a position where I don't really feel like
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I have big power or much power influence?"
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That's probably true at the low level, but there's usually at least something where
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you have to be able to look at what you do have, and you have some amount of leverage,
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and you can provide some amount of value to even a bigger company.
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For example, one of the things that comes to mind for me is I don't feel like I have
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much power influence at the high level, but at an individual level, at the low level,
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I provide a service to Apple every summer typically where I try all their APIs out and
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find all the weird issues and bugs and problems with it, and by doing that and doing something
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that I've been doing for a long time, I can exert a certain amount of—I have a certain
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amount of pull and connection with a variety of people within Apple who, having their goodwill,
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is then beneficial to me.
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And that side of things is finding that a teeny point of utility that I have to them
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where I'm not interchangeable and emphasizing it, but that tension between "boy, it would
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be nice" and "what is actually going to happen in reality?"
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I feel like is such an awkward thing to navigate.
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Yeah, I think when talking about trying to form any kind of power or collective bargaining
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power against Apple, I think the reality is they don't care about a group of a few hundred
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independent developers.
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They just don't care.
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They have, like, what, hundreds of thousands or millions of developers registered with
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And so anything that you can organize with a few hundred to a few thousand people on
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a website is going to only ever be a very, very small percentage of their developers.
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Furthermore, if you look at what apps are actually used and the frequency of what apps
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are actually used and bought and downloaded and things like that, a lot of them aren't
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indie developers.
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A lot of them are big companies.
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And a lot of those big companies do have power and influence over Apple.
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For instance, look at the drama that happened with Uber back about a year ago when it was
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found that they were abusing the unique identifiers of the phone to track people.
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Look at all the drama that always erupts around whenever Facebook has some creepy thing they're
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doing with their app or they're abusing a part of the system to get more data or stay
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running more in the background.
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The reality is that Facebook and Uber have immense power over Apple because Apple can
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threaten to say, "Look, if you don't fix this, we're going to take your app out of the store."
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But Apple also knows that they can't really take those apps out of the store because if
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they do, they're going to have a big problem with their customers.
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If their customers buy an iPhone and that iPhone can't run Facebook, that's going to
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be a pretty big problem for Apple.
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All the fallout from that is going to land on Apple, not on Facebook.
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And Apple knows that.
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So Apple knows that in that relationship, they kind of have to reach some kind of deal
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with Facebook where like, "Okay, we'll find a happy medium where we can work together
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on whatever you want to do."
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Same thing with Uber, right?
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That's why when Uber was found to be doing this gross, horrible thing, they got a private
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phone call from Tim Cook, not just kicked out of the app store with an email, like what
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most of us would get.
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So there are entities and companies that do have bargaining power over Apple.
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We are not those entities.
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If all of our apps got removed from the store, if every app made by an indie developer got
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removed from the store tomorrow, there would be angry people, but it wouldn't be anywhere
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near what would happen if Facebook was removed or if some of the big games from the big game
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publishers were removed or if Netflix, the big companies like that, they're the ones
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with the power here.
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We unfortunately aren't.
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Additionally, the world of indie developers is quite large and quite diverse.
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So any effort to organize, if you look at the way unions in the physical world do it,
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it's fairly easy to make contact with, to reach, to meet with every employee at a factory.
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That's something that is reasonably done in the real world.
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There is no way really for any of us to reach all or even most or even a majority or even
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a plurality of indie developers.
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There are just too many of us, too many different areas, too many different languages, too many
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different cultures.
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There'd be no way for any large effort to actually try to contact and then organize
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indie developers in a useful way.
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So any kind of organization like this would always be limited to some small community
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relative to the larger group.
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And so there's no way that's ever going to have power to be able to demand things
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from Apple and have a reasonable chance of getting those things done.
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There are different ways to do that, but mass organization and trying to do what unions
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do in regular industry or real life, I guess, whatever, it's kind of a weird term, but
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trying to do what unions do with factories and stuff is not going to work in the indie
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iOS developer scene because it's totally different.
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The numbers are totally different, the situation is totally different, and developers might
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not want to be a part of this.
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Even if you can reach them, people have different opinions.
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A group of people who dictate a list of things like this, their primary thing is to get Apple
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to commit to allowing free trials for everything.
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I didn't put my name on this because, first of all, I think that's a lost cause.
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I think that battle was fought and lost long ago.
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Apple has been very, very clear that they don't think that that's a good model for
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the app store, that they want people to use various in-app purchase and subscription things
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I didn't want to put my name on this because I feel like I'm asking for something that
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I'm never going to get, and that puts you in a bad negotiating position to have the
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very first thing you're asking for be something that you just have no chance of.
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Even something like this, I read this, I know people who are in this, and even I wouldn't
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put my name on it.
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That's just one example.
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Any effort you try to have to try to mass organize iOS developers, you're going to have
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this problem where developers are pretty resistant to that kind of thing, even if you can reach
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The reality is you probably won't reach a large percentage of any developers.
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>> Yeah, and I think that diversity angle is in many ways the root of why, it's the
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funny thing about why we as a group have little, in general, would have limited power against
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a larger organization.
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By the nature of our diversity, of all of the different interests and genres of apps
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and approaches and even business structures that we have, that diversity is in many ways
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what makes us a rich and interesting community that I think can make some really compelling
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software that our goals are often not necessarily just the same type of goals that Netflix or
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Facebook or Uber has.
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Our goals are, I know many developers who develop apps because they love making apps,
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and the business side of it is much more diminished than a company that is entirely focused on
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the bottom line and extracting every possible penny out of their customers.
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The diversity there is what makes us interesting, but also diminishes dramatically our power
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in the situation.
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I think in many ways it is because we all have different goals and needs and wants that
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what I would want, I don't even honestly, I was trying to think about what I would want
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Apple to change in the App Store.
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Things like free trial, I don't think I want that.
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If it happened, it would be fine, but it wouldn't really affect me.
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None of my apps really would benefit from having a free trial necessarily, I don't think.
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I can imagine and I know of many apps where it would benefit, but for my apps personally,
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I'm not sure that really fits the type of app I make.
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A better revenue split with Apple, sure, sounds great, but the reality is I make most of my
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money outside of Apple's cut.
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I make most of my money from advertising that I put in my ads.
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That's the business model I'm in.
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That's actually, it would be nice.
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I'm never going to say no to more money, but just as an example of, as somebody who
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has been an independent developer for such a long time, those types of topics aren't
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the things that, if I could sit down with Phil Schiller or whoever the appropriate decision
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maker at Apple was and was advocating for things, I'm not even sure there's that many
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of these types of more policy changes that I would look at.
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I would be looking for things that are much more tactical probably and low level, like
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seeing changes in the way iTunes Connect works or being able to A/B test screenshots.
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I could imagine a variety of things like that that I could see wanting to change.
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Or even more over, you start to get into other things where it aren't necessarily related
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to my business or being an independent developer that I think would just be good things in
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a more fundamental way, where it's like I think about how what I don't like about the
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App Store most in some ways now is the degree to which it is focused around gambling style,
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inapp consumable, inapp purchase applications.
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That's more of almost a philosophical or political desire for change there rather than one that's
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strictly coming out of a business, a felt need that I have in my business.
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This is just me and my opinions.
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When I see something like this, it's the difficulty around the diversity that a group of independence
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brings by our fundamental nature.
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Being an indie is short for being independent.
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That independence makes it very hard to imagine a collective thing where by nature, by becoming
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a collective, you lose independence by definition.
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So you know, I think the big issue here with trying to organize in a union fashion basically,
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to summarize what we've said, is that basically we don't have any way to accumulate enough
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power to matter.
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Because you're never going to reach too many developers because developers are such a diverse
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Even if you try to organize developers, even if you could reach them, it's really hard
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to get everyone to agree on what the causes and priorities should even be.
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And one of the biggest problems with that is that, with using this kind of structure,
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is that there's basically no way to enforce people staying in a union or complying with
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You know, one of the biggest, like most dramatic things you hear about with unions, and one
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of the ways they can exercise their power, is by a strike.
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But there's no way to actually have a union of developers enforce a strike.
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Like what are we going to do, I'll pull our apps out of the store?
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In the real world, with unions for like a factory and stuff, you can enforce that with
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social pressure, with intimidation, in worse ways.
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But there are ways to encourage and enforce compliance and actual, like you know, being
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a union, like actually unity and standing up with everyone else.
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In the app store, there's no way to do that.
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Like what's going to happen if a whole bunch of people pull their apps out of the store?
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Well a whole bunch of other people will keep their apps in the store and make more money.
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Like there's just no way to actually pull that off.
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So basically I think this whole structure is not great.
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And what's instead, the way to accomplish things with Apple, first of all, is to recognize
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whether what you're asking for is realistic or not.
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With things like reducing the cut, Apple already has given us a way to reduce it from, to increase
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our part from 70 to 85.
00:19:41
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And that is with subscriptions after the first year.
00:19:44
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And when they first said this, I thought, great, but you know, I don't think it's ever
00:19:47
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going to be that meaningful to me.
00:19:49
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Well I now have one of these subscriptions, and as of this past fall, I now have people
00:19:53
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on the 85% tier.
00:19:55
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And it turns out that so many of them are on the 85% tier, because so many of them stuck
00:19:58
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around for the second year, that my average app store cut is now 79%, which is great.
00:20:05
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This is way better than I would have expected how this would go.
00:20:09
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So they actually are giving us ways to do it in small ways like that.
00:20:13
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Free trials, again, there are ways within App Purchase to kind of approximate that,
00:20:19
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and people have tried a lot of them.
00:20:20
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And people have largely found a way to adapt to that.
00:20:22
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So simply taking advantage of what we have in the Apple system, like taking advantage
00:20:27
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of the things they do give us, is, as you mentioned earlier in the show, mostly the
00:20:31
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pragmatic option.
00:20:33
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Because here's one thing they're not going to do.
00:20:35
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They're not going to all of a sudden become beholden to a group of 100 indie developers.
00:20:39
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As we mentioned earlier, that's just not enough developers to matter.
00:20:42
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They're also probably not going to reduce their cut for everybody, because why?
00:20:48
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They make tons of money with that, and they are trying to grow their services business,
00:20:53
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and that's the biggest part of their services business.
00:20:55
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So there's actually massive Wall Street and potential board incentive to not voluntarily
00:21:03
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lose their services revenue for no apparent reason.
00:21:07
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I think if they actually did that and services stopped growing for a few quarters, Tim Cook
00:21:12
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would have a big problem on his hands from investors and the board and everything else.
00:21:16
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So that's not going to happen.
00:21:18
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It's just not going to happen.
00:21:20
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So instead, focus on things you can do.
00:21:23
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So things like policy changes, API changes, editorial changes, those are all things that
00:21:27
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we can do by using the press, by using blogging and Twitter and podcasts.
00:21:34
◼
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We do have influence over things like that, because Apple is sensitive to bad press.
00:21:39
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We also have the ability to simply argue and make good points in public, because inside
00:21:45
◼
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Apple most decisions that we see on the outside had or have an argument behind them that happened
00:21:52
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And they use public blog posts and comments and articles and things like that to help
00:21:58
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bolster one side or the other of those arguments inside.
00:22:01
◼
►
And those can and have changed the way these decisions are made or changed the outcome
00:22:07
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►
when they're good arguments or when enough people or when influential enough people are
00:22:11
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making them.
00:22:12
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So this is how to argue with Apple.
00:22:15
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►
This is how to put pressure on Apple, is make good arguments and use the press.
00:22:21
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►
Those are the tools we have.
00:22:23
◼
►
Beyond that, unless you're planning on becoming Facebook or Uber, you basically have to work
00:22:28
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►
within the system that we have.
00:22:30
◼
►
And that's not necessarily a horrible thing, but it is the reality of it.
00:22:35
◼
►
If you don't want to work within the Apple system and you don't have any interest in
00:22:42
◼
►
doing the things that we can do, if you only want things they're never going to give us,
00:22:48
◼
►
you don't really have a lot of options here, because you don't have any power.
00:22:51
◼
►
In any negotiation, it's very important to recognize, do you actually have any power?
00:22:57
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►
And what is that power?
00:22:58
◼
►
And what is the value that you are providing to this big entity that you are threatening
00:23:02
◼
►
to take away if they don't comply with your demands?
00:23:05
◼
►
And if that value isn't really big, they're probably not going to comply with your demands.
00:23:10
◼
►
So my suggestion for pragmatism and for healthy business practices in the App Store is to
00:23:16
◼
►
just work within what we have.
00:23:19
◼
►
Make good arguments with blog posts and stuff like that when you have them, but otherwise,
00:23:24
◼
►
this is the system we have and it's better off to just be in it.
00:23:28
◼
►
And I think that approach, which I think is broadly, I think it's what both of us have
00:23:32
◼
►
been doing for years now, is the approach of recognizing what abilities and power we
00:23:43
◼
►
have and the things that we really uniquely bring.
00:23:47
◼
►
I think we have, like when you and I talk about things in the App Store, it has the
00:23:53
◼
►
weight of someone who has been doing this for a long time and who has a lot of experience
00:24:00
◼
►
And so if that is being used internally as a argument for something, it is in many ways
00:24:06
◼
►
it is building up a reputation that hopefully carries some weight that if, at the very least,
00:24:12
◼
►
would get someone's attention or at the very least would be a useful mechanism inside of
00:24:19
◼
►
Because in reality, in weird ways, there was a time when I was fairly pessimistic about
00:24:26
◼
►
the App Store.
00:24:27
◼
►
I'm pessimistic.
00:24:28
◼
►
There was a period probably maybe about six to seven years into the App Store where I
00:24:34
◼
►
started to really be a little bit more down on it and started to question whether this
00:24:38
◼
►
is where I wanted to make my living.
00:24:40
◼
►
But I would say more recently that's not the case, that I've seen substantial and
00:24:46
◼
►
measured improvements in the App Store year on year on year.
00:24:50
◼
►
Thanks, Phil.
00:24:51
◼
►
Yeah, it's like, "Thanks, Phil.
00:24:53
◼
►
It does seem to coincide with some leadership changes," which is great.
00:24:57
◼
►
And so from that perspective, I look at it and I just think, "These things are going
00:25:02
◼
►
in a good direction."
00:25:03
◼
►
And I like that.
00:25:06
◼
►
It's cool to see.
00:25:07
◼
►
It makes me feel confident that this is still a good place for me to make my business.
00:25:12
◼
►
And because those changes are there, it makes me feel comfortable to just keep on with the
00:25:17
◼
►
approach of finding interesting and creative ways to work within the rules as they are.
00:25:24
◼
►
I think in many ways, that is what I found to be very successful.
00:25:28
◼
►
It's like, "Well, Apple won't give us X."
00:25:31
◼
►
It's like, "Well, okay.
00:25:33
◼
►
How can we approximate X?
00:25:34
◼
►
How can we find an interesting and creative way around that?"
00:25:38
◼
►
And often that creates new and interesting opportunities.
00:25:41
◼
►
It ultimately, in a lot of cases, seems to shift slowly Apple's policy or it creates
00:25:48
◼
►
reasons and examples for them to want to invest time, energy, and effort into doing something.
00:25:55
◼
►
I think the degree to which Apple apps have started to move towards a scription model
00:26:02
◼
►
for a lot of their businesses, which by and large seems to be...
00:26:07
◼
►
It's not a universal fix or it's not a universal solution, but by and large seems to be working
00:26:12
◼
►
well for a collection of applications.
00:26:15
◼
►
I think there's issues around subscriptions that have gradually been worked on and improved
00:26:20
◼
►
beyond things to do in just the revenue split.
00:26:22
◼
►
But on the technical side, every year it seems like at W3C, there's a whole new set of things
00:26:29
◼
►
that Apple is investing engineering time into to make it better.
00:26:33
◼
►
And I'm sure that it's coming from experiences that developers are having when they actually...
00:26:39
◼
►
If Apple gives us something, if we start using it, we find the issues, they are gradually
00:26:43
◼
►
responsive to that.
00:26:44
◼
►
And it would be lovely if they were instantaneously responsive, but that's not realistic.
00:26:49
◼
►
I don't think that's something that I would ever really expect or put hope into because...
00:26:54
◼
►
And the reality is it's probably wise for them to steer this...
00:26:58
◼
►
It's like the App Store is kind of a big ship and steering it with a slow rudder at the
00:27:04
◼
►
back, making small course adjustments, seeing how they turn out, make a small course adjustment
00:27:09
◼
►
to see how it turns out, is honestly probably what I would prefer.
00:27:12
◼
►
That making large sweeping changes abruptly sounds kind of terrifying in some ways.
00:27:17
◼
►
I'm not saying this is what these...
00:27:18
◼
►
Anyone is specifically advocating for, but by and large, Apple's approach of this gradual
00:27:23
◼
►
improvement, as long as I find myself in a place where I feel like every year the App
00:27:29
◼
►
Store gets slightly better, that it's gradually improving, then I'm happy.
00:27:35
◼
►
I like that stability that that provides, and I like the feeling that maybe it's easier
00:27:40
◼
►
in some ways at an individual level, both personally with people you might know who
00:27:46
◼
►
work within Apple or going to WWDC, and I go to the iTunes Connect Lab and I talk to
00:27:51
◼
►
the people who work on the iTunes Connect team, not because I think that that specifically
00:27:56
◼
►
Like things I'm saying there are specifically making change, but it's planting seeds in
00:28:01
◼
►
people's mind that they have a counter example in their head when they are at the meeting
00:28:07
◼
►
and they're discussing this thing.
00:28:08
◼
►
I talk to them about something that I find frustrating.
00:28:12
◼
►
Maybe when that comes up in a meeting in six months, they have that counter example in
00:28:17
◼
►
That kind of personal connection and that kind of personal intervention is the kind
00:28:23
◼
►
of thing that we do have power in, and that's the power that I think we can best use as
00:28:29
◼
►
independents is embrace our uniqueness, embrace our individuality, and use that as best we
00:28:36
◼
►
can because I think that is far more powerful and far more likely to succeed than trying
00:28:42
◼
►
to build a cooperative that would have a singular vision or a singular goal.
00:28:50
◼
►
We lose what we are in some ways by doing that, as noble and as good meaning as the
00:28:58
◼
►
initial thought may be.
00:29:12
◼
►
Thanks for listening everybody, and we'll talk to you next week.
00:29:37
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[BLANK_AUDIO]