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by Adverblessly
775 days ago
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There have been various efforts to estimate the effect piracy has on revenue like https://news.ycombinator.com/item?id=15319476 or http://blog.wolfire.com/2010/05/Another-view-of-game-piracy So depending on product category it might be a large drop (EU study finds -38% displacement rate for books) but it might also be a boost (EU study finds +24% for video games), and it is hard to say in general, since even a 90% piracy rate might only mean a maximum of 5%-10% lost sales (from the wolfire blog post). Either way it isn't at the level of "impossible to succeed". If we are talking about app stores specifically, I bet a much bigger factor in (lack of) success is discoverability, both because your app is literally hard to find and because app store owners allow a flow of cheap clones to compete with your genuine app. |
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Yes, Adobe, Microsoft or makers of viral AAA games absolutely benefit from piracy (that’s why they have actually tolerated it for decades): it helps their software penetrate the market and get more users hooked up on their ecosystem. However, to John Doe’s lifestyle business of a couple small niche or utility apps each lost sale is bread off the table.
In addition, piracy on iOS is great for major providers who do subscription services (a device where you can pirate means a device with more users, and more users means more monthly revenue).
Again, the people hit the most are the above-mentioned small time John Does.