Channel Conflict Develops in Mobile App Store Ecosystem

Channel conflict is an almost-inevitable by-product of complex ecosystems. A recent survey suggests channel conflict already is rising in the mobile application store ecosystem. A survey of 400 developers by Evans Data Corp. recently found that 80 percent of developers in North America think they should receive more than 70 percent of the revenue generated by their apps in an app store.

Of course, when Google launched its Android Market, the company pointed out that  "developers will get 70 percent of the revenue from each purchase; the remaining amount goes to carriers and billing settlement fees."

"Google does not take a percentage," the company said. "We believe this revenue model creates a fair and positive experience for users, developers, and carriers." But what is fair from Google's point of view might not be viewed the same way by developers or carriers.

That's channel conflict.

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