Comment by StilesCrisis
14 hours ago
The real problem here is that all those businesses are rounding errors on the balance sheet compared to ads, so the CEO doesn't care (or even know) about the issues and isn't motivated to improve anything.
14 hours ago
The real problem here is that all those businesses are rounding errors on the balance sheet compared to ads, so the CEO doesn't care (or even know) about the issues and isn't motivated to improve anything.
Then have they repeatedly fought so hard legally to get to keep extracting three revenue? If they didn't care about it, they wouldn't do it in the first place.
The problem is that there's no pressure on them to act any differently. If they made 100x as much money from app purchases, they wouldn't suddenly treat app developers better just because of that. They might treat them better if the app developers had better alternatives, but that would also be enough to force Google to behave differently even with the current amount of revenue.
Android and Chrome exist as moats primarily. Pichai came up in Chrome and understands moats. Obviously if you can get the moat to be self-funding (Google Play IAP revenue) even better. Things like "the developer experience on Android is bad" don't prevent the moat from doing its job, but "Google and Chrome aren't defaults on Android" are very much losing the moat.
I don't disagree with this. I don't honestly see how it relates to your previous comment that I responded to though. It seems more like support for my rebuttal, which is that the moat is what matters, not whether the revenue is a "rounding error" compared to their other businesses.
2 replies →