So this MAY mean their revenue or “earning capacity” may ultimately be too low to actually make a sustainable living.
This statement feels like unsubstantiated speculation to me. Guessing the state of a company just from the frequency of their sales? Just curious... Thanks
It's speculation, but it's not
wild speculation, since most of us (like Temme) have been around long enough to at least guess what the tea leaves are telling us.
We know from experience (and from every developer telling us) that most of a product's sales come from the initial period you offer it. The biggest chunk of income is in that first month. In this case, that first perpetual offering would be last summer, when they offered lifetime Musio for $499. (On sale from $999. Remember what a killer deal we all thought that was?)
Countless developers have told us that sales decline pretty rapidly after a product's initial offering, although there can be additional spikes from an
occasional boost from a big sale. But in Cinesamples' case, subsequent sales haven't been "occasional." (I think this is the third time Musio 1 has been offered for $199 in the last two months?) My guess is they're experiencing a serious case of diminishing returns at this point, since the low hanging fruit, and even much of the medium hanging fruit, has already been picked. (I could be wrong, of course, but that's my guess.)
I'm guessing that by now, most Musio users here on the forum (including me) own Musio 1, rather than subscribing. So for many (if not most) of us, CS/Musio doesn't have anything left to sell us. Making a perpetual license so price-attractive is great for a short-term income spike, but it reduces future sales AND it reduces subscriber numbers.
That diminishes their back end. But they need that back end. Not just for new products (beyond kalimbas and toy pianos), but also to keep the software up to date (Mac OS updates are not a developer's friend), let alone adding multiple mics, etc. None of that is cheap.
So it's not that crazy for people to wonder if a sustainable amount of income is going to keep coming in for the coming year or years. I hope it does, of course, since I'm a customer myself, but the rollout and marketing strategy does give me pause.
* Note - As a developer myself, I realize it's not a great look for me to be chiming in here, although our products are very different, so I don't think I'd call myself a "competitor". As a long time member, though, and especially as one who's seen a whole lot of companies come and go, it's hard to keep biting my tongue and not share my own thoughts.