Tim Cook says before the app store the cost of distributing software was 50-70 percent.
That’s nonsense:
Link (provided by John Gruber)
I happen to agree with John, but primarily because the Mac App Store doesn't distribute software. The Mac App Store resells licenses. Historically, resellers take a 20-30% percentage of MSRP, but they are supplied by distributors. Distributors come in two types: 'box movers' and 'republishers.' The former sell boxes to retailers. The latter may make the box for you and handle an entire market. It may also be a box mover as well. The cost of the 'box mover' can increase your distribution costs to 50%, and the republisher sort may increase it to 70%.
A reseller effectively provides you with a 'fat pipe' to end users. That's always been true. If you want a reseller to do you any special favors, typically a software developer has to pay them (much like working with any retail chain).
Did you catch the testimony of Tim Cook or the other CEOs? What do you think?