I espouse a belief that apps have two cycles, one of growth, another of exploitation.<p>In the first, cash is burnt/used to give free goodies and provide good quality services. Rents are a byproduct and not a goal during this phase of the operation, the goal here is to build goodwill and market share through measures that the competition can't match. All in all, it is a good experience to use the service during this stage.<p>The second stage of the operation is all about rent-seeking. Portions get smaller, ads are deployed in full force, all of the bridges in and out are lifted so value can stay inside the ecosystem. Prices in general go up and it is time to cash out all of that goodwill and market share for money. Owners and founders generally sell during or before this stage, as the business will lose consumer confidence and competitors will gnaw at its heels until it becomes just another bad app/store in a very saturated market.<p>I remember reading a multiwork series on The Office (US) and it used terms like 'psychopaths' and 'sucker' to describe how organizations grow and die when the 'psychopaths' at the top decide to cash out, I'd point to their exit as the turning point in my text.<p>I can't back up what I feel with books or research, just what I've seen by looking at the progression of big businesses in my country. Apps, burger boutiques, consulting firms, even the furniture builder guy that lives around the block, all of them went through this cycle.