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[AI] Apple unveils subscriptions for iOS App Store

post #1 of 18
Thread Starter 
Quote:
Apple on Tuesday unveiled its new App Store subscription service, allowing publishers of content-based applications for iOS devices -- like newspapers, magazines, video and music -- to offer recurring billing, but preventing them from including links to external websites to purchase content or subscriptions.
Quote:
"Our philosophy is simple — when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing," Apple Chief Executive Steve Jobs said. "All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app.
http://www.appleinsider.com/articles...app_store.html

Very clever scheme by Jobs here. If in-app purchases are made available for things like Kindle, it's a win for the user because it's that much easier/convenient to get content and a win for Apple because they'll get a cut of the money, but an obvious lose for the vendor. Obviously in-app would be preferable.

Rhapsody has already said they're not playing ball:

http://www.engadget.com/2011/02/15/r...issues-statem/

Quote:
Our philosophy is simple too – an Apple-imposed arrangement that requires us to pay 30 percent of our revenue to Apple, in addition to content fees that we pay to the music labels, publishers and artists, is economically untenable. The bottom line is we would not be able to offer our service through the iTunes store if subjected to Apple's 30 percent monthly fee vs. a typical 2.5 percent credit card fee.
Super greedy move by apple.
Edited by ForumViewer - 2/15/11 at 4:27pm
 
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post #2 of 18
Greedy + Apple....

No surprises there.
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post #3 of 18
Seems like a good idea for newspapers/magazines.
post #4 of 18
Quote:
Originally Posted by Tw34k View Post
Greedy + Apple....

No surprises there.
those two go together like a fish in a pond.
    
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post #5 of 18
http://gizmodo.com/#!5761383

This might actually be the straw that makes people wake up about Apple. I can't wait for the anti trust suit, in fact I'm more excited about that then anything else right now. It is coming, mark my words.
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post #6 of 18
I understand that Apple is taking the "you wouldn't have had those sales if it werent for us so we deserve 30%" stance...

but 30%!!?!?!

Most of these subscription services don't even operate on a 30% profit margin, taking a loss to keep a their exposure/marketshare.

10-15% would be much more acceptable.

Providers hitting the "submit" button on their refined app is going to feel like saying ok to the kind guy at the pawn shop that buys your AAA x360/ps3 games for $6
Edited by SyncMaster753 - 2/15/11 at 5:13pm
    
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post #7 of 18
Quote:
Originally Posted by SyncMaster753 View Post
I understand that Apple is taking the "you wouldn't have had those sales if it werent for us so we deserve 30%" stance...

but 30%!!?!?!

Most of these subscription services don't even operate on a 30% profit margin, taking a loss to keep a their exposure/marketshare.

10-15% would be much more acceptable.

Providers hitting the "submit" button on their refined app is going to feel like saying ok to the kind guy at the pawn shop that buys your AAA x360/ps3 games for $6
Exactly. I read a report on Napster making only a 23 percent profit total, and they have as many subscriptions than Rhapsody. But for some reason MS's Zune marketplace/subscription made about a 38 percent profit.
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post #8 of 18
Good to know Apple won't be significant for much longer. Jobs leaving was the best thing for consumer electronics and technology and things should begin looking up with less overpriced mass marketed iCrap.
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post #9 of 18
Solution: Abandon ship.


If Apple wants the iPhone to be a pricey niche product then let it be. With Nokia supporting Windows Phone and everyone else supporting Android I think its time to wake up and realize that the iPhone is just one phone, and that Apple really has no position of authority to make these demands.
    
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post #10 of 18
Wow, I guess I can see how Apple thinks the 30% is justified but that just seems over the top to me. No surprise here though apple asking for more money for doing... nothing? I can't help but feel like Apple backing itself into a corner. Sure people will continue to buy their products, but I'm curious if that fan-base will start to dwindle with moves like this as well as the rise in competition available in the smartphone market these days?
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