apple: I respect the new ecosystem you're creating, but 30% is too much, especially for this subscription model.
How much do they pay to newspaper sellers?
apple: I respect the new ecosystem you're creating, but 30% is too much, especially for this subscription model.
Well, I don't know... sure, they have to give 30% to Apple but at the end of the day they receive 70% and even though it's not as profitable...
What 30% buys you:
- Unlimited Hosting (5%),
- Subscription billing system (expensive to provide customer support),
- Payment Gateway (they take between 5-10% of every payment transaction)
- Technical Support
- Advertisement of Your App in High Yield CPM
For companies that don't already have an online billing system iTunes
provides extremely lost cost system.
Cost of developing our billing platform ($10,000)
Cost to our payment gateway on every transaction under $1 (10% 20¢ fee)
Cost to our payment gate on every transaction OVER $1 (5% 10¢ fee)
Monthly Hosting Costs $1500.00 (monthly)
Staff to answer support emails and fix trouble tickets ($3000.00 /month)
iTunes is a great deal!
For the FT, with a dedicated readership willing to pay, it may be worth giving those things up in exchange for the ability to offer a true cross-platform experience.
LOL, a few year ago Apple says, "html5 Web Apps are really cool, guys make stuff."
Community, "no we want native apps. Web Apps suck. Come-on we'll pay for them!"
Apple, "OK, we built this awesome platform for native apps. Here is the bill."
Community, "Gready Apple. We are going to build web app instead!"
BTW the FT web app DOES work offline. It stores 1 day of news on the device itself. HTML5 is very capable, and frankly this is a smart move on their part rather than try to support a ton of different devices.
http://apps.ft.com/ftwebapp/faq.html#3
I highly doubt that Apple can provide that much value. The FT, the WSJ, the NYT, The Economist, etc. have built up massive reputations over many, many years. The target customer is self-identifying and knows how to find the product. Do you actually believe Apple can increase the target base by a factor of 10 for these publications?
Now, Apple might be helpful to smaller publications that are just getting started. In that case, Apple might deserve their 30%; but the 30% should be capped at some number, for example, $100K per year.
30% may make sense for common apps, whose value is in their functionality and not in the content they provide. With magazine subscriptions the app is developed once not for its own sake, but for the sake of the content being delivered. Most of the value is added by the journalists and the rest of the editorial team, and for them a 30% cut on the price of a subscription is a he'll of a lot, especially if they are barred from offering the subscription cheaper outside of the app store. Down vote me as much as you will, I think the stance adopted by the FT is great and other publications should join the resistance. Apple makes great products, but they didn't invent the press, and they're not doing anything to make it any freer.
The problem with having a web-based app is that people associate the web with free content. Apps are usually different, where people expect in-app purchases, subscriptions, etc.
Ermm.. it does keep offline content no problem. I'm using it as we speak
You're paying for the lead, you got the sub because they came to you from the app store. If you already get FT or send in one of those little cards, Apple does not get a cut. I don't see why people make such big deal out of this, if it wasn't for the app store, you wouldn't have a new sub, Apple should get paid for that....
You're paying for the lead, you got the sub because they came to you from the app store. If you already get FT or send in one of those little cards, Apple does not get a cut. I don't see why people make such big deal out of this, if it wasn't for the app store, you wouldn't have a new sub, Apple should get paid for that....
You're paying for the lead, you got the sub because they came to you from the app store. If you already get FT or send in one of those little cards, Apple does not get a cut. I don't see why people make such big deal out of this, if it wasn't for the app store, you wouldn't have a new sub, Apple should get paid for that....
You need to subscribe to more porn sites....
Exactly.
App is faster (if done right), can take offline. And there are more potential customers through the app store / itunes.
Would you want 100% fee of 1000 customers or 70% fee of 10000 customers?
Big fail.
There's no 3G signal on the London tube - so noone is going to be able to read it on their way to work.
Dumb move.