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balamw

Moderator emeritus
Aug 16, 2005
19,366
979
New England
-In-app will be required, but cost can be adjusted (to make up the 30%).

No it can't. As Daveoc64 and I have said earlier in the thread. Apple reportedly requires in-app purchases to be at the same price (or lower) than the best price available by any other means.

B
 

McGiord

macrumors 601
Oct 5, 2003
4,558
290
Dark Castle
Netflix could do a win-win: only for new subscriber that sign in through an Apple iOS device they can follow apple's model, if the numbers of the 'free' advertisement from apple make sense for them
 

mrpither

macrumors regular
Aug 21, 2007
104
8
100% right. I seriously doubt if Apple hadn't made such a success of the app store they wouldn't be as popular as they are today. I doubt many people would even own a smart phone if it wasn't for the apps. I know many people who don't use email, web browsing, calendars, visual voice mail. Instead they use angry birds, cut the rope, and other great apps. That's what brings people to the iOS platform in my view.
good thing apple has the exclusive on all those OH WAIT THEY DON'T...
 

marksman

macrumors 603
Jun 4, 2007
5,764
5
I believe Apple said developers with apps already in the App Store have until June to comply with the new rules...no news here.

This.


Aren't these rules supposed to take effect in June?

Apple will have a massive lawsuit on their hands if it doesn't pull a 180 on these rules real quick. I'm a big Apple fan, but these companies already have to pay so much in royalties that they will go out of business. That could be easily argued in court too. The main problem is that Apple requires the prices be the same inside their store as outside. That's price fixing and IMO, a big no-no.

Edit: and this story just disappeared off the front page as I posted, lol.


So as their lawyer in court, you would argue they can't pay Apple for their services, because they already have to pay other people for stuff, so there is not enough left for Apple? You think that argument is going to go over well? Why not take the people they are paying royalties to court?
 
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benji888

macrumors 68000
Sep 27, 2006
1,889
410
United States
Apple already said that the new policy does not apply to SAS applications (Software As a Service) like Netflix.

The issue is that the definition of SAS is very vague.

How could this apply to Netflix? The iOS app is a free option for people who already have a Netflix account! ...unless Apple wants to quash competition...but Apple rents individual movies, unlike Netflix. What exactly is the definition of a subscription, I mean, don't they really mean periodicals? Or does one have a subscription if they have cable TV?

...in any case, this is where apps like Netflix are different from Nook or Kindle. Netflix iOS app is free access to something already paid for, comparable to a cable TV service iOS app giving access to your cable service already paid for use at home. Ebook apps are for purchasing/downloading individual books. Likewise Newspaper/magazine subscriptions are for "downloading" periodicals not already paid for to receive another way.
 

pmz

macrumors 68000
Nov 18, 2009
1,949
0
NJ
Aren't these rules supposed to take effect in June?

Apple will have a massive lawsuit on their hands if it doesn't pull a 180 on these rules real quick. I'm a big Apple fan, but these companies already have to pay so much in royalties that they will go out of business. That could be easily argued in court too. The main problem is that Apple requires the prices be the same inside their store as outside. That's price fixing and IMO, a big no-no.

Edit: and this story just disappeared off the front page as I posted, lol.

What lawsuit? Apple can do whatever it wants. There doesn't HAVE to be a Netflix App for iPhone..

..but there will be.
 

agent_zero

macrumors newbie
Sep 17, 2003
8
0
There is no real alternative for users of Netflix and Hulu, whereas there are alternatives to using iOS products. NF and Hulu know they have the leverage here, its just a matter of time before Apple gives in.

Apple will try to save face, I bet, and cast a wide net as what the consider SAS thereby allowing them to stay.

You are probably right...they do already have the leverage, especially with the recent market share data from Netflix. Your last point is particularly apt...it will probably come down to the definition of SAS ("It depends on your definition of what the word IS, is.").
 

travishill

macrumors regular
Jan 6, 2004
127
0
No it can't. As Daveoc64 and I have said earlier in the thread. Apple reportedly requires in-app purchases to be at the same price (or lower) than the best price available by any other means.

Yes, I was commenting that I think Apple will change in one of those ways- eventually. I'm aware of how the rules are currently worded :)
 

sesnir

macrumors 6502
Sep 21, 2008
366
287
...in any case, this is where apps like Netflix are different from Nook or Kindle. Netflix iOS app is free access to something already paid for, comparable to a cable TV service iOS app giving access to your cable service already paid for use at home. Ebook apps are for purchasing/downloading individual books. Likewise Newspaper/magazine subscriptions are for "downloading" periodicals not already paid for to receive another way.

You're absolutely right. Time Warner Cable just released an app that lets you watch live TV on your iPad as long as you subscribe to both cable tv and cable internet through TWC. Is Apple going to start demanding a 30% cut of my cable bill? No... and Netflix is the same thing, imo.

I understand Apple's point of view on the new policy - it's to keep devs from getting around that 30% cut Apple earns. But it should apply only to content (ebook purchases, iPad magazine subscriptions, etc) and not SAS that's already been paid for through a netflix or cable subscription.
 

SteveW928

macrumors 68000
May 28, 2010
1,834
1,380
Victoria, B.C. Canada
A couple things as far as I can see...

1) Wouldn't it be pretty easy to just remove the 'store' link from the apps (like Kindle app)? Most people who have been buying Kindle books probably do it directly at the web site anyway. All that button would be doing, would be linking to the web site, as you don't buy the books through the app anyway.

2) Same for Netflix... the people could create their account before using the app, and then the app would just have a 'log-in'.

So, neither app would really have any issues, even if Apple did really push this. However I'm hoping Apple is smart enough not to push it. I think if Netflix and/or Amazon pulled the apps, the popularity of the iOS devices would take a pretty big ding.

Since there is really nothing else, I suppose I'd have to stay for now, but I'd be horribly miffed at Apple for forcing me to carry both a iPad and a Kindle! I might seriously consider the competing tablets when they come along if that were the case, as carrying multiple devices kind of defeats the purpose.
 

NightFox

macrumors 68040
May 10, 2005
3,240
4,487
Shropshire, UK
One thing I'm not clear about with this whole subscription model - where an app has in-app purchases via iTunes, am I right in understanding that these are also hosted by Apple (part of their justification for the 30% cut)? If so, doesn't that mean that Apple would have to host a mirror of the entire global Kindle book collection?
 

jb1280

macrumors 6502a
Jan 13, 2009
869
255
While it's true that Apple has given companies several more months to comply, I think an important take away from this app updates is that both Amazon and Netflix have a rather optimistic view of being able to settle this issue with Apple amicably. If there were no further app updates, that would spell problems in the future.
 

qtx43

macrumors 6502a
Aug 4, 2007
659
16
Apple's has gotten a lot of grief for this policy, but I have some sympathy for the difficulty of their position. How do they discourage rip-off apps, such as the ones for little kids who buy (in-app) some cute/colorful/shiny object in a game, but still allow serious businesses like Netflix to continue? I'm not smart enough to define the bright line which distinguishes them, and all gray areas in between.
 

alent1234

macrumors 603
Jun 19, 2009
5,688
170
apple wouldn't dare tick off netflix. how much would the apple TV sell if there was no netflix service on it?
 

leesmith2

macrumors member
Aug 25, 2009
73
16
Amazon and Netflix are not "publishers." Random House, Sony, Disney, etc.... THOSE are publishers.
 

NinjaHERO

macrumors 6502a
Aug 29, 2008
972
1,253
U S of A
I don't like where Apple is heading with this, but I guess I can understand where they are coming from. It will give an Itunes streaming service and their Ibooks apps a huge leg up. I assume Kindle and Netflix will just remove any in app purchase ability. That seems like it would circumvent the problem. I don't mind going to Amazon.com to make a purchase.
 

tatonka

macrumors 6502
Aug 25, 2009
495
40
I believe Apple said developers with apps already in the App Store have until June to comply with the new rules...no news here.

on the contrary .. what was it the Sony reader or something that did not get accepted for exactly that reason?
You can also interpret Apples announcement as. If you want anything approved from now on, you better follow the guidelines .. everthing previously accepted is good until June/July, after that it will be removed.

Why would te Kindle be OK and the Sony reader not?

T.

PS: Still hoping Apple will change that rule eventually back again.
 

bbeagle

macrumors 68040
Oct 19, 2010
3,541
2,981
Buffalo, NY
The only apps that need to comply with this 'rule' are apps that are selling things WITHIN their application.

The netflix app is NOT selling anything INSIDE it's application. Therefore, why is anyone even discussing this with regards to Netflix?
 

err404

macrumors 68030
Mar 4, 2007
2,525
623
Why would the Kindle be OK and the Sony reader not?

Sony attempted to perform direct In-App purchases through their own store. Kindle, on the other hand, redirects users to a web site to preform purchases.

It has been clear that the method of purchasing attempted by Sony was not allowed. IIRC a previous version of Kindle was also rejected for this reason.

The issue is that the new IAP rules would also prevent the Kindle website redirection method. This applies for all new apps and will take effect in July for existing apps. This prevents Sony from resubmitting the App w/o giving Apple the 30% cut.

Another issue is that the new subscription rules. They aren't very clear and depend upon an interpretation of what is meant by SAS (Software As a Service). For example Netflix is apparently exempt despite being a subscription service.
 

err404

macrumors 68030
Mar 4, 2007
2,525
623
The only apps that need to comply with this 'rule' are apps that are selling things WITHIN their application.

The netflix app is NOT selling anything INSIDE it's application. Therefore, why is anyone even discussing this with regards to Netflix?

The thread is talking about two issues. In App Purchases and Subscriptions.

Netflix requires a subscription to function. Apple has ruled that if a subscription is required, it must be offered from within the app with a 30% cut taken by Apple. However Netflix is said to be exempt due to it being SAS.

BTW - The current Kindle app does not sell anything either; the Amazon website does. This is a subtle but important distinction that previously allowed Amazon to avoid paying Apple. The new rule forces the purchase inside the App therefore giving Apple a cut.
 

qtx43

macrumors 6502a
Aug 4, 2007
659
16
The only apps that need to comply with this 'rule' are apps that are selling things WITHIN their application.

The netflix app is NOT selling anything INSIDE it's application. Therefore, why is anyone even discussing this with regards to Netflix?
It's true they don't currently offer anything within their app, therefore they are not in compliance and are in danger of being thrown out of the app store (by some interpretations of the policy). They would be required to make the same subscription offer (or cheaper) in-app, and in addition hand over 30% of that same price to Apple. Unless I'm misunderstanding, which is always possible.
 

supmango

macrumors 6502
Feb 17, 2008
413
0
No it can't. As Daveoc64 and I have said earlier in the thread. Apple reportedly requires in-app purchases to be at the same price (or lower) than the best price available by any other means.

B

Netflix will just have to increase prices 30% across the board, both in-app purchase and through their other channels. Their quality of service needs a boost anyway. Based on performance issues I was getting there for a while, I think the demand for the services outpaced their resources. I suspect they still need to build up some more infrastructure.

I typically understand the moves Apple makes, but with regard to this specific policy it seems like they are being exceptionally greedy.
 

bbeagle

macrumors 68040
Oct 19, 2010
3,541
2,981
Buffalo, NY
I typically understand the moves Apple makes, but with regard to this specific policy it seems like they are being exceptionally greedy.

I don't agree with that assessment.

My understanding is that Apple doesn't want an App Store where they are spending hosting dollars on FREE applications, and not making any money at all.

Imagine that instead of charging $4 for 'Angry Birds', it's FREE in the App Store, but only a demo. An update to make it the full version could be bought inside the app through Rovio for $4. Apple is getting NOTHING for this.

Apple wants to avoid these type of issues. The App Store would go away completely if this would be allowed to occur, since Apple would lose money on it.

Therefore, I can completely see Apple's point of view here. However, something like a Netflix subscription is a different thing completely. To say that Apple would even think about taking 30% of a Netflix subscription is ludicrous!
 

irun5k

macrumors 6502
Jan 14, 2005
379
0
You're absolutely right. Time Warner Cable just released an app that lets you watch live TV on your iPad as long as you subscribe to both cable tv and cable internet through TWC. Is Apple going to start demanding a 30% cut of my cable bill? No... and Netflix is the same thing, imo.

Yeah, most of the apps like this are free apps that are basically a courtesy for someone who is already a customer of a given business, like Netflix, TWC, etc. I don't see how Apple can start making demands in a scenario like that.

There is no way on earth that I'd be paying for Netflix if the only place I could use it is on an iOS device. My primary uses are on my computer and in my home entertainment center- the iOS support is just a "nice to have." It sounds like Apple is making a blanket assertion that everyone who installs Netflix on their iOS device is only a paying Netflix customer because of the App Store. That seems pretty ludicrous to me. People become Netflix customers because of all the advertising they do, word of mouth, etc. I doubt that anyone ever hears about Netflix for the very first time by browsing the App Store.
 
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