Oh, and perhaps you can point me to a (legal) way to purchase books for my Kindle where I can avoid Amazon's unnecessary markup? I like my options, after all.
Amazon's markup is not remotely the same thing as Apple skimming off Amazon. Do you think it would be okay if Amazon was able to take a 30% cut of anything taken in from iBooks? Presumably you do.
Regardless, yes, you can and I have bought books for my Kindle without going through Amazon. Anyone on Earth is free to sell books for the Kindle or Nook without Amazon or Barnes and Noble taking a cut. This is NOT the case for programs for iOS, and by extension now, for Amazon to let people buy/read books for its program on iOS.
Actually, Option C sounds worst from a business standpoint. Where are you going to take your wares to save that 30%?
Reaaaaaaally? So giving in to extortion is a better option than letting customers know what's going on, and letting them know how to find you? You just assume anyone is making so much money they can afford a 30% hit too. It's outrageous regardless, but not everything has greater than 30% profit
3% would be absolutely outrageous. 30% is just mind numbingly insane.
And what if you are in a business where the margins are less than 30% at the moment?
You have two options, either raise prices and thus transfer money from your customer's pockets into Apple's pockets or get out of this loss-making business.
Of course we all think this will all just get Apple a cut of the profits other companies make but at all likelihood this means higher prices for consumers for some products.
Most of that hit has to be passed on to consumers, which of course also had the side benefit for Apple that they can now sell the same products as Amazon or Barnes & Noble at lower costs, or can just pocket most of the difference.
If Apple has proved anything over the past 5 years, it's that they're exceptionally savvy businessmen.
No one is denying that. It doesn't make it right, moral, decent, or anything else though. It's extortion.
Yet as a publisher I have no "option" to sell my published e-book anywhere but the Kindle store if I want to make it available to Kindle users.
WRONG!
Why should I have to pay Amazon if I'm willing to host the download myself and pay the merchant costs?
You don't have to.
This is a moot point anyway because even if you did, that's STILL not the same thing as what Apple is doing.
This would be like walking in to a Target, buying a box of cereal, and then a Wal-Mart suit steps in behind you to take 30% of the money you just gave the Target guy.
Why should I pay Amazon 30% when I can effectively do the exact same thing for, say, 10%? Again, where is the outrage?
For two massive reasons, it isn't remotely the same thing.
Sure, Apple in this particular case is adding another middle-man to the equation, but the general sentiment in this thread seems to rage against the middle-man concept in general
Target, Amazon, and other stores are providing a real service, and you can buy their products elsewhere for the most part anyway. Apple is not. Apple is just coming along and grabbing 30% because they have a monopoly and feel like grabbing 30%.
2. Built in exposure to how many millions of users by just getting your app in market place???
Bogus. Very, very few programs are features. I'd assume those that are have to pay for it, but even if not, the exposure is minimal. In the case of large companies like Netflix or Amazon, the benefit is essentially zero. Even with other developers, they may prefer to sell their things other ways, but can't.
Run whatever ad campaign you want, let me know WHEN you get to the same level of exposure and what it costs you.
Being one of millions of products on offer isn't an ad campaign.
3. 30% is steep only if not kept relative.
What does THAT mean? 30% is really steep for providing nothing at all.
4. Ease of sale facilitated by clicking one button on a device you have with you nearly 24/7
That isn't a benefit from Apple. Any other company can build the same thing into their program or web site.
A flat 30% fee for getting your product sold and distributed is actually a very good thing.
The product is the book Amazon is selling. Amazon is the seller. Apple just thinks they can use their monopoly position to randomly swoop in and take money from Amazon.
1. It's not up to some companies like Kindle, who can't cut costs. They have agreements with the publishers to provide a certain percentage of the sale price. If they lose thirty percent, they end up with nothing for themselves. It's as simple as that.
2. Many services that will be affected by this are simply companion apps to existing services; like Netflix, Skype, Kindle, etc. They didn't need Apple's help for promotion because they were already well-known.
3. No. 30% for a billing service (and it is ONLY a billing service) is absolutely astronomical.
^ That.
I wonder if more will follow this:
http://www.engadget.com/2011/02/15/rhapsody-wont-bow-to-apples-subscription-policy-issues-statem/
Rhapsody won't bow to Apple's subscription policy, issues statement
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Hopefully. Sony's issued a statement about it too. I bet companies left and right are just sitting there dumbfounded by this move. Maybe, MAYBE it'll wake people up out of the idea that Apple is this benevolent company, at least.