Apple Debuts App Store Subscriptions

[karsten]

And you know that the margins are thin because you are a big time magazine executive?

The 30 percent take has always been there, it's just gonna be enforced now.
Apple can't give these people a free ride!

are you? i doubt it. the fact that no other magazine even mentioned the existence of this and apple didnt have a single one on board that has a print edition speaks volumes.

 

[yg17]

What people don't understand is Apple sells content too. They are in direct comeptition with all the people people are worried about loosing.

Apple is protecting their own interests. If they don't then Apple will just have to get out of the content business entirely, themselves.

They don't have a choice given how these other companies have chosen to play it. It would be absurd to craft the sword your competitor will use to stab you to death. Apple is protecting themselves and their business.

Apple, rightfully so, believes most of those companies will have to come to the table because the number of customers Apple represents. At the same time they get to protect themselves as content providers.

They are not going to back off on this. They gave it some time to see how things will settle down, and the writing on the wall was clear... these other businesses were going to leverage Apple's own innovations to compete with them in the content space. Apple is now saying, there is a price to pay for that...

It seems entirely reasonable.

So if Dominos makes an app where you can order and pay for a pizza, Apple deserves a cut too? Because that's what these new rules would mean. And Apple isn't in the pizza delivery business.

 

[rhett7660]

Snip..

When I buy a book on the Kindle app on an iOS device, NOTHING in that above statement changes. What part does Apple play in that transaction? None. They don't host the book on their server, they don't use a single byte of bandwidth to get that book to the iOS device. What the hell did Apple do in that transaction to deserve a 30% cut? Nothing.

Well I don't know if Apple has played NO part in the deal. I mean they are now providing the means for "X" amount of devices to get content from this seller or any seller. May not seem big but they do have some part of this deal.

If I were Amazon, I'd yank the Kindle app off the App Store, stop selling Apple products on Amazon, and make sure people know why with a message in big, bold letters on amazon.com that even Helen Keller would be able to see.

Some how this doesn't surprise me, especially coming from you. But hey to each their own.

 

[rhett7660]

So if Dominos makes an app where you can order and pay for a pizza, Apple deserves a cut too? Because that's what these new rules would mean. And Apple isn't in the pizza delivery business.

Maybe if you subscribe to getting one or two pizzas month for an entire year?

 

[Centient]

So if Dominos makes an app where you can order and pay for a pizza, Apple deserves a cut too? Because that's what these new rules would mean. And Apple isn't in the pizza delivery business.

Only if it's deep dish.

 

[yg17]

Because microsoft does not control the experience or the content used on devices that use its OS. For one reason they don't make the devices that use it.

Apple both makes the hardware and the software. They also control what can run on it. People pay for this process and for apple to be the gatekeeper. A lot of people are fine with it.

iPhone is not riddled with virii and hackers like Windows is... So there is a real value that Apple is providing to customers. Also they are providing several large benefits to software developers. Nobody is being forced to participate on either side. If you don't like that level of control as a consumer don't buy an IOS device. However Apple has been massively successful with that level of control. This is not some kind of new twist, Apple has always totally controlled the software going on their devices. It is one of the key reasons why they are so successful.

So what if they make the hardware and software? Apple doesn't get a cut of my Netflix subscription because of my ability to watch instantly on OSX. They don't get a cut of my Kindle books because of my ability to read them on OSX. Why should they get a cut of my Netflix and Kindle purchases because I can use them on iOS?

 

[cmaier]

For all the Pages of Lies I must Add This One Thing for All that are mangling up this whole Subscription based Article Apple Presented Yesterday.

"NETFLIX & Others Like It "ARE NOT INCLUDED IN THIS"

ONLY PRINT TYPE MEDIA To DIGITAL OFFERINGS ARE THE ONES THAT HAVE TO IMPOSE THIS SUBSCRIPTION BASED ADDITION, NO ONE ELSE

QUOTE]

This is completely wrong: Apple themselves say this:

"CUPERTINO, California—February 15, 2011—Apple® today announced a new subscription service available to all publishers of content-based apps on the App Store℠, including magazines, newspapers, video, music, etc"

http://www.apple.com/pr/library/2011/02/15appstore.html

But he must be right - it's in BOLD!

So if Dominos makes an app where you can order and pay for a pizza, Apple deserves a cut too? Because that's what these new rules would mean. And Apple isn't in the pizza delivery business.

No. Pizza is not digital content. So apple is not claiming it gets a 30% cut of tangible goods sales.

 

[RollTide1017]

I guess this means ESPN The Magizine app will be going away. I doubt ESPN is willing to give Apple 30% for every ESPN Insider that subscribes through the app.

If Kindle, Nook, Nook for Kids, Netflix, Zinio and many more apps end up leaving iOS then I guess I'll have to look at Android or WP7. I'll probably end up selling my iPad as well and looking at Android tablets. If I can't use those apps on Apple devices then those devices are pretty much worthless too me. Bad move by Apple, they have over stepped there bounds IMO.

Imagine the outrage if Microsoft did this with Windows and took a 30% cut from everything developed and purchased through a Windows Application on a PC. If this was MS, the fires of the world would be raining down on them today yet, we have some people here actually backing Apple on this... crazy.

 

[manu chao]

Would a service like Dropbox who is free for basic version but who offers an upgrade of 50 gig per month and cost somewhere close to 9$ (I think) per month or a yearly payement be subject to Apples new rules ?

Does Skype qualify for these new rules (having a monthly or yearly payment for Skype's unlimited US-Canada calling)

If so ... OMG I hope these apps dont leave the Store ......

Can anyone tell me if the rules apply to them as well ?

"Section 11.2: Apps utilizing a system other than the In App Purchase API (IAP) to purchase content, functionality, or services in an app will be rejected."
Does Skype utilizes a system to purchase functionality or services outside of IAP process? Certainly, so either it will be pulled or it will have to switch to offer in-app purchasing. This either means a 43% increase of all prices across the board, Skype taking a 30% loss, or Skype quitting voluntarily. Skype cannot offer the same Skype Credit cheaper outside the app, Apple forbids that.

 

[aduteau]

wow googles just annonce their subscription as well ... 10% insted of the 30% from Apple plus they give the users info, insted of Apple not wanting to share it with the publishers.

http://online.wsj.com/article/SB100...48142926860706.html?mod=WSJ_hp_LEFTTopStories

I guess we know where publishers are going to flock to now !!!
With Android getting more and more momentum ... and this kind of deal for subscriptions ... I see in sinking ship with publishers on Apples Side ...

 

[rhett7660]

Apple today announced the debut of subscriptions for the App Store, opening the door for developers offering a wide range of content, including magazines, newspapers, music, and video, to use the same recurring billing mechanism introduced earlier this month with The Daily.Answering questions about whether content may also be offered outside of the in-app purchasing mechanism, Apple CEO notes that publishers are free to offer content outside of the application but that the same or better offer must also be available within the application.Apple of course expects that many customers will want to utilize the in-app mechanism for ease of activation and simple direct billing to their iTunes Store accounts. Content providers will of course prefer that customers use external subscriptions so as to not have to send 30% of their revenue to Apple.

The announcement offers no word on the release of iOS 4.3, which developers have indicated contains the API hooks required for in-app subscriptions.

Article Link: Apple Debuts App Store Subscriptions

This still sounds like it is just for subscriptions only.. Not so much with purchasing items.

 

[AdrianWerner]

I don't think people should be panicking just yet that Netflix and Amazon will be raising their prices 30% to comply with the new terms for content subscriptions.

In both of those services the money made on iOS devices are pretty small compared to others, so I don't see them raising the prices of services on all avaibl hardwire just to satisfy Apple's greed. Either they will find a work around or if it proves impossible they will just move out of iOS.
Apple intends to keep iOS a closed system and to exploit it against competition. With the net developing as it is, maybe it makes sense to move all services into browsers and just create iOS optimised versions of them. This would allow all content providers to completely bypass Appstore and never again be forced to pay anything or or comply with Apple's demands.

 

[Rodimus Prime]

As an IT Manager why would you let these products with the exception of Dropbox on you network anyways?

on that list that you pick on him on the only one that gets me as odd for letting on the network would be the kindle. The other stuff I could understand allowing.

The steaming music makes hte employees happy because they have something to listen to at work and having nothing to do with security so a not an issue.

Drop box is handy and I could easily see it used.

Time to sit back and watch the law suits fly and I could easily see Apple getting busted for anti trust.