I don't think anyone argues Apple should and has a right to profit off the app store. But in their sales pitch of IOS devices, right smack in their television ads, were "free" apps. Some of those apps they teased the buying public with are now the very apps they are alienating.
This particular app circumvents ads by still giving money to the content creators to keep them alive. Ad revenue pays for the sites you read, just like this one. If everyone blocked the ads on Mac Rumors and it's sister sites, they most likely wouldn't be free or here at all. This is far different from a subscription music service or Netflix.
Someone mentioned the poor showing of the Verizon iPhone launch. While I think the majority of people didn't want to buy a device near it's end of life, there was lots of discussion of forums from people who cited Apple's latest escapades as a reason. It does give merit that the public isn't happy and people are concerned they'd have to give up content they currently use for an iPhone. Someone who has invested heavily in Kindle books might be nervous. I still wonder if removing purchase options from the app would circumvent Apple. If you're a kindle user, you'll just go to Amazon.com anyway. It's actually easier to browse books on the full web than in the app unless you know what you want. Browsing iBooks is dreadful. And the selection is poor.
I still say this: Apple needs to grow a pair and say, "As our business model has evolved and changed, we now are in direct compeition with some of our partners. As a result, we will no longer host apps that compete with existing business such as books or music. We wish these partners well." Instead of blackmailing them out of the app store. I think that is more the issue than wanting paid.
Right now the App Store pays for its own existence through that 30% cut. What Apple is doing here is trying to prevent a loophole as Atheistpaladin points out. Companies monetizing Apple's distribution platform without sharing some of the cost of distribution.
That isn't to say this isn't a bad move. But it points out the problems of a one-size-fits-all distribution method for applications and services.
@Originally Posted by fishmoose
"Yeah it's a novel concept that Apple should get paid for selling subscriptions for publishers."''
Yes and no. Apple wants the content to make their devices an attractive purchase. A content device is not good without content and magazines, books, newspapers, video, etc. are the bread and butter content that makes tablets more enticing. Otherwise an iPod touch would be just fine. That content will sell iPads, where they make their real money. If 500 magazines are available on Android because the publisher only pays a reasonable 10% fee, and 20 are left on the iPad, might make you rethink which device you buy. 10% is a generous cut for that type of product. It's more than brick and mortar stores make selling magazines (which is 5% or less in most cases). This is where you can't have 1 size fits all. Most people don't realize how the retail end works. Brick and mortar stores make no money off newspapers, its a convenience for your customer. What they spend for an employee to dust the newspaper rack once a week is more than what they make in a month selling the newspaper. Most stores discount magazines which wipes the penny profit to a true penny profit. It's a convenience. And magazine and newspaper publishers have been in financial trouble for a decade. Just like a newspaper brings a customer to a convenience store when they don't need gas, it brings them to a tablet every day to read it if they subscribe. While they're there, they might drop a few bucks on something else. Considering most publications advertise things in the app store, it still will drive traffic back to apple at the end of the day. "Hey an article about that new Lady KaKa cd... ooh, if i touch her name it opens iTunes for me to buy it." This is also a very untested market. Who knows how many people will subscribe to digital magazines? The 40% and up profit on the iPad is far more than they'll ever make off the lifetime app purchases of the user in most cases. I was going to buy the iPad 2.... now I'm going for an android tablet. I refuse to invest further in IOS which already limits my content choices. (95% of the apps in the app store are crap, some literally like fart apps and bic lighter apps.)
