Apple Reverses Course On In-App Subscriptions

[AdrianWerner]

Sorry... wrong. They are WAY more than payment processing. iTunes and the new Newstand is a channel. It's easy access to millions of potential customers and that is worth the 30%.

No, it's not worth it. Especially for digital retailers. COmpanies like Netflix or Amazon make less than 30% out of each purchase. So you're bassicaly saying it that just giving access to customers is worth more than everything those companies are doing? And that they should sell for loss just because of how great of a platform Apple has created? Suuure..

Of course, this won't be a problem now that there's no rule to have the lowest price avaible on iOS. THis way even with in-app purchases those content providers can just rise the price up for iOS version enough to make a profit.

 

[Popeye206]

No, it's not worth it. Especially for digital retailers. COmpanies like Netflix or Amazon make less than 30% out of each purchase. So you're bassicaly saying it that just giving access to customers is worth more than everything those companies are doing? And that they should sell for loss just because of how great of a platform Apple has created? Suuure..

Of course, this won't be a problem now that there's no rule to have the lowest price avaible on iOS. THis way even with in-app purchases those content providers can just rise the price up for iOS version enough to make a profit.

Why do people think magazines make money off of subscriptions? Printed magazines don't make much if anything on subscriptions and they make their money on advertising.

 

[Jcoz]

No, it's not worth it. Especially for digital retailers. COmpanies like Netflix or Amazon make less than 30% out of each purchase. So you're bassicaly saying it that just giving access to customers is worth more than everything those companies are doing? And that they should sell for loss just because of how great of a platform Apple has created? Suuure..

Of course, this won't be a problem now that there's no rule to have the lowest price avaible on iOS. THis way even with in-app purchases those content providers can just rise the price up for iOS version enough to make a profit.

Amazon makes less than 30% on non-physical items? Historically? Try again.

 

[samcraig]

Why do people think magazines make money off of subscriptions? Printed magazines don't make much if anything on subscriptions and they make their money on advertising.

Magazine's ad rates are based on readership. So yes - the money comes from ad revenue - and that is why magazine (to a point) are willing to keep prices low to get an audience. It's a little chicken/egg

So the # of people a magazine has subscribing can illustrate are being exposed to their publication is relevant to the income generated by those ads.

 

[Fukui]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8J2 Safari/6533.18.5)

Common sense has prevailed.

It does happen from time to time.

I have a feeling steve jobs does this kind of thing just to see how far people will submit to being pushed in a certain direction….

 

[KnightWRX]

BTW, for anyone still arguing IAP/IAS is more than just a payment processor. From the Documentation :

http://developer.apple.com/library/...roduction.html#//apple_ref/doc/uid/TP40008267

Important: In App Purchase only collects payment.

You can try to see more value than there is, it remains that 30% is simply for processing payments. That's all the framework does. Anything else you can come up with is unrelated to IAP's 30%.

 

[NightFox]

BTW, for anyone still arguing IAP/IAS is more than just a payment processor. From the Documentation :

http://developer.apple.com/library/...roduction.html#//apple_ref/doc/uid/TP40008267



You can try to see more value than there is, it remains that 30% is simply for processing payments. That's all the framework does. Anything else you can come up with is unrelated to IAP's 30%.

Thank you!

 

[AdrianWerner]

Amazon makes less than 30% on non-physical items? Historically? Try again.

Actually thanks to the agency model Apple pushed through they do get 30% flat cut out of book's price. COnsider the costs of transfer and infrastructure and yes, they make less than 30%. So try again.

 

[AdrianWerner]

Why do people think magazines make money off of subscriptions? Printed magazines don't make much if anything on subscriptions and they make their money on advertising.

And where did I mention magazines at all?

Also..yes..magazines make their money mostly on advertising. Unfortunately thanks to Apple's policies magazines' ability to make money this way has been severely crippled.

 

[pkling]

Question

I got a question. So I have an idea for an application that would present the user of iphone/ipad the option to purchase highly personalized products. These products would need to be delivered via UPS or USPS. There is no way I can charge additional 30% and my margin will be tiny maybe 10%. So the question I have is do you think the iOS is a viable platform for my application?

 

[charlituna]

Why do people think magazines make money off of subscriptions? Printed magazines don't make much if anything on subscriptions and they make their money on advertising.

exactly. And they make more money off ads when they can give demo info about the folks seeing the ads.

THAT is the real beef with the whole In App rules. not the money. The money is just ego. It's the lack of info about the customers that is really pushing folks like Financial Times to leave the store.

 

[charlituna]

No, it's not worth it. Especially for digital retailers. COmpanies like Netflix or Amazon make less than 30% out of each purchase.

Really. Very interesting. Some hard core numbers from the source would help to drive this home. Particularly when you consider that on the internet anyone can say anything. Numbers from an impartial source to back up what you are saying always help to shut up those that would say that you are making things up to make your point.

I got a question. So I have an idea for an application that would present the user of iphone/ipad the option to purchase highly personalized products. These products would need to be delivered via UPS or USPS. There is no way I can charge additional 30% and my margin will be tiny maybe 10%. So the question I have is do you think the iOS is a viable platform for my application?

The real question is whether you think that you can generate enough sales to make the time and the developer sign up fees worth it. Particularly with a mere 10% margin.

My guess is no. That is if you can even get the app approved. Apple can be a bit not keen on apps that are just to sell things to folks when those things don't have an added benefit to the devices (like an ebook, movie, music track). You could invest in the $99 and the time to make the app and be rejected.

 

[weaponofgod]

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Agreed! It's seems like slot of people here are siding with the providers. Even thou the providers are the ones who are trying to get around paying. I think Apple, should tell providers that they can either pay 30% for in apps purchases or a one time fee for the life
of the app, if they choose to bill outside the app!

 

[KnightWRX]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_2_1 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8C148 Safari/6533.18.5)

Agreed! It's seems like slot of people here are siding with the providers. Even thou the providers are the ones who are trying to get around paying. I think Apple, should tell providers that they can either pay 30% for in apps purchases or a one time fee for the life
of the app, if they choose to bill outside the app!

They already do pay a one time fee for the life of the app. Actually, it's a yearly fee.

No one is trying to receive services for free.

 

[caspersoong]

I wonder if Apple earns anything at all if they do that.

 

[yoyolen]

Conflict w/ Sections 11.1 and 11.2?

How does the loosening in 11.14 square with the restrictions below in 11.1 and 11.2?


11.1
Apps that unlock or enable additional features or functionality with mechanisms other than the App Store will be rejected

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