That is crazy, I am glad I saw these posts, I had no idea at all, at least now have some warning. I wont start paying for something that I get free on my laptop, that just isnt right, was the whole point I got the ipad, it wasnt to give apple yet more money, I think they got enough from me lol.
This is one of the reasons I love this site, you find out a lot of things in advance, mostly for me because this is the only ipad site I am part of lol
Last edited by David79; 02-18-2011 at 10:38 AM. Reason: added
Ipod 32 GB
Not everyone has to agree with your point of views, but at some point they need to accept Them!
Good things to know.
Thanks for the heads up,
Have to say this is possibly one of the most badly thought out things from apple in a long time.
I have a print subscription with the Economist, and as part of that I get free digital content via the economist app. Are apple seriously expecting 30% of the print subscription revenue simply for the Economist to provide me with digital content (they provide a digital only subscription too) - I can't see that happening.
If apple insists on this course of action, I could see content providers leaving in droves and customers following in a similar fashion..... Considerably more serious than lacking flash I think!
Last edited by Prasius; 02-18-2011 at 02:26 PM.
First off, just because the feds are looking at a company, means very little. They do it on a regular basis when someone complains about anything. It is only making the news because it is Apple, and Apple is news. Steve Jobs sneezes and there is front page commentary. The experts have said that there is little chance of anti-trust regulations being in play here because it does not meet the criteria.
Second, this means nothing to the consumers, because it will not affect pricing of any products. Music is already priced to where Apple has the bulk share of the market. If it were not for Apple, everyone would probably be paying $1.99/track from all sources. That is what has Rhapsody and others upset, because they cannot compete with the price level Apple has set. The book and magazine sellers will determine if they want to sell on iTunes. The only difference is that if you buy from another source than iTunes, you will do it on your full computer. What is the big deal there?
Right now, Apple is using their market power to get content at a lower price than if you bought it through traditional retailers. They are doing what Wal-Mart, Amazon, etc. has failed to do. Even magazine subscriptions will be where you are able to renew them from the original vendor. They just have to pay Apple if Apple does the processing, and you cannot go to the vendors sales site directly from the app. The likely scenario is that you will sign up for a free app or an app that is part of an inititial subscription which Apple may get 30% of. After the initial subscription, when it is time to renew, you would get an e-mail saying that you can renew by going to [xxx] website. A subscription as part of a print subscription, will not be affected by Apple's policy, nor will any other purchase that is not made through iTunes. It is the same thing that happens with Amazon if you buy something through Amazon from one of their affiliate vendors. Amazon takes a cut of the profits for processing the payment and providing the site information. Surely, you do not expect them to do that for free? Remember that every app that is posted on iTunes has to go through a review process, then it costs Apple time and money to post the app, provide downloading capability, and reviews. It is not cheap, and they do not make any money off the free apps.
Apple gets a lot of attention because they are so good at what they do. The catch is, what they are doing here, is nothing new. It is a correction on a problem that was going to hurt their finances in the future, so they fixed a leaky hole in the boat.
"Apple does require that if a publisher chooses to sell a digital subscription separately outside of the app, that same subscription offer must be made available, at the same price or less, to customers who wish to subscribe from within the app,"
This probably doesn't affect Amazon so much because I'm not sure one time purchases of ebooks can be considered subscriptions. However, the reports I have read state that Amazon must offer in-app purchasing to the Kindle app, so who knows where that one is going. If Amazon is required to offer in app purchasing I see that as a problem.
This does however affect services like Netflix and Rhapsody which according to the above quote have to offer subscription through the app and thus pay 30% to Apple. If this is a one-time cost then that is fine but I have not seen the clarification stated by Apple anywhere.
As far as Apple approving and hosting the apps themselves, that is a self imposed cost. I'm not going to shed any tears for Apple because they require all applications to go through the App Store. Looking at their last few quarterly profit numbers I feel pretty safe in saying the application approval process isn't hurting the bottom line too much.
Last edited by DaveSt; 02-18-2011 at 05:48 PM.
Isn't that a bit excessive for being a content host?
Or is this 30% about the industry standard?
I have no problem with Apple charging for real subscription based content such as magazines made for iOS. I only have a problem if Apple requires Amazon to make their ebooks available to in-app purchasing. The rest of what Apple is charging seems to be reasonable assuming they don't try to take a cut from monthly services like Netflix.
I stumbled across a VERY interesting analysis of this issue that puts things in a little different light. If you read all the way to the end, it seems like Amazon might still come out the winner here (for subscriptions, NOT ebook sales) even if they are forced to sell within the iTunes framework. This article does a much better job of explaining the fee structure than I ever could, and some of the numbers in my previous post are actually a little low. I didn't know Amazon charged so much for non US and UK delivery for example. Anyhow, the following link is worth a read.
AppleInsider | Inside subscription content: Apple iPad vs Google One Pass vs Amazon Kindle
Last edited by DaveSt; 02-18-2011 at 07:29 PM.