Apple revealed the details of its previously announced subscription feature for applications on the iPad and iPhone today, and therea4ぎa4г been a pretty loud backlash.
Whata4ぎa4г the problem At first glance, the rules seem fair enough. Apple takes a 30 percent cut of subscriptions sold through the App Store, but publishers are free to offer subscriptions elsewhere, for example through their website. (Therea4ぎa4г something kind of hilarious about the fact that Apple says explicitly, a4ぎASince Apple is not involved in these transactions, there is no revenue sharing or exchange of customer information with Apple.a4ぎ Uh, thanks)
But herea4ぎa4г the catch: If developers offer subscriptions elsewhere, they have to offer them inside their iPhone and iPad apps too, and at the same price. Developers are also forbidden from including links inside their app to purchase content or subscriptions outside the app. That even affects products like Amazona4ぎa4г Kindle app, which includes a link to buy books for Kindle.
TechCruncha4ぎa4г MG Siegler does a good job of laying out Applea4ぎa4г likely rationale. The company has created what is likely to be the most user-friendly subscription service anywhere. In order to make it work, however, publishers cana4ぎa4д just increase the prices within their apps to incorporate Applea4ぎa4г 30 percent cut while leaving subscriptions lower elsewhere. Otherwise, users will be torn between the superior experience and the lower price.
That may be true, but ita4ぎa4г not sitting well with everyone. Rhapsody, for example, says that its subscription model wona4ぎa4д work if Apple takes a 30 percent cut, and that it will be a4ぎAcollaborating with our market peers in determining an appropriate legal and business response to this latest development.a4ぎ At the Think Vitamin a4ぎAweb practionera4ぎa4г bloga4ぎ, Ryan Carson argues that this should be the spur developers need to finally embrace mobile websites using technology like HTML5, rather than building native apps that are subject to Applea4ぎa4г rules.
Of course, the App Store has faced to developer criticism from the beginning, yet the number of apps keeps growing. While Ia4ぎa4ёe seen a few startups who focus exclusively on mobile Web or Android, theya4ぎa4вe pretty rare.
So Ia4ぎa4m very curious to see to most developers will continue to play ball with Apple, or if this will be the restriction that pushes them over the edge. My guess: As is often the case, this will come down to money. If companies can still make a profit through Applea4ぎa4г new model, most of them will learn to live with it.
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Companies: Apple, Rhapsody
Companies: Apple, Rhapsody
Anthony is a senior editor at VentureBeat, as well as its reporter on media, advertising, and social networks. Before joining the site in 2008, Anthony worked at the Hollister Free Lance, where he won awards from the California Newspaper Publishers Association for breaking news coverage and writing. He attended Stanford University and now lives in San Francisco. Reach him at anthony@venturebeat.com. (All story pitches should also be sent to tips@venturebeat.com) You can also follow Anthony on Twitter.
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