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. This is the same digital subscription billing service that Apple recently launched with News Corp.’s “The Daily” app.
Subscriptions purchased from within the App Store will be sold using the same App Store billing system that has been used to buy billions of apps and In-App Purchases. Publishers set the price and length of subscription (weekly, monthly, bi-monthly, quarterly, bi-yearly or yearly). Then with one-click, customers pick the length of subscription and are automatically charged based on their chosen length of commitment (weekly, monthly, etc.). Customers can review and manage all of their subscriptions from their personal account page, including canceling the automatic renewal of a subscription. Apple processes all payments, keeping the same 30 percent share that it does today for other In-App Purchases.
“Our philosophy is simple—when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing,” said Steve Jobs, Apple’s CEO. “All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app. We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers.”
In related news, free viewing of The Daily has been pushed to February 28, leading some to believe that is when Apple will be dropping iOS 4.3.
Yeah, I thought it wasn't Apple's policy as they did not ask for SSN.
So what happens to the amount of the share when a new subscriber joins or rebuys??
That means customers have to ways to purchase subscriptions:
1) In-app purchase: In this case Apple gets 30% of revenue share and publisher gets 70%.
2) Web purchase: Apple gets 0% and publishers keep 100% of revenue.
Now the question is will iOS users use in-app purchase option or click on a link to open a browser to publishers' web sites for subscription purchase?
Probably only those that are lazy will do the apple way cuz it doesn't hurt them but for those of us that know this will probably try to help the DEV out more than apple
Example: "Developer A" makes a subscription based music streaming app for both iOS and Android. It costs $5/mon. Developer makes $2 while the other $3 goes to royalties, development, server maintenance, etc. Since Apple forbids providing a link or referring customer to your site to make payments, then Apple gets $1.50 leaving $0.50 for the developer. But on Android the Developer makes his entire $2.
But if he increases the price for the iOS app he has to increase the price for the Android App as per Apple's policy. Which then in turn prices his app too high to compete. Then Apple starts offering same service themselves and keeps 100% of the money.
The only logical choice for a Developer, is to either support Android only or to have two products under different names and different prices for both platforms. Only charging 30% more for the iOS version to recoup Apple tax.
Apple also expressly forbids charging different prices (unless the in-app purchase is cheaper) for the out of app purchases so devs can't up the cost 43% (1.43 * 0.70 = 1.001) to recoup the apple 30%. They also state that everything you can purchase outside the app also requires it be offered in app which makes me wonder about legacy issues and continuing subscriptions such as netflix (i.e. does apple deserve a cut of fee from someone who's been using netflix for 5 years just because they happened to use a netflix app?).
Apple seems to be implying the apps sell stuff because they're on the iPhone; of course, one could also argue that the iPhone sells because of the apps available. Chicken, meet egg; egg, meet chicken. Personally, I tend to side with the devs, without the apps, the iphone is just another smartphone with a high gloss finish.
Er.. I believe you have your numbers backwards. It's $1.50 for the Developer and $0.50 for Apple, not the other way around, if we follow your example.
And where are you getting this 'fact' that Apple will just offer the same service themselves and pocket 100% of the cash? They're not a news service nor do they offer any subscription-based games.