Friday, 10 June 2011 20:33
Apple Quietly Changes In-App Subscription Requirements For iOS Apps
Apple recently changed a rule that previously prevented publishers from charging more for content via the iTunes store than they do outside of Apple’s store. The rule before the change, which was apparently accepted by a number of publishers, stated that all in-app subscriptions, and purchases could only be available for purchase outside of the iTunes store and outside of iOS applications for the same price inside the store. This was an attempt by Apple to assure that they would receive their 30% cut that all publishers have to agree to when selling content through Apple. The change to the rule allows publishers and content providers to market and sell their products outside of the App Store for any price they see fit, and not have to throw Apple 30% of the revenue for those purchases made outside by the App Store. Obviously, this won’t cause publishers and others to stop offering subscriptions and content for purchase through iTunes. The exposure that iTunes provides is too good, but it does offer them the freedom they are used to when marketing and selling. However one stipulation still remains. Publishers and content providers may not put links in their applications that direct users of the application to sales outside of the iTunes restrictions. Still this bodes well for publishers seeking to maximize their earning potential. The quick turnaround on Apple’s part seems partially in response to Google’s “One Pass” proposal which lets publishers set up their subscription pay wall, while Google would take a much smaller percentage than Apple off the top, rumored to be around 10%. Also, as the decision could be a response to the possibility of HTML5 web apps, taking the place of dedicated iOS apps for companies. This is what the Financial Times did earlier this week, allowing them to completely skip over Apple’s 30% cut. Giving the consumers more choices on where to get their content is never a bad thing. Still, it will be interesting to see if publishers are quick to take advantage of the change, or more importantly if they do decide to take advantage will consumers venture outside the convenience of iTunes to get a better deal. Read more Authors:
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