| BY THE GOOGLE CHIC
Extra, extra read all about it, Apple wants to take 30% of your revenue!
So, Apple introduces an in app subscription service, but there’s a hefty 30% fee that goes along with it. The worse part is that Apple is dictating that the cost for the in app subscription must be the same or less as compared to a subscription purchased outside of the app.
Outraged yet? Rhapsody is! Jon Irwin called the plan “economically untenable”. “Our philosophy is simple too — an Apple-imposed arrangement that requires us to pay 30 percent of our revenue to Apple, in addition to content fees that we pay to the music labels, publishers and artists, is economically untenable. The bottom line is we would not be able to offer our service through the iTunes store if subjected to Apple’s 30 percent monthly fee vs. a typical 2.5 percent credit card fee.”
Hmm, does this mean that developers/companies that do not want to pay 30% will slowly pull their apps? If that happens, it sure sounds like we’ll have more people join the Android bandwagon 🙂
| BY THE APPLE GIRL
It’s another brilliant bet by Apple. Focus on the consumer and make a billion.
The one click subscription is Apple’s new in app subscription model that will allow developers to charge for additional content, such as new levels in a game or a magazine subscription renewal, all from within an App without having to go to the App Store.
One click purchases means ease of purchase for the consumer and developers (and Apple) make money from it. Apple knows that millions of users will at least do one in App purchase and Apple wants a share too. Of course, the App companies and developers are mad about it!!Why shouldn’t they be?
In order to ensure that this model succeeds (read: discourage developers from avoiding in app subscriptions and using out of app subscriptions) Apple has mandated that companies which offer subscriptions out of App must provide an in app subscription for same or better price.
So as Apple puts it “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”
And the latest news is that the in app subscription plan has sparked anti trust inquiries. Let’s see how this one plays out. What do you think? An outstanding bet or one that will disrupt the ecosystem and backfire on Apple?