Tuesday, February 15, 2011

Apple: if we get you subscribers, we deserve a cut

Ars Technica:
It has been almost two weeks since The Daily made its debut on the iPad, but Apple has finally announced its in-app subscription terms for other offerings in the App Store. The system is open to all publishers of content-based apps—music, newspapers, video, and magazines, but not insurance policies. Anyone who sells subscription-based content outside the App Store must also use Apple's system, giving Apple a 30 percent cut. Hello in-app Netflix subscriptions?

"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," CEO Steve Jobs said in a statement. "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."

Apple's announcement went on to emphasize that publishers are not limited to using the App Store for subscriptions; they're allowed to use their own websites to sell subs. They can even offer free access via their apps to existing out-of-app subscribers (so, if you subscribe to a magazine in print form and that magazine lets you get iPad subscriptions for free as part of your agreement, that's still allowed). However, companies cannot offer those types of subscriptions as the only options within their iOS apps—just like Apple's newly enforced rule with e-books, publishers must go all-in with Apple's subscriptions and their own, or they can't be on the App Store.

Oh, and the subscriptions offered within iOS apps must be the same price or less as the company's other offerings, and the apps can no longer link to an outside store where users can purchase content. ...