Today Apple officially announced their new service for newspapers, magazines, music and video in their App Store. This is a new subscription model for content publishers within the App Store. So who benefits from a sweeter deal here? The publishers or Apple?
Well, publishers have every reason to be smiling here. Due to this new deal if they themselves drive their own subscriptions they would in turn receive a 100% revenue package. And if Apple drives subscriptions to the publishers they take delivery of 70% revenue from a customer they never had in the first place. 70% is better than 0% right? Ok, so Apple is still being tight fisted with their 30% share of revenue but in saying that they are still generating subscriptions for the publishers.
However, the tender disparity still exists between Apple and publishers regarding Apple’s consumption and safeguard of consumer data. We reported on this in a previous blog on our 3D Issue website.
Apple claim to be protecting their consumer’s details and particulars. However, many argue that this is just a selfish tactic by Apple in order to own the distribution model, just like they did with the music distribution model.
In its released statement Apple said that if a publisher decides to sell their digital subscription outside of the App Store then the same, if not better, sale price must be available to App Store subscribers. Apple say this is so the subscriber can “easily subscribe with one click, right in the app.” (Steve Jobs, CEO Apple)
So what does this mean for the paying subscriber? Will this result in higher pricing for published content? Well, in order for Apple to accumulate their 30% through in app subscriptions the overall price of subscriptions has to rise. Basically, this means that the customer will be paying 30% more for what they can now get 30% less, just so Apple can get their 30% cut. Look what happened with iTunes. They started selling music singles for $0.99USD. The price of a single has now risen to $1.29USD. No coincidence there! Apple just seems to want more and more which in turn ends up costing the paying subscriber more and more. Where will they draw the line?
By 3D Issue