Apple clearly knew their App Store subscription terms “would spark controversy, and you can see that very plainly in Apple’s press release today,” MG Siegler writes for TechCrunch. “Just look at the quote included, from no less than CEO Steve Jobs.”
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. 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. – Apple CEO Steve Jobs, February 15, 2011
“He might as well be saying: ‘Everyone take a deep breath — here’s why this makes sense.’ And there’s no question that it does make sense — for Apple,” Siegler writes. “But a lot of third-party developers both large and small are going to be very, very pissed off by this move. Why? Because it totally changes the game. Companies with subscription elements of their content had been accustomed to leveraging Apple’s platform for free. Now there will be a fee. And it will be a significant fee.”
Siegler writes, “At the same time, Apple has a point. Actually, a few of them… Apple’s aim here is not only to make money, but to enable everyone to make money with a system that actually works. How are they going to do that? By doing something that all companies say they do, but few actually really do: focus on the consumer.”
Much more in the full article – recommended – here.
MacDailyNews Take: As we wrote earlier today, “Apple’s on the side of the consumer yet again. Publishers who don’t like Apple’s terms are more than welcome to invest in the creation of apps for tablets not named iPad if they mistakenly believe that will net them more profits.”
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]