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Reading and rereading the press release and subsequent comments, I now think that at the moment Kali Yuga may well be right, and that this refers only to subscription offerings.
The mention of content in the press release is in relation to blocking web links in the application, and can be read as "if Amazon offers magazine subscriptions through their Kindle app on iOS then they must use the iOS in-App purchase method and remove links to their external site that offers content and subscription purchase".
Without further clarification from Apple, it does leave the door open for the Kindle app to work the way it does now as long as it doesn't offer magazine subscriptions (the Android app does offer them).
The fact that the Sony Reader app was pulled may have no bearing on this, as the suggestion was that it tried to offer an alternate in-App purchase method, not an external website-based one.
Graham
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