04-23-2012, 03:02 PM
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#690
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Banned
Posts: 1,118
Karma: 3111746
Join Date: Oct 2011
Device: Kindle & little green monster
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wall street journo http://www.google.com/url?sa=t&rct=j...YDsZJr75EFa76w
Quote:
'I don't think you understand. We can't treat newspapers or magazines any differently than we treat FarmVille."
With those words, senior Apple executive Eddy Cue stuck to his take-it-or-leave-it business model of a 30% revenue share payable for transactions through the iTunes service. Despite my arguments to Mr. Cue in Apple's Cupertino, Calif., offices last year on behalf of news publishers seeking different terms, to him there was no difference between a newspaper and an online game.
It was a sobering reminder that traditional media brands have no preferred place in the new digital world. It also should be the defense's Exhibit A in the Justice Department's antitrust case against Apple and book publishers: The 30% revenue-share model is Apple's standard practice, not, as alleged by the government, the product of a conspiracy.
Whether it's news, games, apps or books, Apple's position is the same. The market determines the price, and Apple gets 30%. The Justice Department fails to acknowledge anywhere in its 36-page complaint against Apple and book publishers that this is the standard approach.
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