RE: Apple new in-app purchase policy

[BobLenx]

Hmm, am I wrong or is iTunes running on a PC basically an app like the Kindle app running on an iPad? You run iTunes and can purchase Apple media within the app. So now Apple wants 30% of all in-app sales from Kindle and Sony and others or they are going to pull those apps. Interesting.

How would Apple like it if all the PC manufacturers decided to prevent iTunes from running on their hardware because they don't make any money on it? Or if they told Apple that they had to pay them 30% of all iTunes sales run by users of their hardware? Or maybe Microsoft should reprogram the Windows operating system to disallow users to install and run iTunes until Apple pays them 30%.

Am I missing something here?

[SamuraiXSendai]

Love your take!

[MichelRenaud]

Sounds good to me.

[Anarel]

Brilliant!

[Shack70]

iTunes is the delivery system for apps on apple devices. Many companies are making free apps to get them on the iOS devices them simply pointing users to a market where they sell users things. Apple had decided that if you want to have an app on the the store they own and it delivers paid content then they want a part of the cut. 30 percent is a bit high but then it also drives these competitors off the the platform so Apple can then sell you Apple's version of that product.

[Barty]

Originally Posted by BobLenx

Hmm, am I wrong or is iTunes running on a PC basically an app like the Kindle app running on an iPad? You run iTunes and can purchase Apple media within the app. So now Apple wants 30% of all in-app sales from Kindle and Sony and others or they are going to pull those apps. Interesting.

How would Apple like it if all the PC manufacturers decided to prevent iTunes from running on their hardware because they don't make any money on it? Or if they told Apple that they had to pay them 30% of all iTunes sales run by users of their hardware? Or maybe Microsoft should reprogram the Windows operating system to disallow users to install and run iTunes until Apple pays them 30%.

Am I missing something here?

Microsoft cannot do that to iTunes, unless they're going to require ALL software vendors to do the same. Your analogy is off. Apple is not picking on amazon or any particular vendor. That is just their blanket policy.

I do think Apple needs to rethink subscription model. It makes sense to collect 30% from normal apps, because well let's face it, without the platform, those apps don't exist. Think angry birds, for ex. iOs is the 800lb gorilla. They're like the only kid on the block with a nintendo, so if you want to play, you gotta suck up to the kid. Yes there is android, but so far, something like 80% of app revenue belongs to iOs. Would you rather sell $80 worth of app, and give 30% to apple, or $20 worth and give 10% to google?

For something like the Daily, 30% is workable, because the iPad is the only game in town now. Competition is forthcoming, but still one year behind.

For the kindle and services like pandora, 30% is unworkable. Expect a revolt and a compromise from apple. And if apple doesn't, well content providers can take their ball and go home.

[mewmartigan]

I don't see the Kindle app falling under Apple's new policy.

When you click on the "kindle store" in the app, it takes you out of the app, to the mobile browser and amazon's mobile site. You are doing any "in-app" purchasing.

[HarryT]

Originally Posted by mewmartigan

I don't see the Kindle app falling under Apple's new policy.

When you click on the "kindle store" in the app, it takes you out of the app, to the mobile browser and amazon's mobile site. You are doing any "in-app" purchasing.

You are somewhat missing the point. Apple's new policy appears to say that if you offer "out of app" purchasing (eg via a web site) then you must ALSO offer in-app purchasing at the same price, and Apple will take a 30% cut.

[lunixer]

Originally Posted by Barty

Microsoft cannot do that to iTunes, unless they're going to require ALL software vendors to do the same. Your analogy is off. Apple is not picking on amazon or any particular vendor. That is just their blanket policy.

I do think Apple needs to rethink subscription model. It makes sense to collect 30% from normal apps, because well let's face it, without the platform, those apps don't exist. Think angry birds, for ex. iOs is the 800lb gorilla. They're like the only kid on the block with a nintendo, so if you want to play, you gotta suck up to the kid. Yes there is android, but so far, something like 80% of app revenue belongs to iOs. Would you rather sell $80 worth of app, and give 30% to apple, or $20 worth and give 10% to google?

For something like the Daily, 30% is workable, because the iPad is the only game in town now. Competition is forthcoming, but still one year behind.

For the kindle and services like pandora, 30% is unworkable. Expect a revolt and a compromise from apple. And if apple doesn't, well content providers can take their ball and go home.

But then, let's face it. Without the applications, the Apple phone wouldn't exist. So your analogy is off too.