Apple recently said it wants a cut of 30 per cent of all subscriptions sold on iOS devices, including services that offer music, video, newspapers and magazines. But go Apple cannot make digital publishers and content providers such as Amazon, Netflix and Hulu think long and hard to continue to offer apps for iPad, iPhone and iPod Touch devices.
Music subscription service Rhapsody has already vowed to fight, arguing that cut 30% of Apple would make iOS apps to Rhapsody "economically unsustainable". "We will collaborate with our peers in the market to determine a proper legal and working on this latest evolution," the company said in a statement.
Apple's new policy
Under the new in-app subscription model Apple announced Tuesday, all companies that offer content subscriptions on iOS apps should use the new subscription service from Apple. This means that Apple Gets a cut of 30 per cent of all subscription transactions that occur on a device of iOS.
As a trade off, digital publishers can still deliver content within an application of iOS existing subscribers free of charge as long as they also offer a "subscribe" button within the application of iOS.
But the part that has the potential to disrupt digital publishers is that all links to make purchases outside an app iOS must be removed. This means that links such as "Shop in Kindle store" button on Amazon, which starts from the Kindle app and mobile Safari for the purchase of books, can be removed.
What are the implications for the new mandatory subscription model of Apple? Let's take a look.
Easy to buy
For the average user of iOS, new model of Apple's subscription will allow you to purchase a subscription within your favorite applications with a few clicks. You won't have to worry about entering your credit card information, or by filling out a form on a screen of the iPhone since Apple has already cramped all your information.
Seamless experience
Although buy Kindle e-book on a device iOS is a pretty good experience, is quite a bit of a hassle. You have to go to the Amazon site, buy your book, and then reopen the Kindle app and go to the store to download the new element. Of course, purchase a book of Kindle is relatively easy once you get the hang of the system, but is far from a perfect experience.
Compare buying a Kindle book with getting a comic on Comixology iOS app. Let's say you want to buy an issue of The Green Hornet. All you do is hit the link buying, enter your account password and the Apple begins downloading. Two steps instead of four.
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