Sunday, February 20, 2011

New subscription plans for Apple: 5 services that might get screwed

Although the new approach Apple subscriptions on the iPhone and iPad is apparently intended to publishers of newspapers and magazines will also effect non-publication apps.

All subscription-based applications will soon be required to provide in-app purchases, with a cut of 30 per cent going to Apple. This means that profit margins for Internet services will get lighter as consumers are enticed to get their subscriptions directly via the iOS. John Paczkowski at all things d notes that these applications have until 30 June to provide a mechanism for in-app purchasing and, although they still can allow subscriptions outside of the app, the prices within iOS must be equal or better.

Here are five services that may be affected by the change of the policy:

Hulu

Hulu charges $ 8 per month for his Hulu Plus service, extending access video streaming for the iPhone and iPad, among other devices. But Hulu has also to pay for content makes available, and that might be difficult if subscriptions coming through iOS result $ 2.40 less revenue per user, per month. My prediction: Hulu Plus users will be treated to more ads on iOS devices to make up for Apple to cut.

NetFlix

As Hulu, Netflix charges $ 8 per month for a plan of video streaming that excludes DVD mail-order. However, I'm guessing that the impact of Apple's policy on the Netflix subscription will not be immediate as a cause of enormous subscriber base and plenty of other devices that support streaming of Netflix. Prediction of the worst-case scenario: Netflix removes its apps iOS as a kind of power play.

Kindle/Nook/Kobo

Apple's policy also States that apps cannot include links that allow the customer to buy content or subscriptions outside of the application ". This means e-book apps like Kindle from Amazon and Barnes & Noble's Nook will have to sell their products in terms of Apple. If these services would remain on iOS devices without destroying your profits will increase prices of electronic paper.

MOG/Napster/Rdio/Rhapsody

All three music subscription services listed above charged $ 10 per month for unlimited music streaming, on demand of smartphones, while comparable services on your PC will cost only $ 5 per month. Why the discrepancy? Playback on mobile phones requires additional license costs. Although I do not know how much money these services make per subscriber, I hope it is more than $ 3. Otherwise, cutting 30 percent of Apple will wipe out profits for these services, could lead to price hikes for new subscribers.

Dropbox/Box.net/SugarSync/etc.

There is no shortage of online storage services, clamoring for your business with iOS apps, all with different pricing models. Expect the reaction is different for each service, but those who need to modify their may use a combination of higher prices, lower monthly limits or file size restrictions.

Jared blogs for today @ PC World from Los Angeles. Say hi on Twitter.



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