Apple's subscription plan: time for a work stoppage of app

Subscription plan of Apple executives had a bevy of media in a tizzy and many were still trying to figure out the new App Store new deal. But these types of media they were sure Apple's new deal was not good.

The fuss was raised above the next step in Apple's statement:

Publishers that use the Apple subscription service in their application may use other methods for capturing digital subscribers outside of the app. For example, publishers can sell digital subscriptions on their websites, or may choose to provide free access for existing subscribers. Because Apple is not involved in these transactions, there is no revenue sharing or Exchange customer information with Apple. Publishers must provide authentication process within your application for Subscribers who joined outside of the app. However, Apple requires that if a publisher decides to sell a digital subscription separately outside the application, offering the same subscription must be made available, at the same price or less, customers wishing to subscribe within the application. In addition, publishers cannot provide links in their applications (to a website, for example) that allow the customer to buy content or subscriptions outside of the app.

In a nutshell, Apple wants a cut of 30 per cent in-app purchases. If you are a publisher of movies or music, this might be a big problem. First, companies like Netflix and Rhapsody charge content owners and then another cut Apple pay for the privilege of being in the App Store.

Here is a look at some of the spill:

At first glance, this is exactly what I was fearing a lot of publishers: Apple itself as a toll approach of interest on the road of orgs news for a new business model. (Excuse the metaphor). For publishers who were counting on a new race of Tablet PC revenue to support a model of the press in late, it is disappointing to learn that, in return for the convenience of a "buy" button in their iPad app, you have to give up to 30 percent of the revenue it generates.

Rest assured that the dismay over new rules of Apple is just beginning. However, let's say Hulu, Netflix, the New York Times and a few others, saying Sirius XM, all pull their apps on Apple in-app switch. Apple will listen. Blocks, this move may be risky for publishers because iPad is the only game in town for now. But if enough large content providers, and subscription pulled the plug on the App Store and supported Android, Apple move could backfire.

It seems that Apple has all the lever, but that's not really the case. If there is an interruption of work, loss of Apple app could be Android's gain.

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet sister site TechRepublic.