TECH CRUNCH – Feb 15 – Apple is placing on a huge bet on the acceptance and success of the company's new subscription policy. In short, any service offering an app with any sort of subscription component must also offer an in-app option to purchase the same subscription at equal or lesser cost. The real kicker – Apple collect a 30% fee on all in-app purchase revenue. Apple CEO Steve Jobs is saying that this move will “provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone.” While this may be a windfall for Apple, third party developers certainly won't like the outcome. FULL ARTICLE @ TECH CRUNCH
This may have significant implications for the dating industry and their relationship with Apple and iOS Apps. Apple appears to be saying that a site may not offer off App subscription billing, for example via a mobile web page and a third party like Paypal, unless you also make the identical subscription offers available via in App purchasing. On the face of it the implications are huge and daunting – Apple would like you to believe that higher conversions through one click frictionless App payment, offsets the loss of 30c in the dollar from any App related monetising of an existing audience. They are of course ignoring that the site has paid to acquire the audience! We are very focused on this issue and how it is going to play out.
This may have significant implications for the dating industry and their relationship with Apple and iOS Apps. Apple appears to be saying that a site may not offer off App subscription billing, for example via a mobile web page and a third party like Paypal, unless you also make the identical subscription offers available via in App purchasing. On the face of it the implications are huge and daunting – Apple would like you to believe that higher conversions through one click frictionless App payment, offsets the loss of 30c in the dollar from any App related monetising of an existing audience. They are of course ignoring that the site has paid to acquire the audience! We are very focused on this issue and how it is going to play out.
nice recap brendan. this is potentially crippling for music services (rhapsody, last.fm, etc.) as they already operate with slim profit margins on subs sold.
as a dating operator, i would be more amenable to paying 30% for any new member that both registered and upgraded through the app, but paying 30% of sales for members that we have already spent money to acquire (ie register) outside of the app is BS. i reckon that some companies will pull out entirely or forego offering a subscription option on their app. certainly not ideal.
nice recap brendan. this is potentially crippling for music services (rhapsody, last.fm, etc.) as they already operate with slim profit margins on subs sold.
as a dating operator, i would be more amenable to paying 30% for any new member that both registered and upgraded through the app, but paying 30% of sales for members that we have already spent money to acquire (ie register) outside of the app is BS. i reckon that some companies will pull out entirely or forego offering a subscription option on their app. certainly not ideal.
30% seems very steep. 10% would seem more fair and sustainable.
30% seems very steep. 10% would seem more fair and sustainable.
Guys, from my CTO today:
From Steve Jobs himself (in one of his famously terse e-mails):
“We created subscriptions for publishing apps, not SaaS apps.”
i.e. if you are publishing magazines, etc. you have to offer Apple’s subscription service as an option. If you’re doing SaaS (software as a service, such as what we do) you can charge however you’d like.
So the issue is moot.
Guys, from my CTO today:
From Steve Jobs himself (in one of his famously terse e-mails):
“We created subscriptions for publishing apps, not SaaS apps.”
i.e. if you are publishing magazines, etc. you have to offer Apple’s subscription service as an option. If you’re doing SaaS (software as a service, such as what we do) you can charge however you’d like.
So the issue is moot.