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Apple’s Subscriptions for Content Publishers in the App Store

Apple, Services, Software | | February 16, 2011 11:21 am

app store

Apple has launched Subscriptions for Content Publishers in the App Store. With this new model, Apple will earn a 30 percent share for every new subscriber it brings to the app. When the publisher brings an existing or new subscriber to the app, the publisher will get to keep the 100 percent of the revenue.

According to Apple, publishers that are selling digital subscriptions outside the app, the same subscription should also be made available to App Store customers (at the same or at a lesser price). With this, publishers are not allowed to provide links in their apps that would allow a customer to purchase content or subscriptions that aren’t inside the app.

Why would one offer a lower subscription price in the App Store where only 70 percent of the revenue will go to the publisher? I think the pricing should not be controlled by Apple. For instance, a content publisher decides to have a sale that is exclusively available in his website while the content in the App Store stays at the regular price, does it mean that the publisher violates the policy of Apple? Also, I find it silly to not include a link that allows a user to purchase content from their website. I can see a big upgrade for the Kindle coming up.

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