Apple App Store Subscriptions launched, Apple gets 30 percent cut

By on Feb 16, 2011 in Internet, Software, Technology Comments

Apple App Store launched on Tuesday its subscription services for all publishers, apparently the same feature that News Corporation’s ‘The Daily’ has acquired about two week ago.

As announced at Apple App Store, the subscription service is now available to all publishers of content-based apps and Apple will get a 30-percent cut from each subscription.

This latest service from Apple is applicable to all online magazines, newspapers, video, music, and others, which will be sold via the Apple App Store.

Below is the statement of Apple CEO Steve Jobs regarding this matter, as quoted as saying on the news release.

“Our philosophy is simple—when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing.

All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app.

We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers.”

Meanwhile, Apple said that publishers have their option to set the price and subscription period (ex. weekly, monthly, quarterly, etc.), and the customers will be automatically be charged accordingly. Apple will then process all the payments, and will get a 30%-share as mentioned earlier.

If a publisher wishes to sell a digital subscription outside of the app, Apple is requiring them to make the same subscription offer with at the same price or lower, to customers who desire to subscribe from within the app.

In addition, publishers now cannot provide outside links in their apps anymore which allows customers to buy subscription outside of the app.

For customer privacy concerns, Apple said App Store subscribers will be given a choice if they want to provide the publishers their personal information or not.

Spread The News!

Tags: , , ,


Related News

What's On Your Mind?