Apple Will Require In-App Subscriptions For Periodicals By March 31
by Joe White
February 3, 2011
Apple will reportedly require all App Store periodicals to utilize its new "in-app subscriptions" feature by March 31. The feature is expected to premiere with iOS 4.3, which should be released in the coming weeks.
This news comes from The Wall Street Journal. They note that Apple is making some publishers "uneasy" with its new billing and delivery system.
Apple's moves are a hot topic, in part because they could require publishers to share revenue from some content with the Silicon Valley company for the first time. The hardware maker also could require that publishers forgo collecting valuable subscriber data they rely on to market their products, an issue that has emerged as a sticking point in discussions with publishers, people familiar with the matter say.As of this moment, Apple has just the one publisher on board: News Corp., who is using the service for The Daily. News Corp.'s digital publication premiered yesterday, and users of the app can already configure a subscription in the iTunes Store. While Apple is requiring the implementation of in-app subscriptions and purchases, publishers can still sell through websites, alongside the in-app option. Sony's attempt to skip Apple's in-app system resulted in its Sony Reader application being denied access to the App Store recently. Obviously, Apple is forcing publishers to utilize its in-app services in order to maintain control, and to make some cash (as Apple takes a cut of sales via in-app subscriptions and services). Is this right? Let us know your thoughts in the comments below.
