Opinion: Could Apple Soon Officially Be Dubbed A Schoolyard Bully By Their Most Loyal Of Fans?
February 16, 2011
If it hasn't been obvious enough, the new "hot button" topic making its way through news and blog sites is the launch of Apple's App Store subscription service. The service isn't breaking news but the new tone it has brought along with it has started a slew of angry outbursts.
The subscription service really debuted with the launch of The Daily, but Apple officially announced the widespread availability today. As All Things Digital's - Digital Daily reports, a longstanding guideline will now be more strictly enforced.
“For existing apps already in the App Store, we are providing a grace period to bring your app into compliance with this guideline,” it reads. “To ensure your app remains on the App Store, please submit an update that uses the In App Purchase API for purchasing content, by June 30, 2011.”So, users and developers have a bit of time to spare. But what exactly is inevitable? Having the convenience of signing up for and managing many app subscriptions from a single account: your iTunes Store account. That doesn't sound so bad, does it? Notwithstanding, we have plenty more to go through.
“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,” said Steve Jobs, Apple’s CEO.Steve and company want a finder's fee. That seems like a reasonable compromise, right? Apple charges the same for apps, and it's because they advertise the App Store and otherwise bring customers that these developers would have to struggle in acquiring themselves. But wait Steve, that's not a finder's fee! Apple will be taking 30% from every payment until someone decides to cancel. Therefore, each month 30% of your Netflix payment will slide into Apple's pockets. How is that fair? Apple isn't accumulating expenses for providing the service, just helping to get the app out to people. Some may find this to be just enough within the acceptable boundaries to not provoke a fight. Even if you do, there are a couple questions to ask. What if you stop using Netflix on all of your iDevices and go back to strictly your computer, Xbox 360, or Wii? Does Apple still keep getting a cut? Maybe you'll just need to do a lot of unnecessary steps to transfer your account back into Netflix's direct control. That seems silly. And, this would go for Hulu Plus and many other changing content providers as well. What's the other issue? These companies are basically adding a 30% expense. With Apple's rules, companies like Netflix couldn't just raise the iOS app subscription to compensate, they would need to raise everyone's prices. If you're upset right now, perhaps you should be. Apple really wants their cut, so they aren't allowing people to just bypass in-app subscription methods with a simple tap.
In addition, publishers may no longer provide links in their apps (to a web site, for example) which allow the customer to purchase content or subscriptions outside of the app.That's fine with me. Continuing with the press release, however, there could be a glimpse of clear skies. I read this next part over and over, and I'm going to be optimistic about it.
Publishers who use Apple’s subscription service in their app can also leverage other methods for acquiring digital subscribers outside of the app. For example, publishers can sell digital subscriptions on their web sites, or can choose to provide free access to existing subscribers. Since Apple is not involved in these transactions, there is no revenue sharing or exchange of customer information with Apple. Publishers must provide their own authentication process inside the app for subscribers that have signed up outside of the app. However, Apple does require that if a publisher chooses to sell a digital subscription separately outside of the app, that same subscription offer must be made available, at the same price or less, to customers who wish to subscribe from within the app.As I understand it, again using Netflix as an example, this allows users to still sign up on the Netflix web site and use the iOS app as a portal by simply logging in. It still means that Netflix would be required to offer an in-app subscription option and no links to their sign-up web page. That makes me release one sigh of relief. Even if I'm correct with my former interpretation, that leaves one problem still standing. Some customers will undoubtedly be interested in using the convenience of the App Store subscription service. After all, it isn't costing the customer any more in short term thought. The existing problem would be that Apple is still taking a very noticeable chunk of that profit away from Netflix, which could raise the prices for everyone. I'll admit to being dang near a stereotypical Apple fanboy. I can accept certain App Store and iTunes restrictions on content distribution and sharing. I can even be comfortable with only App Store apps being allowed on iDevices. However, Apple using their market share and image to threaten what could possibly be described as borderline theft is a bit more than I can swallow. Ultimately, it appears that Mr. Jobs and crew are getting a bit too big for their britches. Granted, this is only speculation and opinion based on current and past information and events. While I'm well aware that Apple is a company with profits being the priority, this latest muscle flexing really looks to be very little benefit and more like bullying customers and developers for endless milk money. Some may be saying this is too little too late. Others may be suggesting to jump ship or just jailbreak and move to the "dark side" of the iOS community. I won't be doing either of those things. Staying logical, I'm going to wait and see the final outcome, but I won't be giving in if the worst comes to fruition. As an alternative, I'm just thinking and hoping that because I already have the Netflix, Pandora Radio, and other apps on my computer and iDevice; I'll just refuse to update them when the time comes. Do you come to the same conclusions? Do you have the same concerns? Am I getting ahead of myself? I'm somewhat hoping so, but what's your take on the unfolding situation?
