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Apple Backtracks On In-App Subscriptions, Makes Key Changes To The Policy

Apple Backtracks On In-App Subscriptions, Makes Key Changes To The Policy

June 9, 2011
Today, we're learning that Apple has altered it's controversial in-app subscription policy. Back when Apple unveiled its new policy, publishers were told that they must offer Apple's in-app subscriptions by June 30, either as the sole method of subscribing to content or alongside their own model. This upset a great many publishers and developers, as Apple's in-app subscription policy results in the Cupertino, CA company scooping 30 percent of subscription sales - companies had to offer the same content within apps, and couldn't simply sell outside. Furthermore, the price of subscriptions had to remain the same, despite Apple's 30 percent cut. Now, Apple has amended the policy. Previously, section 11.13 read:
11.13 Apps can read or play approved content (magazines, newspapers, books, audio, music, video) that is sold outside of the app, for which Apple will not receive any portion of the revenues, provided that the same content is also offered in the app using IAP at the same price or less than it is offered outside the app. This applies to both purchased content and subscriptions.
And now, the section (which has is labeled 11.14) reads:
11.14 Apps can read or play approved content (specifically magazines, newspapers, books, audio, music, and video) that is subscribed to or purchased outside of the app, as long as there is no button or external link in the app to purchase the approved content. Apple will not receive any portion of the revenues for approved content that is subscribed to or purchased outside of the app.
Providing publishers and developers don't include links to their own subscription models within iOS applications, they do not have to offer Apple's in-app subscription model as a means of subscribing to a service. This is particularly important for Netflix and Amazon, who now do not have to support Apple's in-app subscriptions within their iOS apps (providing they do not link to their own external subscription models). Furthermore, the change means that, if a company does include in-app subscriptions (alongside their own), they may offer in-app subscriptions at a premium price in order to cover the 30 percent cut Apple takes. This is a massive change from Apple's original policy, and it will undoubtedly have an affect on the adoption of in-app subscriptions. We'll keep you posted. [via MacRumors]

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