Apple seems to have a knack of rubbing people up the wrong way, and today is no different. Last week we reported that Apple was rolling out its new in-app subscription service to allow publishers to charge customers for digital publishing content.
Part of the new subscription deal is that Apple wants to take a 30% stake of any subscription fee - this has led to a barrage of the world top publishers to complain that 30 % is quite frankly a ridiculous price to pay.
While Apple has always taken a small fee from App sellers - usually 20% – taking 30% of a subscription fee for content created by a third party seems ultimately unfair and draconian and they’ll take 20% of the app price too.
The company's latest move into in-app content has become the target of anti-trust regulators in the US and Europe as publishers wishing to distribute iPhone and iPad-bound electronic versions of their printed media are told they will have to fork over a third of all profits.
Prior to this announcement publishers would be able to offer content through their own paid portal - meaning Apple couldn't touch the revenue - but as of June 30th such a process will be banned from apps meaning the subscription is the only way publishers will be able to make any money through app subscriptions.
The International Newspaper Marketing Association announced: “Publishers simply can’t afford to invest in new technology, products and services when the platform charges them 30% of total revenue.”
Apple’s CEO Steve Jobs formerly describing the subscriptions services said: “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.”
Talking with the BBC, industry analyst from Forrester Research, James McQuivey, said of Apple's planned publishing charges: “Taking a 30% toll amounts to a massive increase in the cost basis of a content business that will kill it." He added: “In the end, Apple envisions a world in which people don’t consume any kind of digital media without its help."
So what do you think of Apple's greed? Is 30% a fair deal for all or is it the case that publishers aren't forced into the deal and could easily publish through Android. Let us know your thoughts below.