{"id":8948,"date":"2011-02-21T10:03:26","date_gmt":"2011-02-21T16:03:26","guid":{"rendered":"https:\/\/eshop.macsales.com\/blog\/?p=8948"},"modified":"2014-05-22T13:34:47","modified_gmt":"2014-05-22T18:34:47","slug":"app-store-subscriptions-apple-right-publishers-wrong","status":"publish","type":"post","link":"https:\/\/eshop.macsales.com\/blog\/8948-app-store-subscriptions-apple-right-publishers-wrong\/","title":{"rendered":"App Store Subscriptions: Apple Right. Publishers Wrong."},"content":{"rendered":"

\"\"Much has been said in about Apple\u2019s new App Store Subscription policy<\/a> which essentially says that apps can no longer link to external web sites to buy content or subscriptions. All subscriptions\/content must be able to be purchased in the app, with developers and publishers required to offer in app prices that are the same or better than deals available outside the app… like on content providers\u2019 web sites, for example.<\/p>\n

Content publishers are crying foul, and most everyone seems to agree. Terms like \u201cbig brother\u201d and \u201c1984\u201d are being bandied about with fervent anger.<\/p>\n

But the issue is: they\u2019re all wrong and Apple is actually right on this one.<\/strong><\/p>\n

Apple is in the business of making money, and is looking to make the App store and app experience a cohesive experience.<\/p>\n

Of course, since the newspapers and magazines have long wanted to provide subscriptions\u2014and they can swing the news a bit\u2014they\u2019re crowing about how unfair this is in their respective media outlets.<\/p>\n

Let\u2019s not pretend that magazines and newspapers aren\u2019t trying to cash in both ways on the App Store. They want to get into the marketplace and have Apple handle: app hosting, app delivery, showcase to millions of eyeballs, and most likely new customers, and not pay a dime for it aside from the $100 a year developer price.<\/p>\n

Apple is targeting a unified experience wherein users don\u2019t have to login into a different web site for every different app, with different login credentials for each service to subscribe or purchase content. That\u2019s a big fragmented market mess that even I don\u2019t want to be part of.<\/p>\n

Apple is also saying if\u2014and that\u2019s a big \u201cif\u201d\u2014the customer subscribes via the app, Apple gets their cut. They’re not saying users can only<\/em> subscribe via the app, but that the app must also have a subscription or in app purchase method from the content provider that doesn’t gouge the App Store users; it has to be at the standard price.<\/p>\n

Content Providers Can\u2019t See the Forest Through The Trees<\/h3>\n

Let\u2019s also not pretend that prices of magazines and newspapers drive revenue. The prices for mags and papers are there largely to pay for the logistics of printing and delivering the product, if they even pay for that. The money from both those types of industries comes from advertising and subscriber list selling.<\/p>\n

If they don\u2019t have to pay for printing and delivery of physical media why are they trying to charge for the app? In many cases, these content providers are charging the full newsstand price to boot! Delivery is free, Apple provides that. So why charge for the app? They\u2019re focusing on the short money versus the long term revenue gained by advertising to a large audience. For magazines, it\u2019s cheaper to tear out a subscription card and get year\u2019s worth of magazines than it is to buy 2-3 digital editions of the same magazine. Build the audience, and you\u2019ll build advertising. Don\u2019t require the reader to pay for delivery when there\u2019s virtually no cost.<\/p>\n

Apple doesn\u2019t share a list of people who bought the app with the app creator, and they shouldn\u2019t. If magazines and papers want that info they could always offer a sweepstakes or prize or something to get users to sign up. Imagine that… a little marketing idea to solve that issue.<\/p>\n

Newspaper and Magazine App Quality<\/h3>\n

<\/strong>The newspapers, overall, get it as far as apps go. They\u2019re generally light, and the better apps pull up content quickly with an easy-to-understand interface.<\/p>\n

Magazine apps, on the other hand, have been an absolute joke. It essentially looks like the print designers are trying to learn the lessons web designers learned in the ’90s: that you simply cannot have a full resolution copy digitally without the file size being bloated, and most magazine apps suffer from extreme file size bloat. There\u2019s absolutely no reason a magazine app download should be CD-ROM sized at 500MB+. That\u2019s a joke. A 16GB iPad could only hold 30 magazines at that rate. Puh-leaze.<\/em><\/p>\n

Magazines need to realize their web site is closer to what an app should be like content wise versus their printed magazine. Their app doesn\u2019t need interactive 3D photos, and the like. Readers want to read the great content that\u2019s offered in the magazine pure and simple. Ditch the gimmicks, and make a high quality, efficiently sized product for once.<\/p>\n

Kindle and Sony e-Reader<\/strong><\/h3>\n

<\/strong>This is where it gets a little dodgy. Books don\u2019t have the advertising revenue like mags and papers so the pricing models need to provide profit. Again, Apple\u2019s not saying the user only has<\/em> to buy from within the app, they\u2019re saying that the purchasing ability has to \u201calso\u201d <\/em>be available within the app. In truth though, in app purchasing is a much better experience and is definitely the path of least resistance when it comes to books.<\/p>\n

I\u2019ve been a huge Kindle fan since the Kindle app<\/a> first came out on the original iPhone. I never liked having to setup an account on Amazon and come back to the app but, aside from that oddity, overall the Kindle app is one great app!<\/p>\n

I have a few books purchased through Kindle, but I\u2019ve mainly switched over to iBooks as the integrated experience it provides is much better. Both apps have a similar reading experience \/ quality, but I would have to give the edge to iBooks with bookmarking, highlighting, pdf reading, and other features.<\/p>\n

Kindle has a much bigger library of books to choose from, but I feel my purchases are more protected over the\u00a0long-term\u00a0via Apple\u2019s iBooks versus Amazon\u2019s Kindle. With iBooks, when I buy a book, it\u2019s downloaded like an app. I can keep it and load it on other iDevices my family owns, and read without an internet connection. For Kindle I need to log in and the books are essentially streamed as I read.\u00a0If the network is unavailable I can only read the pages that have been streamed thus far; if the service ever goes away, my books are lost. Essentially, with Kindle I feel I\u2019m paying to stream books instead of owning them like with iBooks… and with similar book pricing… I\u2019m betting my money that iBooks is going to be around a long time.<\/p>\n

With the iBooks app, both the Kindle and Sony e-Reader apps are now direct Apple competitors, and that\u2019s a hard place to be. Apple could\u2019ve simply said the apps provide functionality that already exists and dismiss the Kindle and Sony apps for it\u2019s own nefarious ends, but Apple didn\u2019t take that bullying maneuver (which if they did I would then agree with a \u201cbig brother\u201d label).<\/p>\n

Though I can see how it could be hard or impossible for Kindle or Sony to be able to honor Apple\u2019s in app purchase without the need to raise prices on their book library overall. The book publishing industry has a wonky \u201cold world\u201d remuneration and point of entry methodology I won\u2019t get into here. The industry knows what it needs to do, and publishers can either change with the industry or some will go extinct. Somebody else will fill in any gaps in book publishing left behind if any of the old players can\u2019t adapt.<\/p>\n

You won\u2019t exactly see Apple\u2019s iBooks app on a Kindle device, so the message that Apple is evil while others aren\u2019t is a bit dubious to me.<\/p>\n

Netflix<\/h3>\n

It\u2019s a great app. I\u2019m certain Netflix doesn\u2019t want to have to pay Apple 30% for those who subscribe via the Netflix App<\/a> in the App Store. But, overall, I would say that\u2019s a low cost for customer acquisition. It\u2019s Netflix\u2019s choice to decide if they want keep their app available, but I doubt they would want to leave that marketplace behind. Time will tell.<\/p>\n

June 30<\/h3>\n

All app creators have until June 30th, 2011 to comply with the new rules. So that will be the day we\u2019ll find out who chose to stay.<\/p>\n

In the end the App Store is a mega-hit. It\u2019s generally the best app store experience that everyone wants a piece of due to one simple reason… there\u2019s millions of paying customers in that unified marketplace.<\/p>\n

In Closing…<\/strong><\/h3>\n

<\/strong>Apple is smartly trying to make the App Store user experience better for the long haul to support subscriptions and in app purchasing, while also saying that if they bring customers to a particular company, that particular company can\u2019t circumvent the in app purchasing capability.<\/p>\n

Content providers need to wake up. There\u2019s a huge opportunity if they would just embrace it and implement it right. For book publishers and other media providers, it\u2019s the cost of doing business; do you want in or out?<\/p>\n","protected":false},"excerpt":{"rendered":"

Much has been said in about Apple\u2019s new App Store Subscription policy which essentially says that apps can no longer link to external web sites to buy content or subscriptions. All subscriptions\/content must be able to be purchased in the app, with developers and publishers required to offer in app prices that are the same […]<\/p>\n","protected":false},"author":2,"featured_media":8989,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"spay_email":"","footnotes":""},"categories":[7,3770],"class_list":["post-8948","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-random-thoughts-and-topics","category-unplugged"],"yoast_head":"\nApp Store Subscriptions: Apple Right. 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