Friday, February 18, 2011

Apple's 30% Cut


Today Apple's App Store started their subscription service (for magazines and newspapers including The Daily). I won't be really using this service but the reason I put this on my blog that Apple is taking a massive 30 percent cut of each subscription. And it's not letting publishes charge more to cover those costs. Now if we compare this to Google's Subscription Plan, One Pass, Which coincidently was introduced on the same day as Apple's. Google is only taking 10%.


To ensure they get their cut, Apple has banned apps from linking to other subscription methods like the publisher’s website. Apple is also refusing share the details of those customers with the developer.


"In Australia, publishers have had their iTunes apps rejected for exploiting loopholes that allow them to sell subscriptions and accept payments without giving a share to Apple. Sometimes apps are rejected without an explanation."


So, No Cut. No Subscription.

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