Wednesday, 16 February 2011 15:36
Apple Launches Subscription Plan For App Store Apps
Apple rolled out its new App Store subscription service, and it validates longstanding suspicions about how the company would ultimately handle the demand for publishers to provide subscription based content through the App Store. The service will apply for all apps delivering content–magazines, newspapers, videos and music–on the same model as the recently launched app for News Corp’s “The Daily.” Under the plan, Apple will keep 30 percent of all profits on apps sold, with publishers setting the price and the length of the subscription. “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 in the statement. “All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app. 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, delighting both new and existing subscribers.” Apple did, however, slightly yield in terms of sharing customer subscription data. Protecting customer privacy is a key feature of all App Store transactions, Apple said in its formal press release on the matter. Customers purchasing a subscription through the App Store will be given the option to provide the publisher with their name, email address and zip code when they subscribe. In other words, subscriber information can be provided to the publisher – but only if the subscriber first sanctions it. Stay tuned for more new and info on this topic by following us on Twitter and/or by subscribing to our RSS Feed. [Source: Apple] Authors:
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