Apple has Launched the ability for developers to create apps that users can pay a subscription. Now with this feature users will be able to shop and purchase subscriptions through the iPhone, iPod, iPad app while apple will take 30% of the value of the transaction because it is a service provider. Subscriptions are available in a range of options such as weekly, monthly, every two months, every quarter, half and yearly.
Publishers who use Apple subscription service in their app can also leverage other methods for acquiring digital subscribers outside of the app. For example, publishers can sell digital subscriptions on their web sites, or can choose to provide free access to existing subscribers. Since Apple is not involved in these transactions, there is no revenue sharing or exchange of customer information with Apple. Publishers must provide their own authentication process inside the app for subscribers that have signed up outside of the app.
However, Apple does require that if a publisher chooses to sell a digital subscription separately outside of the app, that same subscription offer must be made available, at the same price or less, to customers who wish to subscribe from within the app. In addition, publishers may no longer provide links in their apps (to a web site, for example) which allow the customer to purchase content or subscriptions outside of the app.
Apple CEO Steve Jobs said:
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.
The model chosen by Apple for Apple Subscriptions and in app purchases only serves to Apple and those who manage to coordinate with the rules laid down in the Apple App Store. In practice this means that apps such as the Amazon Kindle or free apps containing links to the web, will be forced to change tactics and to comply with the requirements of Apple will get 30% of value.
