Apple has made App Store subscriptions available for digital magazine publishing. Apple’s subscription model is now available to all iOS publications and enables users to automatically receive a new publication on a subscription model. Individual publishers can set their own prices and lengths of subscriptions. Apple will takes the same 30 percent share that it currently pulls from other in-app purchases.
Subscriptions are purchased through the apps themselves. Publishers who use Apple’s 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.
The subscription model was introduced at the launch of News Corp.’s The Daily. But the longstanding kerfuffle between Apple and publishers over app revenues has not exactly been resolved, says the NY Observer.
It provides a more seamless experience for subscription content. On the other hand, Apple requires all third party companies to remove payment links from their apps which show users how to subscribe without sending nearly a third of their money to Apple. Publishers are also prohibited from offering better prices for their content outside of the app.
Apparently, Amazon must remove their link to their Web e-bookstore, and offer in-app purchases so Apple can take its 30% cut.
UPDATE: Google has unveiled its own digital content payment system which appears to offer better terms for publishers. Google’s new service is called Google One Pass. As the name suggests, the focus is on making content available across multiple platforms. Publishers can use One Pass to let customers sign up once and access media on a phone, tablet, or web site using the same username and password.
Google also gives publishers control over how they charge for content. Publishers can set prices, determine whether to offer subscriptions, metered access, or offer individual articles for one-time payments. Transactions are handled through Google Checkout.
One Pass publishes will still have to fork over some cash to Google, but Google’ share is just 10% rather than the 30% Apple is charging.
