Apple announced the launch of its App Store Subscription model recently and the offer is likely to benefit few services and affect lot more. In simple terms the Subscription model is meant to channelize all the content purchase only through Apple and provide them with 30% share on the sale. Some additional conditions on top of this may be pushing some services like Rhapsody over the edge.
In addition to offering 30% share on any sale of content from the marketplace including Magazines, Newspapers, Video and Music the service providers need to make the in-app pricing of the content to be the same as outside offerings. This means that the service providers cannot increase the price of the content in App store to counter the 30% share to Apple.
Rhapsody is one of the leading digital music subscription services in US, with 750,000 subscribers and they offer music service across multiple platforms using free apps. They currently offer subscription through their side Rhapsody.com and as per the new policy from Apple, this is not allowed. The apps should not direct to external links / sites for subscription, instead should go through the Apple community to purchase content / subscription.
For now Rhapsody may be pulling the plug on the iOS App and continue to provide their service through the web platform. Though a bit inconvenient for users, it may be better for Rhapsody. In the mean time Rhapsody is planning to collaborate with its market peers to determine an appropriate legal and business response to Apple.
The iOS platform has proven beneficial for many developers, but for additional content like books I would like to go through the respective content providers and not through Apple. I am happy that Rhapsody has decided to openly criticize the move from Apple and hope this gets enough support from other content providers.
Author: Vinod
Source: Engadget
In addition to offering 30% share on any sale of content from the marketplace including Magazines, Newspapers, Video and Music the service providers need to make the in-app pricing of the content to be the same as outside offerings. This means that the service providers cannot increase the price of the content in App store to counter the 30% share to Apple.
Rhapsody is one of the leading digital music subscription services in US, with 750,000 subscribers and they offer music service across multiple platforms using free apps. They currently offer subscription through their side Rhapsody.com and as per the new policy from Apple, this is not allowed. The apps should not direct to external links / sites for subscription, instead should go through the Apple community to purchase content / subscription.
For now Rhapsody may be pulling the plug on the iOS App and continue to provide their service through the web platform. Though a bit inconvenient for users, it may be better for Rhapsody. In the mean time Rhapsody is planning to collaborate with its market peers to determine an appropriate legal and business response to Apple.
The iOS platform has proven beneficial for many developers, but for additional content like books I would like to go through the respective content providers and not through Apple. I am happy that Rhapsody has decided to openly criticize the move from Apple and hope this gets enough support from other content providers.
Author: Vinod
Source: Engadget
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