Apple’s New Content Purchase Model

Posted: February 16th, 2011 | Author: | Filed under: apple

Jamie Montgomerie has written a well-thought out post on Apple’s new iOS content purchase model, from the viewpoint of a developer (Jamie develops Eucalyptus). Definitely worth the read.

My problem with Apple’s new policy is not that they are taking a 30% cut for content sold through the in-app process, it’s that Apple is forcing developers to sell content through Apple’s process and taking a 30% cut. The implications are that providers behind some of the top apps on the iOS platform, such as Pandora, Netflix, Kindle and B&N’s Nook app, may decide they can’t agree to Apple’s terms and thus they can’t provide their content on the iPhone or iPad. That means no music through Pandora, no movies/tv shows through Netflix and no books through Amazon. And it may turn out that this won’t effect the big players like Amazon, but what about the small developers like Jamie? How is that fair to the developers and the consumer?

Yes, the new in-app content purchase model is easier for the consumer, since we will be able to manage all of our purchases and subscriptions through our iTunes account, but “easier” should not trump “choice.”

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