Apple's greed drives major retailers from app store

Discussion in 'Digital Photography' started by RichA, Jul 27, 2011.

  1. RichA

    RichA Guest

    (WIRED) -- We all knew that once Apple starting enforcing new rules
    for in-app purchases, it would change how media companies do business
    on the iPhone and iPad.

    Now, we're beginning to see just what that looks like for companies
    trying to avoid giving a 30% cut to Cupertino. Amazon, Kobo and Barnes
    & Noble all removed the stores from their iOS applications on Monday,
    as well as any hyperlinks to or mentions of their online stores.

    Google Books -- recently announced distribution and retail partner for
    the new multiplatform Harry Potter e-books -- is simply gone from the
    App Store, without explanation from either Apple or Google, although
    possibly a revised app may be forthcoming.

    Users of these newly-storeless apps can still download and read all
    content purchased elsewhere. But the apps are no longer an easy direct
    or indirect portal for sales, to the chagrin of their developers and
    some of their customers.

    The absence of this portal will hurt some retailers more than others.
    For readers accustomed to buying content via the web, not much will
    change. But it reduces the overall functionality of the apps --
    booksellers would love to have an easy way to sell new products to
    customers immediately, based on what they're reading or searching for
    right then -- and new or less-sophisticated users might find the need
    to make an end-around via the web browser confusing.

    It's an extra bit of friction in an otherwise mostly friction-free
    experience. And any additional friction for other booksellers clearly
    strengthens the position of Apple's own iBooks.

    As CNET's David Carnoy writes:

    "When all is said and done, Apple's iBooks will be the only iOS app
    that will allow you to buy e-books directly from within the app. But
    at least Apple has allowed e-reading apps from other companies to
    remain in the App Store. You can choose to see that as a magnanimous
    gesture -- or not."

    Some history here: when Apple first announced its rules changes in
    February, it looked like it might wipe out independent e-reading apps
    altogether.

    Any company making purchasable content available via its app was
    required to also make it available at the same price for in-app
    purchase through Apple. These terms wouldn't have taken a cut of every
    book Amazon or Kobo or Barnes & Noble sold-- their own websites would
    be left untouched -- but many prospective purchasers would never make
    it out of the app.

    And for those sales, Apple's 30% cut would wipe out most or all of the
    bookstores' profit -- death to a low-margin business like book retail.

    Subscription services were even more convoluted. Would anyone pay for
    a streaming music subscription like Pandora or Spotify through the
    companies' web sites if they were mostly using the service and
    encountering it for the first time through its mobile app?

    In June, Apple amended its rules. Publishers and retailers can now opt
    out of Apple's in-app purchases and still sync purchased content.
    However, they can't link to their own web stores or otherwise set up
    an independent shop to push sales or subscriptions from within the
    app.

    If the store's on the iPad, it's Apple's store, and Apple gets its
    cut. That's why Amazon et al had to change their apps today. As we've
    seen, now that Apple has begun enforcing the new rules, e-book
    retailers are overwhelmingly opting out.

    So, too, are periodicals: yesterday, the Wall Street Journal, one of
    the handful of newspapers who've had success with paywalls, announced
    it would also no longer sell content through its iOS apps. The
    Financial Times announced it would forego the App Store altogether,
    presenting a slick HTML 5 web app.

    Publisher Condé Nast, whose holdings include Wired and The New Yorker,
    still sells issues of its magazines through their free iPad apps. But
    after big sales of early issues, the company has also made its iPad
    editions free for print subscribers -- subscriptions it can sell and
    advertise easily via the web.

    On Monday, Condé Nast also announced a new media and revenue
    partnership with social reading app Flipboard. Wired, The New Yorker,
    Bon Appetit give Flipboard iPad-optimized content. Flipboard provides
    the reading portal. American Express and Lexus sponsor the special
    Flipboard editions with their own advertisement.

    More titles and advertisers will follow. Condé Nast and Flipboard
    split the revenue. Apple gets nothing -- besides maybe more magazine
    lovers buying and using its iPads.

    It's a mixed strategy, giving multiple paths to both readership and
    revenue. It's also partly dictated by the fact that Apple has created
    both a huge opportunity for media companies and erected a partial toll
    bridge.

    We use the metaphor of an ecosystem a lot these days when discussing
    technology and media -- too often, probably, without thinking -- but
    in this case, it's remarkably apt:

    -- The emergence of the iPad, with its big screen, ease of use and
    customers ready and willing to pay for content, is like a new food
    source. The animals flock to it. Dominant species stake their
    positions, and new ones emerge.

    -- But it turns out that this new food source has also helped spawned
    a new predator that partially defends it. That's Apple's in-app
    purchasing rules. For a brief time it looked like the predator would
    wipe out a huge swath of the other species, but now they've struck an
    uneasy balance.

    -- Now all the species are swiftly adapting to the new environment. It
    won't take long to see which adaptations turn out to be most
    advantageous in the near-future, but their long-term effects will
    probably still be unknown for years to come.

    With that uncertainty in mind, I'll offer a slightly left-field
    prediction: Apple's new rules haven't knee-capped Amazon in the
    slightest. Far from it.

    In fact, Apple's given them a gift -- and many other companies too,
    some of which may not even exist yet. To understand why, you have to
    read the whole text of Amazon's statement today announcing the changes
    to its iOS app (emphasis mine):

    "We wanted to let you know that we've updated our Kindle app for iPad,
    iPhone, and iPod touch. The big change is that you can now use the
    Kindle app to read over 100 Kindle newspapers and magazines including
    the Economist, as well as share favorite passages from your reading
    via Facebook and Twitter. In order to comply with recent policy
    changes by Apple, we've also removed the "Kindle Store" link from
    within the app that opened Safari and took you to the Kindle Store.

    "You can still shop as you always have -- just open Safari and go to
    www.amazon.com/kindlestore. If you want, you can bookmark that URL.
    Your Kindle books will be delivered automatically to your iPad, iPhone
    or iPod touch, just as before."

    You could argue that that's just putting lipstick on a pig -- Amazon
    burying the news that it's killed its Kindle Store link behind some
    flashy new features.

    But I think it's bigger than that. Publishers now have a much better
    reason to partner with Amazon in addition to or rather than Apple for
    periodical sales. Periodicals used to be completely absent from
    Kindle's iOS apps. I'm sure that wasn't Amazon's decision --
    publishers didn't need Amazon to easily get their content on the iPad.
    Now, Amazon looks a lot more attractive.

    Also -- sotto voce -- if more customers start using Kindle to read The
    Economist (or whatever) on the iPad, why wouldn't they read the same
    media on a future Amazon tablet -- that mythical device that has now
    unofficially claimed the "Unicorn" mantle the iPad had in 2009?

    People love buying things on their iPads, and they don't much care
    where and how they do it, so long as it's easy and they can find what
    they want. It's the closest thing we've ever come to having a magazine
    become a catalog, and a catalog become a store.

    That's the lure of selling through Apple -- but not only Apple. With
    its new rules, Apple's made it somewhat more difficult for anyone
    selling content for the iPad to do it from the iPad.

    Apple is willing to be the portal for those sales, but on its own
    terms -- and those are tough for most publishers to swallow. They can
    use their own web sites and control their own destinies, but that's
    slow and more importantly, cumbersome for customers who would
    overwhelmingly rather pay for and read content in as small a number of
    places as possible.

    So who wins? Amazon wins -- because it has one web store where you can
    buy all your newspaper and magazine subscriptions and your books.
    Flipboard wins -- because it can handle all of the revenue and
    advertising deals on the back end, where the customer doesn't have to
    worry about them, and show readers high-quality content from magazines
    and the web.

    Google wins, maybe -- if it can get anyone interested in OnePass and/
    or sell content to its Android base the way Apple can to its own.

    Anyone wins who can provide a unified portal for both customers and
    publishers to manage content for tablets and crucially, a great
    experience for readers. Apple may own the app store and the hardware,
    but that doesn't mean they're the only game in town.
    RichA, Jul 27, 2011
    #1
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  2. RichA

    Ray Fischer Guest

    Re: Apple's greed drives major retailers from app store - Rich turns communist

    RichA <> wrote:
    >(WIRED) -- We all knew that once Apple starting enforcing new rules
    >for in-app purchases, it would change how media companies do business
    >on the iPhone and iPad.


    It's called "capitalism".

    Quit whining when you get what you demand.

    --
    Ray Fischer | Mendocracy (n.) government by lying
    | The new GOP ideal
    Ray Fischer, Jul 28, 2011
    #2
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  3. RichA

    Ray Fischer Guest

    Re: Apple's greed drives major retailers from app store - Rich turns communist

    Rich <> wrote:
    > (Ray Fischer) wrote in news:4e30fbe3$0$2149
    >> RichA <> wrote:
    >>>(WIRED) -- We all knew that once Apple starting enforcing new rules
    >>>for in-app purchases, it would change how media companies do business
    >>>on the iPhone and iPad.

    >>
    >> It's called "capitalism".
    >>
    >> Quit whining when you get what you demand.

    >
    >Hey Ray the Retard is defending capitalism instead of blowing the socialist


    Rich the rightard gets cranky when it's pointed out that he's a crazy
    communist.

    --
    Ray Fischer | Mendocracy (n.) government by lying
    | The new GOP ideal
    Ray Fischer, Jul 29, 2011
    #3
  4. RichA

    PeterN Guest

    Re: Apple's greed drives major retailers from app store - Rich turnscommunist

    On 7/28/2011 11:23 PM, Rich wrote:
    > (Ray Fischer) wrote in news:4e30fbe3$0$2149
    > $:
    >
    >> RichA<> wrote:
    >>> (WIRED) -- We all knew that once Apple starting enforcing new rules
    >>> for in-app purchases, it would change how media companies do business
    >>> on the iPhone and iPad.

    >>
    >> It's called "capitalism".
    >>
    >> Quit whining when you get what you demand.
    >>

    >
    > Hey Ray the Retard is defending capitalism instead of blowing the socialist
    > trumpet! Better be careful, your comrades and fellow travelers in the
    > party will be upset.



    Coming from someone whose postings trumpet the communist cause, that's
    actually funny.

    --
    Peter
    PeterN, Jul 29, 2011
    #4
  5. RichA

    RichA Guest

    Re: Apple's greed drives major retailers from app store - Rich turns communist

    On Jul 29, 8:44 am, PeterN <> wrote:
    > On 7/28/2011 11:23 PM, Rich wrote:
    >
    >
    >
    >
    >
    >
    >
    >
    >
    > > (Ray Fischer) wrote in news:4e30fbe3$0$2149
    > > $:

    >
    > >> RichA<>  wrote:
    > >>> (WIRED) -- We all knew that once Apple starting enforcing new rules
    > >>> for in-app purchases, it would change how media companies do business
    > >>> on the iPhone and iPad.

    >
    > >> It's called "capitalism".

    >
    > >> Quit whining when you get what you demand.

    >
    > > Hey Ray the Retard is defending capitalism instead of blowing the socialist
    > > trumpet!   Better be careful, your comrades and fellow travelers in the
    > > party will be upset.

    >
    > Coming from someone whose postings trumpet the communist cause, that's
    > actually funny.
    >
    > --
    > Peter


    Hardly. My argument isn't really with Apple (though any company who
    produces a device that has to be thrown out when the battery dies
    (first iPod) can't be all that good) it's with the zombies who buy
    their gear.
    RichA, Jul 29, 2011
    #5
  6. RichA

    PeterN Guest

    Re: Apple's greed drives major retailers from app store - Rich turnscommunist

    On 7/29/2011 9:05 AM, RichA wrote:
    > On Jul 29, 8:44 am, PeterN<> wrote:
    >> On 7/28/2011 11:23 PM, Rich wrote:
    >>
    >>
    >>
    >>
    >>
    >>
    >>
    >>
    >>
    >>> (Ray Fischer) wrote in news:4e30fbe3$0$2149
    >>> $:

    >>
    >>>> RichA<> wrote:
    >>>>> (WIRED) -- We all knew that once Apple starting enforcing new rules
    >>>>> for in-app purchases, it would change how media companies do business
    >>>>> on the iPhone and iPad.

    >>
    >>>> It's called "capitalism".

    >>
    >>>> Quit whining when you get what you demand.

    >>
    >>> Hey Ray the Retard is defending capitalism instead of blowing the socialist
    >>> trumpet! Better be careful, your comrades and fellow travelers in the
    >>> party will be upset.

    >>
    >> Coming from someone whose postings trumpet the communist cause, that's
    >> actually funny.
    >>
    >> --
    >> Peter

    >
    > Hardly. My argument isn't really with Apple (though any company who
    > produces a device that has to be thrown out when the battery dies
    > (first iPod) can't be all that good) it's with the zombies who buy
    > their gear.


    If I felt like it I could compare some of your statements with sections
    of the Communist Manifesto, and/or Das Kapital. There is a remarkable
    similarity.

    --
    Peter
    Muttering something about a rose......
    PeterN, Jul 29, 2011
    #6
  7. RichA

    nospam Guest

    Re: Apple's greed drives major retailers from app store - Rich turns communist

    In article
    <>,
    RichA <> wrote:

    > Hardly. My argument isn't really with Apple (though any company who
    > produces a device that has to be thrown out when the battery dies
    > (first iPod) can't be all that good) it's with the zombies who buy
    > their gear.


    bullshit. ipods do not need to be thrown out when the battery dies.

    there are ipod replacement batteries available in stores. i've seen
    them in microcenter and amazon has them too.

    it might even set you back a whopping two dollars:

    <http://www.amazon.com/580mah-Battery-replacement-Tools-Video/dp/B002SNC
    QLI/ref=sr_1_3?ie=UTF8&qid=1311960333&sr=8-3>
    nospam, Jul 29, 2011
    #7
  8. Re: Apple's greed drives major retailers from app store - Richturns communist

    PeterN <> wrote:
    > On 7/29/2011 9:05 AM, RichA wrote:



    >> Hardly. My argument isn't really with Apple (though any company who
    >> produces a device that has to be thrown out when the battery dies
    >> (first iPod) can't be all that good) it's with the zombies who buy
    >> their gear.


    > If I felt like it I could compare some of your statements with sections
    > of the Communist Manifesto, and/or Das Kapital. There is a remarkable
    > similarity.


    Nope. There is serious thought and observation inside the
    Manifesto and the Kapital. Such is lacking in RichA. He at
    best apes something he doesn't understand.

    -Wolfgang
    Wolfgang Weisselberg, Aug 8, 2011
    #8
  9. RichA

    PeterN Guest

    Re: Apple's greed drives major retailers from app store - Rich turnscommunist

    On 8/8/2011 4:35 PM, Wolfgang Weisselberg wrote:
    > PeterN<> wrote:
    >> On 7/29/2011 9:05 AM, RichA wrote:

    >
    >
    >>> Hardly. My argument isn't really with Apple (though any company who
    >>> produces a device that has to be thrown out when the battery dies
    >>> (first iPod) can't be all that good) it's with the zombies who buy
    >>> their gear.

    >
    >> If I felt like it I could compare some of your statements with sections
    >> of the Communist Manifesto, and/or Das Kapital. There is a remarkable
    >> similarity.

    >
    > Nope. There is serious thought and observation inside the
    > Manifesto and the Kapital. Such is lacking in RichA. He at
    > best apes something he doesn't understand.
    >


    I as referring to the effect of his statements. I agree he probably
    doesn't comprehend the social effect of his words.


    --
    Peter
    PeterN, Aug 9, 2011
    #9
  10. RichA

    Charles Guest

    Re: Apple's greed drives major retailers from app store - Rich turns communist

    "PeterN" wrote in message
    news:4e4072c2$0$12479$-secrets.com...

    On 8/8/2011 4:35 PM, Wolfgang Weisselberg wrote:
    > PeterN<> wrote:
    >> On 7/29/2011 9:05 AM, RichA wrote:

    >
    >
    >>> Hardly. My argument isn't really with Apple (though any company who
    >>> produces a device that has to be thrown out when the battery dies
    >>> (first iPod) can't be all that good) it's with the zombies who buy
    >>> their gear.

    >
    >> If I felt like it I could compare some of your statements with sections
    >> of the Communist Manifesto, and/or Das Kapital. There is a remarkable
    >> similarity.

    >
    > Nope. There is serious thought and observation inside the
    > Manifesto and the Kapital. Such is lacking in RichA. He at
    > best apes something he doesn't understand.
    >


    I as referring to the effect of his statements. I agree he probably
    doesn't comprehend the social effect of his words.

    Actually, he is an adept social engineer who obviously manipulates many who
    react to him.
    Charles, Aug 9, 2011
    #10
  11. Re: Apple's greed drives major retailers from app store - Richturns communist

    PeterN <> wrote:
    > On 8/8/2011 4:35 PM, Wolfgang Weisselberg wrote:
    >> PeterN<> wrote:


    >>> If I felt like it I could compare some of your statements with sections
    >>> of the Communist Manifesto, and/or Das Kapital. There is a remarkable
    >>> similarity.


    >> Nope. There is serious thought and observation inside the
    >> Manifesto and the Kapital. Such is lacking in RichA. He at
    >> best apes something he doesn't understand.


    > I as referring to the effect of his statements.


    Starting an (eventually failed) communist world scale experiment
    and other, small scale, much more successful arrangements, as
    well as helping to remove the worst parts of capitalism ... I
    doubt that you really think RichA's statements to have such effects.

    And they don't have much effect.


    > I agree he probably
    > doesn't comprehend the social effect of his words.


    He doesn't comprehend what social effects his words would have
    if anyone listened to them in earnest.

    -Wolfgang
    Wolfgang Weisselberg, Aug 13, 2011
    #11
  12. Re: Apple's greed drives major retailers from app store - Richturns communist

    Charles, please do use quote signs on the text you quote. I have
    added them in the correct places, to make it clear who said what.


    Charles <> wrote:
    > "PeterN" wrote in message
    > > On 8/8/2011 4:35 PM, Wolfgang Weisselberg wrote:


    > >> Nope. There is serious thought and observation inside the
    > >> Manifesto and the Kapital. Such is lacking in RichA. He at
    > >> best apes something he doesn't understand.


    > > I as referring to the effect of his statements. I agree he probably
    > > doesn't comprehend the social effect of his words.


    > Actually, he is an adept social engineer who obviously manipulates many who
    > react to him.


    Manipulates them to responding, not more. Or maybe they are just
    playing with him.

    -Wolfgang
    Wolfgang Weisselberg, Aug 13, 2011
    #12
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