Lyang Hsueh's Blog

The journey is the reward.

My Thoughts on Apple Subscriptions

Apple launched its in-app subscription plan, after the launch of Rupert Murdoch's iPad only magazine The Daily. I have read the official statement from Apple. The service now is open to all content providers, for each subscription sold through the app, Apple takes a 30% cut. Publishers can set the price and length of a subscription, also can offer subscriptions through their own existing websites but would be required to offer those same terms to anyone signing up through Apple.

Subscriptions purchased from within the App Store will be sold using the same App Store billing system that has been used to buy billions of apps and In-App Purchases. Publishers set the price and length of subscription (weekly, monthly, bi-monthly, quarterly, bi-yearly or yearly). Then with one-click, customers pick the length of subscription and are automatically charged based on their chosen length of commitment (weekly, monthly, etc.). Customers can review and manage all of their subscriptions from their personal account page, including canceling the automatic renewal of a subscription. Apple processes all payments, keeping the same 30 percent share that it does today for other In-App Purchases.

Okay, the rules seem fair enough. Problem? At first, most publishers are free to offer subscription elsewhere, for example through their websites, right? If developers offer subscriptions elsewhere, they have to offer them inside their iPad and iPhone apps too, and at the same price. Developers are also forbidden from including links inside their app to purchase content or subscriptions outside the app.
...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.
In other words, Apple won't allow you to encourage your iOS customers to pay for your subscription service outside the App Store, and you are not allowed to link to your own signup page. The only way for users to sign up to pay for your web app, once they're inside the iOS app, is by giving Apple 30%. Many of web and SaaS apps also build iOS apps to complement their free plans, aiming to their customers into upgrading to a paid subscription. Now If you want your customers to upgrade in-app, Apple is going to tax you 30%.

Does Apple deserve the same cut from publishers who are simply augmenting their offering with iOS apps? Definitely not.