Apple sets deadline for Amazon's Kindle app to change - They want 30% per book
tecca.com
tecca.com
http://online.wsj.com/article/SB1000142405274870477560457612...
As far as we know, Apple has not directly set a deadline for Amazon. In fact, there's no knew information other than the date: meaning there's still a lot of questions about the subscription rates and the actual requirements Apple will have in place.
Personally, I can't see how a 30% fee for what amounts to little more than payment processing can stand. It's one thing to charge the fee for app distribution and marketing in the store. It's another to handle on billing at which even 10% would seem rather high.
I don't see this lasting. Either publishers will charge an extra fee on iPad users and/or Apple will be taken to court for anti-trust, probably in Europe first.
But at least Apple is only taking %30. Amazon has completely excluded Apple from selling books via the iBookstore app on the kindle. In fact, you can't even read iBookstore books on the kindle because Amazon doesn't allow Apple to produce an app for the kindle.
I'd like you to point out any evidence that Amazon has excluded or rejected Apple's application, because I've never heard anything of the sort.
There are plenty of bookstores that sell books that work perfectly well on the Kindle without having anything to do with Amazon. Sci-Fi AZ is just one such independent bookstore: http://www.scifi-az.com/
Depends on how they define a "generic reader" doesn't it?
Amazon will either quit the AppStore in protest, and hope consumer protest will make Apple change their minds, or they'll start charging $14-15 for books instead to cover the 30% cut.
There is no way for Amazon's Kindle app (and other similar book selling apps) to continue on iOS under the terms as laid out in the article. Amazon will have to create a web app that functions as a Kindle Reader in order to let their content remain readable on iOS (and that's exactly what I'd start doing now if I were Amazon, if such an app weren't already in development).
I'm a big fan of O'Reilly's multi-format approach. This is the correct end-run around proprietary stores.
Regarding this issue in particular, I don't see the problem with Amazon and others kicking their users out to Safari to do purchases, and thus as the purchase wouldn't happen "in app" it wouldn't be covered by this.
Not as smooth of a purchase experience, but not impossible to deal with.
The other alternative would be to tack on a 30% surcharge on any books bought directly through the app.
At least as far as I can tell from this article and others, this is one of the things that Apple wants to disallow. At least there must also be an option to buy using the Apple system, giving Apple a 30% cut. And I highly doubt that Apple's going to allow an app that says "click here to buy through Apple, click here to buy through Amazon for 30% less".
At most, maybe a "Visit Amazon Website" button that goes to the home page, then after Apple approves the app have their site detect iPad users linked from the app, jump them directly to the Kindle bookstore. That's the best end-run I could come up with.
This is different from Kindle, where they write a player for every platform. But is what you get if you sell through Apple's store for Apple's reader.
O'Reilly wins with their deals. I buy books I wouldn't otherwise.
I bet broadcasters are glad Apple wasn't around when the first TVs were manufactured.
Apple doesn't have to write a player for every platform because epubs are an open standard.
But is there any big player in the ebook market which comes even close to Amazon (collection-wise) and sells non-DRMed books/PDFs? From what I've seen there are no viable alternatives for non technical reading... (and no, shopping at several small publishers' websites is not a viable alternative)
Unfortunately, if history is any indication, the last place this will happen is in school textbooks which is honestly where the ebook revolution should start.
I really don't think Apple would let people get away with such a little surcharge within their walled garden.
So if I buy one on my PC a while back, then go to my Kindle app on the iOS device and then Amazon has to hide it because it wasn't bought there?
This is actually Apple, which I own many products, being anti-competitive on allowing other bookstores at all besides iBooks.
This will force possibly the market to go more PDF and away from DRM, maybe a good direction in the end. Amazon should switch to PDFs. Then you can load those up in iBooks.
What makes iOS purchases different are two things:
1. Apple has oversight of content being sold (helps avoid malicious software in many cases, and age appropriate content).
2. Ease of use - one password to buy stuff, not multiple accounts everywhere.
That's what you get as a customer. As a developer, you don't have to deal with the payment processing and other consumer financial issues, to a great degree, and they provide marketing.
There's nothing to stop an end-run around any of this - you can still make totally open web apps, content in PDF and ePub formats, etc.
You just can't provide the identical guarantees Apple provides with the oversight of their store (which necessitate a locked down device and limitations on what 3rd parties can do outside of their system).
(edit: formatting fix)
I thought the whole point of this outrage was that Apple was trying to stop the end-run. This step isn't a complete blockage, but they're certainly trying to make it harder for customers to get content from outside and easier to get it through Apple's paywall.
Apple has little value add here and as their store grows, the long tail and new business models suffer due to there being only one store. AppleVAT is a good term for what they do. Their strategy is almost guaranteed to make the company less innovative.
So you mean now Apple is going to have to approve eBooks before they appear on the iOS Kindle app? Oh boy.
If it's (a), then ok. I wouldn't purchase through them, but some people might do so for the convenience (instead of starting safari and purchasing it that way). If it is (b), then as soon as there is a credible android tablet, then it's likely to be goodbye to the iPad for a number of book users. The advantage of Amazon is that while the content has DRMd for the end user, they can read it on a variety of devices. Also, the selection is excellent (not perfect, but for light reading, pretty good). I don't see Apple winning the content war on this one. I suppose Amazon could make a web-based kindle service (again, DRMd) that would could be logged in through one's amazon account and used through Safari. The experience wouldn't be as good, but it would still let people read content on an iDevice and screw Apple.
That is, so long as net neutrality remains. If they start doing packet introspection and charging based on destination or traffic type, well, that is going to be bad for all mobile users.
As for net neutrality, I'm viewing that as a mostly-lost battle at this point, until proven otherwise.
However, a main issue with this would be the limit space available via HTML5 databases on the ipad - afaik something like 25 megabytes.
HTML5 don't always play nice with app-switching either, but maybe I've just not used enough HTML5 "apps".
Apple has implemented a policy where by everyone who sells something through their app needs to provide the same set of products and services through In-app purchases. That means that the kindle app can maintain their current store but must also implement an in-app purchase alternative, powered by apple, and thus with Apple's 30% tax applied to it.
Something electronically distributed. If you buy a physical book via amazon, then they do not.
Actually amazon should make a "Screw the apple tax" bumper sticker, sell that and include various free kindle books with purchase of the bumper sticker.
Apple never really cared about their developers, which is evident in the way they are treating them.
The Express Editions of VS are a relatively recent phenomenon, and are crippled. Apple's tools are free and fully featured - paying gets you the ability to publish on their store.
I can tell you that myself and everyone I know would immediately drop the platform if that were to happen.
So they're definitely targeting books purchased off device.
There are also plenty of PDF readers in the store already (Goodreader, for example) that are independent of Apple's iBooks.
Unlike Sony, Apple isn't generally known for removing functionality from products after purchase...
* Leave the app as-is. (With what specific motive?)
* Jack up the prices. (Perhaps they'll include a notification when the user is on the relevant purchase page.)
* Leave the prices as-is and take the 30% hit.
* Let Apple kill the app.I find it a shame that there is so much focus on Apple devices due, it seems, almost exclusively the market buzz around their products. Competing platforms have similar user numbers, good technology, and far better market options as far as I am aware. That is a model I would like to see winning out over Apple's more restrictive platform.
Citation needed.
Also, though, the cost isn't just the Apple surcharge. It's the cost of changing their sales and distribution system to support sales through third-parties. Basically, Apple is asking Amazon to change the way they do business. That's not a very good deal for Amazon.
That was before the iPhone or Kindle came out, never mind the iPad. Interesting to see how these things develop.
Apple are canny about their relationships with content owners - I'm hesitant to believe that they'd attempt a flagrant "Apple tax". Many of their most important products - the iPhone comes to mind - have a relatively small slice of their market. In this atmosphere, it would be untenable to risk losing important content sources with exorbitant fees.
http://online.wsj.com/article/SB1000142405274870477560457612...
It seems pretty clear to me that 30% of all Amazon's iOS business would be a nice addition to anyone's bottom line, and Apple feel like they're in a position to take it.
It's a simple separation of concerns: if you're going to initiate inapp purchases that are completed in Safari, then to prove trustworthiness you need to offer purchases via Apple in parallel; if you're going to avoid Apple then you lose the privilege of making the purchase seem sanctioned by the iOS ecosystem.
How big is 30% of Amazon's ebook sales to iDevices really? I'm betting less than what Amazon's presence means as a boost to Apple unit sales. The parallel purchase option is really a sign of more flexibility from Apple.
But also clearly not in my interest as a putative Apple customer. (Alas, I fear I am not in Apple's target market.)
I hope this motivates amazon to support the jailbreaking community and release a new amazon store, but really how this will pan out is apple will get like 5% of amazon sales on top of the fees for CC processing.
But it strikes me as an unnatural state of affairs. This idea that I can make a computational device, then own the right for you to put material on that device, is technically correct -- if you think of the iPad as some huge proprietary version of a CD player.
But if you think of it an extension of your brain -- as a prosthesis which helps you share commonly understood experiences in common formats, which it is -- then Apple is basically saying it has control over what you think. That it deserves a cut for any experience you have.
Certainly it's still more of a player than a mind-extension device, but this line will get more and more blurry. It's already making many uncomfortable. My belief is that some sort of change in law is required to clear up this confusion. An iPad is not a record player.
Right, because corporations never do anything illegal in any country.
Microsoft has been fined hundreds of millions for including a browser with their OS (not even restricting other browsers). Something Apple and every other OS manufacturer does as well. The problem is, neither Microsoft, nor Apple cares about fines of that scale.
I am not a lawyer.
1. iTunes file sync lets you put arbitrary files in there. I put many pdfs that I bought from pragmatic programmers in iBooks. Apple doesn't get a cut. iTunes also lets you sync any file type with any app that can read it (And apple lets free reader apps of all types in the store, it just has a restriction on operating a store via the app.)
2. Apple has provided a mechanism and gone into great lenghts to educate developers on how to build web apps that live and run form the device. These applications can have local storage, have an icon just like all the other apps, and can be connected to the net or run independant of the net. You could write a porn app that lives on the device and, unless apple heard about your website, apple would never know.. and they can't stop you either.
Now consider this: The Amazon Kindle operates as if amazon owns the right to control what material you put on it, right? Apple is not allowed to sell kindle books. Kindle books are an arbitrary proprietary format...while Apples' bookstore uses the open standard epub mechanism.
You can also email an epub to Amazon and it will come back immediately in Kindle format and this method also works well. There is no charge for wifi but there is a charge for cellular delivery.
I think the Kindle is admirably compatible with third party publishers or self published material, much more than Apple's locked down and toll collected ecosystem.