RIP Pandora, Kindle on the iPhone
whydoeseverythingsuck.com
whydoeseverythingsuck.com
One could argue that since Apple must provide storage, infrastructure, and man-hours for all the apps that are purchased for iOS devices, that they are well within their rights to take a cut of App purchases. But what justification do they have for demanding the same regarding content consumed by said apps? They do not store the content. They do not filter the content. They do not provide the bandwidth that delivers the content. They are not liable for what the content itself is. What possible justification could they have for doing this?
This is very nearly the same as saying that Sony should get a cut of all ad revenue for anything viewed on their TVs.
Except Apple doesn't have anywhere near the market share needed for the legal definition of "trust".
No. Apple has plenty of competition for the app store. First of all from the Android app store. Second, the entire internet is competition for the app store.
- If you're an existing, popular service on iOS, you get grandfathered in, and you get to keep your current way of doing things so long as you don't rock the boat.
- If you are a new application/service, you have to pay 30%. No workarounds, no exceptions.
My theory is this: if Apple tightly enforces the policy on services customers already know and love, at least some will be forced to remove their offerings from iOS. Existing users are disappointed, and are now (a) upset with Apple, and (b) incentivized to go buy an Android.
On the other hand, if a service is small and not yet widespread, most users won't be disappointed if that service can't afford to put itself on the iPhone, and there are plenty of other apps/services to choose from, so no incentive to leave the iOS walled garden.
I wonder if they could just make it as a "consumption only" device... like don't have a link to get a new customer, only allow people to subscribe through the web.
My understanding is that the terms of the App Store explicitly forbid this.
http://www.amazon.com/gp/feature.html?ie=UTF8&docId=1000...
Looks like it was made for touch devices. I wonder if Amazon's about to pull their Kindle app.
It could happen down the line with a solid web experience as the starting point.
This move immediately makes many subscription billing models that touch iOS uneconomical. You can't give up 30% of what you bill your customers in perpetuity. The long-established economic model for customer acquisition is to pay a cost of customer acquisition, and then you have a calculation to determine time to customer profitability. You have to have some astonishing margins to be able to give away 30% FOREVER to Apple and make that work. I can't imagine it works for Netflix--I think they are paying ~$60 per customer and probably seeing profitability in 6-12 months. Can they really have margins great enough for them to justify participating in a market with rents like this?
I suppose another way to see it is that these customers shared with Apple will be MUCH LESS valuable to companies.
I'd be interested to see what the numbers look like for Dropbox, Tumblr, LinkedIn, etc. Everyone with a lower-margin model is hosed. Does anyone have some real-world acquisition costs they've run against this change?
What do you think your average iPhone or iPad owner is going to do in response to this change - buy a Kindle or Android device so they can keep using Pandora/Kindle, or just buy stuff from Apple's services instead?
All snark aside, it's never a sound business model to hand a possible competitor the "off" switch for your business.
(Hell, it'd pay off my -iPad- in a couple of years, assuming I converted all my paper reading to ereading)
This directly mirrors how the OS manages suspended/background apps, but with the critical difference that the OS specially treats apps which are registered for different background services, like background audio playback, avoiding eviction for things like this which are effectively under active use, even when they are not on-screen.
The solution, I'd argue, is for Apple (and the web working groups, in general) to bring the same sorts of OS design concerns to browsers—in this case, richer interfaces for more intelligent handling of background tasks by both the runtime and the tasks, themselves.
I am outraged, fuming really. I read my Kindle books on my iPad all the time.
If they do not reverse this, this will all but guarantee that I am switching to an Android tablet as soon as it becomes a viable contender. Honeycomb can't get here soon enough.
http://developer.apple.com/library/safari/#documentation/iPh...
Developers are free to choose whether or not they like the terms of the platform.
Anyway, I find it very odd to speak of Apple's "rights" whilst simultaneously ignoring those that actually have rights: the users. The philosophy that organizations can have rights independent of and greater in extent than any of its constituent persons is, to say the least, bizarre to me.
Oh, and as for liking the terms of the platform: "I am altering the deal. Pray I don't alter it any further." (http://www.imdb.com/title/tt0080684/quotes?qt0358500)
Also, there is no such thing as user rights. The only right a user has is to sue Apple if he/she thinks Apple is in violation of its explicit written contract with any individual user. Before purchasing an Apple device, a customer knows that he/she may be "locked" out of the device, but he/she buys it anyways. A user knows all the conditions before the purchase. Apple does not guarantee that after you buy a device they will always provide a great variety of apps at a price you find acceptable. Apple does not guarantee a wonderful service, it does not guarantee great partnerships with developers, it does not even guarantee that it will be in business in a few months. All of that is perfectly clear to anyone who buys a device in almost any market.
Apple also has no obligation whatsoever to help any of its competitors innovate. If they cannot "innovate" without Apple, it is their problem to solve, they have to be smarter and more resourceful, create something on their own or convince Apple to work with them by demonstrating a compelling product. This is how a free economy operates.
What a user can do is vote with his/her wallet.