Apple Unveils Subscription Service On App Store

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Apple unveiled a subscription service on Tuesday for digital newspapers and magazines purchased through its online App Store.The company said that music and video subscriptions will also be available through the App Store and will be subject to the same terms and conditions as newspaper and magazine subscriptions.Apple will take a 30-percent cut of the revenue for subscriptions sold through applications featured in its App Store.However, there will be no revenue sharing for digital subscriptions sold through a publisher’s own website.But Apple said in a statement “that same subscription offer must be made available, at the same price or less” to customers who wish to subscribe from within an application.
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Apple also said publishers will no longer be allowed to provide links in their applications to outside websites “which allow the customer to purchase content or subscriptions outside of the app.””Our philosophy is simple,” Apple chief executive Steve Jobs said in a statement.”When Apple brings a new subscriber to the app, Apple earns a 30-percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing,” Jobs said.”All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app,” he said. Jobs said the subscription service “will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod Touch and iPhone.” The Cupertino, California-based company said that publishers will set the price and length of subscriptions. Customers will be automatically charged through their online account based on the length of the subscription selected. Apple also addressed the issue of how much data on subscribers would be shared with publishers. The company said that customers who purchase a subscription through the App Store will be given the option of providing publishers with their name, email address and zip code when they subscribe. “Publishers may seek additional information from App Store customers provided those customers are given a clear choice, and are informed that any additional information will be handled under the publisher’s privacy policy rather than Apple’s,” Apple said. The Daily first offered Apple’s subscription service, which is a digital newspaper for the iPad tablet computer that launched earlier this year. Most major U.S. newspapers and magazines have already created paid or free versions of their publications for the iPad and The New York Times plans to begin charging readers soon for full access to NYTimes.com.
source:www.forcetoknow.com

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