Lots of hullabaloo about Apple's iOS subscription product. The basics - everyone pays 30%, you can't charge more on the iPhone for the product than you do on other platforms, and you can't link out from the app to the browser to handle subscriptions without Apple being in the middle. It's not even clear that apps will be able to just post a message telling people to create an account from their computer and then come back to their iPhone and use the app. That's all well and good for apps that have zero marginal costs. But for some content providers, specifically the music streaming services like MOG, Rhapsody, Rdio, etc., this is crushing. It effectively pushes them off the iPhone, iPad and other iOS devices. They've been keelhauled. That's because they don't have 30% margins to begin with, the labels and publishers take somewhere around $8 of the $10 subscription fee. We saw Rhapsody balk at Apple earlier today. On Wednesday morning, we hear, most of the online music streaming services will be issuing a joint statement condemning the policy.
Source: http://feedproxy.google.com/~r/Techcrunch/~3/Xnyo6z884Jk/
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