Apple Subscriptions Will Affect Amazon

Just two weeks after the launch of The Daily, Apple has announced a new subscription plan available to content publishers.

Computerworld points out: “The new model will affect Amazon.com and other booksellers with iPhone, iPod Touch or iPad applications, an Apple spokeswoman said…Publishers and content sellers must remove any links within their apps to outside-the-App Store purchasing options, Apple said, a requirement that means Amazon.com must eliminate the link to the Kindle Store that it currently provides in its iPhone, iPod Touch and iPad apps.”

Under the terms of the subscription model, Apple will handle the billing and will keep a 30% cut when they bring in a new subscriber.  Steve Jobs released this statement: “Our philosophy is simple—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. 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.”

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