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ECT News Community   »   MacNewsWorld Talkback   »   Re: Some Content Producers May Resist Apple's Pied Piper Tune

Re: Some Content Producers May Resist Apple's Pied Piper Tune
Posted by: Erika Morphy 2011-02-16 15:09:13
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Apple has launched its long-rumored subscription service for publishers and content producers: As feared, the company is taking a 30 percent stake of any sales that go through its platform. The new service makes it much easier for consumers to buy content within the app instead of via the Web -- a move that could have significant ramifications for etailers such as Amazon. Participating content producers must agree to make all of their subscriptions available via an in-app purchase. Companies can still offer identical deals on their websites, but they cannot make better offers. Nor can companies provide a link to their websites through the app.

Wish there were more credible and intelligent sources of information
Posted by: DannoBonano 2011-02-16 15:30:45 In reply to: Erika Morphy
""Basically the iPad -- and now this subscription model -- makes all publishers merely a node inside the Apple environment," said Outbrain CEO Yaron Galai. "Any publisher that commits itself to this model is committing itself to being a node.""

Obviously Outbrain's CEO isn't using his brain. Think of Apple as a virtual Walmart. That is, publishers pay Walmart for physical placement of their magazines AND a cut on sales. By Galai's logic, the publishes are merely a node inside Walmart or any other store. People actually read this stuff?

"Another point of contention is that Apple is putting control over customer data in the hands of the customer, rather than the publisher. Apple will share consumer data with the publisher only if the customer gives permission."

So Apple is improving things for customers. Making it easier to order subscriptions whenever they want right from their device. They are also upholding customer trust that their data isn't abused without their permission. All customers should be behind this.

"On the sidelines, though, are two specters that may cause Apple to soften its stance: Google (Nasdaq: GOOG), which not-so-coincidentally just rolled out its own subscription service with more generous terms for publishers; and the Justice Department, which may look at Apple's subscription service through an antitrust lens."

People, please pay attention. Google offers more generous terms for publishers. Why? Because they, themselves, are into selling or using as much of your personal information as possible. Give you a warm fuzzy? Thought not. As for antitrust, do people even understand what that is? It's like saying Walmart is antitrust because they want to sell at the lowest price but charge vendors for product placement and sales in their stores. If they can't be the lowest price, they punt the product out of their stores. Is that antitrust? Seriously, I wish people would think more before they throw big words like antitrust around.

""The real excitement for magazines is Honeycomb, which has been designed for tablets," Yudu CEO Richard Stephenson told MacNewsWorld."

First, Honeycomb isn't generating real excitement. It's better than Froyo but still is in its first version and infancy. Second, most people using Android expect to get everything for free. Third, the app stores aren't working that great and are fragmented. Fourth, Google doesn't have a nice ecosystem including payments to draw in customers. Fifth, Android manufacturers bastardize one another on their products and have very low margins. Not a great business model when a better alternative exists in the marketplace. See 30% of smartphone Android upgrades moving to iOS. Samsung's Tab is being returned by customers at a rate of 16%. Ouch. As well, it has sold very poorly. The Xoom is vapor until it comes out and will no doubt suffer as a first version device.

Here is another BLATANT lie in the article - from Yudu CEO Richard Stephenson:

"To recoup that 30 percent, he explained, a content provider would have to make an additional 43 percent in sales -- a gap that the iPad should help most content providers close, he said."

Unfortunately, Stephenson doesn't think. If he did he would realize that magazines don't make money on subscriptions which are designed to offset some circulation costs. They make their money on advertising. How much advertising they can charge is based on the number of subscriptions. On average, most decent magazines can make an additional $3-$4 per subscriber per issue. It is in their best interests to exploit the iOS platform to drive huge increases in subscribers.

Zombie alert
Posted by: JoeConsumer1 2011-02-17 07:00:26 In reply to: DannoBonano

And you all are cheering! What's wrong with you people? 10-15% is a commission. 30% is greedy RAPE. Apple should be ashamed. It's one thing to charge the 30% for in-app purchases.

The sick depraved part is the insistence on price-matching OUTSIDE, if one just goes to the web on a PC and orders service! The whole world just got a 30% price boost! What the heck is wrong with you people that you use the bogeyman of "personal info/Google" (a lie, they don't know WHO/WHAT you are online, just an ID#, juuust like apple) to cheer on a 30% upward price boost.

I guess it's true that Apple cheering section are a bunch of spoiled brats to whom paying 30% more starting some arbitrary day in 2011 is "no sweat!"... "Hey, it costs a lot less than my $50,000 BMW so what are you complaining about?!"

Well, the rest of the world is a bigger market than you spoiled brats, so let's see how "capitalism" plays out, shall we? I can't wait for the results of this greedy greedy decision to bite you greedy people in the butt.
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