Printed from http://www.electronista.com

FT still holding hope it can avoid iTunes subscription rule

updated 09:20 am EDT, Mon April 4, 2011

FT still loathe to go through iTunes subscriptions

The Financial Times on Monday further established a possible impasse on iTunes subscriptions through a new interview. Managing director Rob Grimshaw said that direct subscriptions were "the core of our business model" and still didn't want to follow Apple's new rule requiring an iTunes royalty cut with reduced subscriber data. He insisted to Reuters that the FT's parent company Pearson had a "great relationship" with Apple, but he was prepared to drop the iPad to go to Android or another platform if negotiations didn't pan out.

"If it turns out that one or another channel doesn't mix with the way we want to do business, there's a large number of other channels available to us," he said.

Unlike some outlets, the financial paper believed it had more to lose from going Apple's route. Without as much of a presence on the web, it reportedly needs the more targeted advertising to help make money.

Apple has insisted that it needs a 30 percent royalty cut mirroring that from its media and book stores, but it has faced challenges unique to subscriptions. Unlike the iTunes and iBooks deals, the subscription rules only came in after many developers already had businesses in place. Moreover, many publishers also don't necessarily have enough revenues to afford the royalties where it was already budgeted in for music, movies, and books.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. Peter Bonte

    Fresh-Faced Recruit

    Joined: Aug 2001

    -1

    whiners

    Remove the buy-button in the app and manage the subscriptions direct, problem solved. But if direct subscriptions means selling it in the app or via the app-store you need to play by Apple's rules. Then no spam-data for you.

  1. bjojade

    Fresh-Faced Recruit

    Joined: Jun 2007

    +1

    What costs?

    I don't understand the complaint. The more customers you have, the more profit you make. Do you REALLY think that people with iPads are going to get rid of them and get Androids if YOUR app goes away? I highly doubt it.

    The interesting thing about selling apps is that your production costs have nothing to do with how many users there are. An app that costs $100 and sells 10,000 times makes a million dollars. (700,000 after Apple's cut) There are very few apps that people would pay that kind of money though. Getting 10,000 downloads at that price would mean a pretty hefty app. Let's say you offer the SAME app for $10 and now 100,000 people download it. That's going to give you a much larger customer base, which is far easier to attain. Again, you've made that million dollars in sales, $700,000 in profit, just attracting MORE customers. It's a no brainer. Also, at $10, people are going to be far more forgiving of any shortcomings in the app than they would be if it was a $100 app. Also, if you have advertisements in that app, you are going to make far more revenue off of 100,000 customers than you would with 10,000.

    In a print world, each customer had a cost associated with the customer. In the digital world, that cost is eliminated. Totally different game.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +1

    Re: What costs?

    Since when did they say they were even charging for the app?

    And while your numbers are great, they're just fictitious. Except for a few games, very few apps are getting 100,000 buyers. And not at $10, since you should hear people complain about stupid stuff when it comes to $5 apps. To the iPhone audience, $10 is like $100. Extravagant. And then you can be sure no one is forgiving the shortcomings.

    But all of that is immaterial, since the app isn't what they're trying to sell. It's the subscriptions, the content. The actual material that makes the 'app' as good or bad as it will be construed. The part that Apple wants a cut of, even though they provide none of the content, just delivery.

    Maybe Adobe should start charging them for every page they create for the newspaper or magazine in Adobe CS? Seems fair, right?

    In a print world, each customer had a cost associated with the customer. In the digital world, that cost is eliminated. Totally different game.

    It's not eliminated. It's 30% off the top for each subscription. Or did you miss that point. Apparently Apple feels they deserve even more than what the publication would pay to print and deliver the paper version.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    +2

    Re: whiners

    Remove the buy-button in the app and manage the subscriptions direct, problem solved.

    Sorry, Apple won't allow that. If your app is going to be serving up subscription content, you have to let Apple sell it too. It isn't just "Get rid of the button". Doesn't matter if you're serving up all the content directly from your servers, and doing all the billing work yourself.

    But if direct subscriptions means selling it in the app or via the app-store you need to play by Apple's rules. Then no spam-data for you.

    They don't use the data for spam. They use it for marketing, to direct ads, determine content, etc.

    And bear in mind that there's nothing that keeps Apple from using your information for their purposes. That's why iAd has such an advantage over the other providers. Apple knows who you are and what to feed you, but they don't allow anyone else to have that info.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Lemur BlueDriver

"Oh no, the check engine light is on…again! What one of the hundreds of reasons could it be this time? Probably going to cost a fort ...

Sponsor

toggle

Most Commented

 
toggle

Popular News