Tighter Controls in the App Store?
Apple’s control in the App Store has been a bone of contention for many developers and it sounds like things are about to get worse for some. According to a report in The New York Times, Apple recently told some app developers they can no longer sell content within their apps or allow customers to access purchases made outside the App Store.
Sony executives were among those contacted and told that they would no longer be allowed to have in-app purchases for content that does not go through Apple and the App Store. Steve Haiber, President of Sony’s Digital Reading division, said the changes could impact how Sony distributes content.
If Apple does follow through with such changes, it could also impact companies like Amazon, Barnes and Noble and other publishers who sell content through their apps. All of these companies currently offer content (via their apps) which does not flow through the App Store and consequently Apple makes no money on the sale. Apple normally collects 30% from all transactions so it’s easy to see why the company would be interested in plugging any revenue holes.
If Apple does implement the rumored changes to the App Store policy, they could see a bump in revenue but it could also shift developers and publishers away form Apple’s ecosystem to alternative mobile ecosystems like Android, RIM or even Microsoft. We would be surprised to see Apple implement strict restrictions on in-app purchases not flowing through the App Store.
Apple has been struggling to come up with business models that allow publishers to offer subscription services at competitive rates. These rumored changes could be part of Apple’s larger plan to get things moving and generate even more business.




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