There is the feel of rebellion in the air opposing Apple’s in-app policies for subscription services. Rhapsody, the streaming music service, is standing out in the open in protest against it. Other publishers are considering their options for action, not excluding court action.
This all follows Apple’s launch of the new structured program on Tuesday. Everyone is up in arms over the pinch from including in the applications the ability to sign up for subscriptions. That pinch is Apple’s 30% commission for every customer signed up for any company’s subscription through that company’s application.
Apple has carefully banned workarounds. When a subscription offer is made outside the application, an equivalent or better offer is required to be made through the app. Forget trying to link to any place outside the application for customers to sign up, either.
Online Publishers Association, which is a company speaking for Bloomberg, Time, and many other media companies, stated grave apprehension over the new program policies. Sony also referred to Apple’s tactics as hostage holding.
WSJ warned that Apple is dangerously close to answering for antitrust practices in this matter, since they have placed unfair and anticompetitive limitations on the pricing.
John Irwin, president of Rhapsody, gave an even stiffer statement about Apple’s practices, “It is economic suicide,” going on to suggest there would be court action. “We cannot offer our product through Apple’s store with their 30% commission and the fees we shell out already to publishers, labels, and artists. It makes it impossible. Compare Apple’s 30% fee to a normal 2.5% credit card fee. It is robbery.”
The last thing he says, though, is the most telling, “We will band together and discuss eye-to-eye with others threatened with this rape to find a suitable business and legal reaction to Apple’s choices.”
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