Apple’s App Subscription Plan Makes Developers Give Them More Money

In today’s mobile device dominated world, publications and media providers have been turning more and more to subscriptions offered to their app customers in order to survive and grow. Well, to no one’s surprise, Apple wants a cut of the profits made through those apps. Apple has announced that it will require app developers to sell subscriptions directly through their apps first. Developers can then sell the subscriptions outside of the app, but only if Apple’s demands are met.

Here are the words, straight from Steve Jobs:

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.”

The news mostly affects developers: Apple takes a nice 30% of every subscription sold through an app or iTunes straight from developers. Now, this has no direct effects on consumers; we’ll likely still see the same, or close to it, subscription prices. There might be some collateral damage, though. Many developers are going to be none too happy about this, and might rethink their iPhone and iPad plans. With Android storming into the tablet market this year, it remains to be seen just how many developers, if any, will jump ship completely.

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