I really think there is some valid anti-trust possibilities here. It is one thing to require apps to be vetted - but to demand that 100% of all content is subject to an Apple Tax, even though it never touches any Apple assets at all?
One could argue that since Apple must provide storage, infrastructure, and man-hours for all the apps that are purchased for iOS devices, that they are well within their rights to take a cut of App purchases. But what justification do they have for demanding the same regarding content consumed by said apps? They do not store the content. They do not filter the content. They do not provide the bandwidth that delivers the content. They are not liable for what the content itself is. What possible justification could they have for doing this?
This is very nearly the same as saying that Sony should get a cut of all ad revenue for anything viewed on their TVs.
The only justification I've heard, and it's a very weak one, is that Apple provides the customers. That is, if Apple weren't around to run the App Store, then customers would be too stupid to find anything interesting to read, listen to or watch. Surely, they can justify some amount for payment processing overhead, but requiring all apps to use Apple's payment processing terms is beyond ridiculous.
I really think there is some valid anti-trust possibilities here.
No. Apple has plenty of competition for the app store. First of all from the Android app store. Second, the entire internet is competition for the app store.
Not in general, no, but they do have quite enough market share in some niche markets, such as smartphone apps. I think that is sufficient to spark anti-trust suits in many jurisdictions.
I'm gonna take a wild guess at what's going to happen:
- If you're an existing, popular service on iOS, you get grandfathered in, and you get to keep your current way of doing things so long as you don't rock the boat.
- If you are a new application/service, you have to pay 30%. No workarounds, no exceptions.
My theory is this: if Apple tightly enforces the policy on services customers already know and love, at least some will be forced to remove their offerings from iOS. Existing users are disappointed, and are now (a) upset with Apple, and (b) incentivized to go buy an Android.
On the other hand, if a service is small and not yet widespread, most users won't be disappointed if that service can't afford to put itself on the iPhone, and there are plenty of other apps/services to choose from, so no incentive to leave the iOS walled garden.
Yeah, I had been semi-ok with it till now. Now, I realize a lot of these companies really can't make the 30% work.
I wonder if they could just make it as a "consumption only" device... like don't have a link to get a new customer, only allow people to subscribe through the web.
This move immediately makes many subscription billing models that touch iOS uneconomical. You can't give up 30% of what you bill your customers in perpetuity. The long-established economic model for customer acquisition is to pay a cost of customer acquisition, and then you have a calculation to determine time to customer profitability. You have to have some astonishing margins to be able to give away 30% FOREVER to Apple and make that work. I can't imagine it works for Netflix--I think they are paying ~$60 per customer and probably seeing profitability in 6-12 months. Can they really have margins great enough for them to justify participating in a market with rents like this?
I suppose another way to see it is that these customers shared with Apple will be MUCH LESS valuable to companies.
I'd be interested to see what the numbers look like for Dropbox, Tumblr, LinkedIn, etc. Everyone with a lower-margin model is hosed. Does anyone have some real-world acquisition costs they've run against this change?
Pandora and Kindle both duplicate Apple services (iTunes & iBooks, respecitvely) to some degree. It's not particularly surprising that Apple wants to kick them out now. They've probably had this planned all along and ready to put into action once they got big enough.
What do you think your average iPhone or iPad owner is going to do in response to this change - buy a Kindle or Android device so they can keep using Pandora/Kindle, or just buy stuff from Apple's services instead?
If I were a serious book reader on my idevice, then I definitely would buy a Kindle. The markup on books in the iBookstore compared to the Amazon store is enough to pay off the Kindle in less than a year's worth of reading.
(Hell, it'd pay off my -iPad- in a couple of years, assuming I converted all my paper reading to ereading)
iBooks maybe, but iTunes? There's absolutely no functionality cross-over between the two, with the exception of the broad category of providing a way to listen to music...
iBooks doesn't even make any sense, considering Kindle came first by a longshot. iBooks is only there to turn the iPad into a (poor) Kindle substitute.
Exactly. If duplicating a service is grounds for rejection and expulsion, then what is a company to do when Apple moves into a new market? Should the New York Times not have a newspaper app now that The Daily has been endorsed by Apple? Should Google Maps close up shop when Apple gets around to implementing navigation? Maybe Foursquare should pack it up once Apple adds check-in support to the base OS.
All snark aside, it's never a sound business model to hand a possible competitor the "off" switch for your business.
This makes me think, is there a way to play music on the iPhone's browser? I suppose not - but ultimately this move could strengthen the mobile web apps approach to things.
Yes, MobileSafari plays music (with <audio> and direct links to MP3/M4A, etc.) quite well. The biggest issue with this as a path to replace native audio playback apps is how the browser manages resources for background tasks (tabs): they are thrown into a single pool and garbage collected when resources become constrained.
This directly mirrors how the OS manages suspended/background apps, but with the critical difference that the OS specially treats apps which are registered for different background services, like background audio playback, avoiding eviction for things like this which are effectively under active use, even when they are not on-screen.
The solution, I'd argue, is for Apple (and the web working groups, in general) to bring the same sorts of OS design concerns to browsers—in this case, richer interfaces for more intelligent handling of background tasks by both the runtime and the tasks, themselves.
I was only thinking recently that "background tasks" might be a missing ingredient for HTML 5. They probably don't make sense with traditional desktop browsers, as it is sufficient to keep a tab open with the app. But on mobile browsers it is a different story.
They aren't as essential for desktop browsers (now), since the relative resource constraints on a given tab are so much smaller, but just as relevant as "desktop" runtimes scale down in power/up in efficiency demands, and as the apps run within them scale up in resource demands. Just look to how much RAM your 25 browser tabs burn, and how warm a single tab with Flash ads can keep your MacBook Air.
There is, but it's crippled. Only the simplest of controls are exposed to Javascript, and the music stops playing when the app closes or the device locks.
Not true. I'm working on a music webapp for iOS and the audio keeps playing if you exit Safari/lock the device. It's actually quite annoying as the only way to stop the music is to open Safari and pause the audio.
Sorry, but you don't realize how many of us use our iPads to read when there is no Wifi connection around. We can't do that with a web app.
I am outraged, fuming really. I read my Kindle books on my iPad all the time.
If they do not reverse this, this will all but guarantee that I am switching to an Android tablet as soon as it becomes a viable contender. Honeycomb can't get here soon enough.
safari supports HTML 5 Storage and apparently there is a 5 mb limitation per url. Looks like most of my kindle books are under 500kb, so that shouldn't be an issue.
There is a basic lack of understanding here. This is not "unfair" in any way. Apple owns the platform, period. They have a right to do whatever they want with the platform and set any terms they want.
Developers are free to choose whether or not they like the terms of the platform.
It's not so simple as that. Not at all. For one thing, a platform is a concept. As far as ownership is concerned, the users own their respective devices, not Apple. Moreover, it is not "fair" to exploit a monopoly (in this case, one unethically created by means of a closed platform with undisclosed and inconsistent app approval rules), and as such, many countries have laws preventing the unethical exploitation of monopoly-derived power.
Anyway, I find it very odd to speak of Apple's "rights" whilst simultaneously ignoring those that actually have rights: the users. The philosophy that organizations can have rights independent of and greater in extent than any of its constituent persons is, to say the least, bizarre to me.
"A monopoly", "unethically created"... Apple's platform and its success are the result of the work of Apple's employees - the platform is good, this is why developers like it and use it. Any great innovation that comes first to market is alone there. Why? Because no-else had the same skill and vision to create it. It is successful. Why? Because it is good. If you classified the above as an unethical monopoly and killed it, we would still live in the dark ages.
There's a vast, vast difference between being first to market, and using that advantage to unethically create a monopoly by cryptographically locking users out of their own devices. If we fail to take a stand against such blatant violations of user rights, then that is what will undo the wonders of computing. Under the Apple model, innovation must follow asking your competitor for permission. Truly disruptive innovation cannot be sustained as long as Apple has unilateral control over the devices that they make, even after they are long past sold.
Apple has the right to do whatever it wants with its first-to-market product, as long as it does not break the law. There is nothing unethical about that.
Also, there is no such thing as user rights. The only right a user has is to sue Apple if he/she thinks Apple is in violation of its explicit written contract with any individual user. Before purchasing an Apple device, a customer knows that he/she may be "locked" out of the device, but he/she buys it anyways. A user knows all the conditions before the purchase. Apple does not guarantee that after you buy a device they will always provide a great variety of apps at a price you find acceptable. Apple does not guarantee a wonderful service, it does not guarantee great partnerships with developers, it does not even guarantee that it will be in business in a few months. All of that is perfectly clear to anyone who buys a device in almost any market.
Apple also has no obligation whatsoever to help any of its competitors innovate. If they cannot "innovate" without Apple, it is their problem to solve, they have to be smarter and more resourceful, create something on their own or convince Apple to work with them by demonstrating a compelling product. This is how a free economy operates.
I've seen similar arguments a lot lately. People are comparing ownership of the iPad to rent or lease type arrangements. Sorry, but you're the one who's just wrong on this.
Maybe if you spent $500 dollars for rights to use the theater while being told you could bring your own food in, then the rules changed it'd be comparable. Otherwise not even close.
You just don't get it. Apple owns the App Store. Apple therefore has the right to dictate the terms of the App Store, because they own it. Developers get to choose to use the app store and agree to Apple's terms if they want. End of story.
That analogy only works if the theatre was also owned by the moviegoer. A better analogy would be a DVD player that wouldn't play movies if you ate the wrong brand of popcorn while watching in your living room. If you're going to call someone out as "just wrong" by using an analogy, please make sure your analogy says what you want it to say first.
One could argue that since Apple must provide storage, infrastructure, and man-hours for all the apps that are purchased for iOS devices, that they are well within their rights to take a cut of App purchases. But what justification do they have for demanding the same regarding content consumed by said apps? They do not store the content. They do not filter the content. They do not provide the bandwidth that delivers the content. They are not liable for what the content itself is. What possible justification could they have for doing this?
This is very nearly the same as saying that Sony should get a cut of all ad revenue for anything viewed on their TVs.