Digital publishing company YUDU Media acknowledges the speculation in the press surrounding Apple’s renewed focus on:
a) not allowing application developers to sell content within their apps other than via Apple’s In App Purchase (IAP) system, including any rerouting of the customer to the publisher’s website to purchase content
b) not allowing customers to have access to content such as magazines subscriptions, single copies and books on their Apple devices that they have bought outside of the app, such as aggregator or publisher’s website,
YUDU understands that this move by Apple to enforce its existing guidelines for developers is linked to its imminent announcement to launch a subscription system through its App Store.
This move by Apple has several important consequences, says YUDU, for publishers and consumers:
• Publishers that have not complied with Apple’s terms and conditions and have sold content using other payment methods, content aggregators or gateway applications will have to start using the App Store. In doing this, they will be obliged to start paying Apple the 30% commission which has always been applicable but not enforced. This could have profound implications on their revenue models as many publishers have been selling to consumers at a cost that does not currently take into account the 30% due to Apple.
• Publishers will have to ensure that all applications must now comply with Apple’s developer guideline as early as the 31st March. Existing applications that do not comply risk not being able to deliver future publications to subscribers.
• Apple’s enforcement will benefit small and medium sized publishers who will be able to capitalise on the scale of Apple’s global App Store customer reach. With over 14 million iPads sold in 2010 and an estimated 45 million in 2011, the App Store offers publishers access to a far wider market than the print versions ever have. Furthermore, these publishers will no longer have to maintain separate billing and subscriptions processes.
• For customers of online subscription apps this announcement will mark an improved user experience and allow for easier access to their chosen material directly from the App Store. The consumer will no longer have to navigate away from the App Store to third party portals and payment gateways.
• Apple’s renewed focus on all transactions having to come from the App Store will allow easy access to content and faster transaction times for consumers. This ability for consumers to make quick purchases will also benefit the publishers as impulse purchases are a recognised characteristic of consumer buying behaviour online and will also increase the volume of sales for publishers.
Commenting on the announcement Richard Stephenson, Chief Executive of YUDU Media said: “Apple has a market leading position in the tablet industry, having sold over 14.8 million iPads in 2010 and continues to be the best platform for publishers to sell content across a vast spectrum of audiences. However, for many publishers who have benefitted from this platform but not complied with Apple’s guidelines, this enforcement will have a huge effect on their profit margin as they will have to pay an additional 30% to Apple which they currently do not.”
“With little time before the rule is enforced it is essential that these organisations begin deploying new applications and submitting them for approval to ensure that their customers can continue to enjoy their content.”
