Apple's message to eBook vendors and users isn't yet clear, but points toward only in-app purchases
It's been a busy day for App Store watchers. With a New York Times article last night citing in-app book purchasing as a key issue in the rejection of the Sony Reader app, and Apple's later non-clarifying clarification of the company's policy on parity for purchasing in and out of apps, we're all left a bit confused. Can you have a third-party ereader app on iOS at all without Apple's purchasing infrastructure? Where can you buy content? Is the Kindle app doomed?
I don't think the Kindle app is going anywhere right away; for one thing, it's always handled book sales through Safari rather than in-app (something Sony's infrastructure wasn't tuned for, as Christina Warren points out, but that it may be ready for now -- see the second half of this post). Sony says that it "submitted [the app] in accordance with the precedent set by other eBook retailers," which could mean just about anything. Jason Snell's analysis over at Macworld is intriguing.
But there's a deeper question that needs to be asked: Can Amazon or Barnes & Noble remain on the App Store without introducing a way to send more money in Apple's direction?
When Apple's new in-app purchase policies came to light recently, pundits wondered what it might mean to eBook developers in the App Store. Apple had initially allowed web-based commerce to provide content for App Store items, including subscriptions or individual purchases. Then, Apple began rejecting subscription-based magazines that used external channels rather than in-app purchases to make money and updated its developer agreement to make this stance clear.
The rejection of Sony's Reader app has us wondering if this new policy spells doom for our favorite eReader of all: the Kindle app. The wildly popular Kindle software is generally considered the best book reader on iOS, despite its non-Apple provenance. Being free, Apple is not only hosting Kindle without revenue on App Store, but they've been entirely excluded from the normal 30% revenue stream that in-app purchase provides.
That's not something that generally makes Apple happy.
Apple explained the situation further after being contacted by several reporters. "We have not changed our developer terms or guidelines. We are now requiring that if an app offers customers the ability to purchase books outside of the app, that the same option is also available to customers from within the app with in-app purchase."
The Sony Reader might have been using in-app purchases direct to the Sony web store -- something that certainly doesn't work with Apple's rules -- or it might not. Based on Sony's screenshots at its app status page, the store section definitely looks like it is running in Mobile Safari (note the toolbar at the bottom). This is consistent with what Amazon and Barnes & Noble have been doing, with users jumping out to the browser to handle purchasing steps.
Assuming that is what Sony was intending to do, it sounds as Apple is taking things one step further: Basically, Apple is telling application providers that they better start offering in-app purchase when selling books, making life sweeter for Apple to the tune of 30% of sales that originate in the apps versus browser-based sales.
As RWW reported, this is already happening for subscription-based publishing on the App Store. Apple has offered developers and periodical publishers a grace period to introduce in-app purchase to transition from external content sources, but by June 30 of this year they are expected to have the new tools in place or face app rejection. Developers, as always, are left to adjust their business plans to Apple's somewhat fluid third party strategy.
We won't know if Kindle, Nook or other eBook readers will feel the same pinch as Sony for a while yet -- but it seems clear that if you were looking forward to an integrated book purchasing experience and a smooth commerce solution from those third parties, you should definitely stop holding your breath.
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It's been a busy day for App Store watchers. With a New York Times article last night citing in-app book purchasing as a key issue in the...
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There's more to this than just the question of whether in-app purchases will get Apple a 30% cut. In order for a book to be sold in an iOS app, it has to pass Apple's *content restrictions*. So what happens to an ebook that (in Apple's judgment) contains pornography?
Today I can buy that book on BN.com and it will load into the Nook app on my iPod Touch. But under this new(ly-enforced) rule I could do that only if that book can also be purchased from within the Nook app. But the book won't pass the Apple censors, so I can't do that. So is BN supposed to just stop selling that ebook? Sell it to me but not let me load it on my iPod? Does Apple really want me to buy a Nook and start carrying that around too? (Or instead?)
I like Apple. I support most of their decisions. But why the hell do they care so frickin much what books I read on their iThing?
I'm really torn on this, but it does make sense for the consumer experience. I mean if I'm in a Kindle application (or any application as a matter of fact), wouldn't it be ideal experience to purchase everything in-app? It makes it more seamless? So wouldn't it Kindle being also greedy by not wanting to make it more seamless by not wanting to do in-app purchases?
I know it sucks giving Apple 30%, but then again thats like a lease for a retail space. Apple needs to make their money somehow and it's part of their business strategy to make money off both content + hardware. Apple is the shopping mall and Kindle is simply a store inside of it.
Wow. Next apple will require 30% for all shopping apps.
Perhaps they should rethink their policies with Android and others breathing down their necks.
I am going to buy both a tablet and a new smartphone by the end of the year. If Apple takes away the e-readers because of their greedy policies, I will not be buying Apple despite being a happy iPhone owner since the iPhone 3G.
February 01 2011 at 7:45 PM Report abuse Permalink rate up rate down ReplyHmm, Amazon announces last week that Kindle books outsold paperback books for the first time ever, and suddenly Apple starts to "enforce" existing policies that ban applications that provide access to purchased content that isn't also available through in-app purchase (and their 30% cut). Why bother doing deals for your own fledging iBookstore when you can just take a cut from someone else's business?
Coincidence? No... of course not....
geez people get over yourselves. if you do not like what apple has to offer go somewhere else. you all act as if they are the only game in town. go get a droid, crackberry or whatever. not to mention, put the damn gizmos down and go outside and play ball or something, sheesh.
btw, all who claim "they don't want to loose me as a customer" your little one off purchases mean nothing. grow up.
Took a while for the apologists to come out to play! Seriously, on an anecdotal note, I've seen more people pissed at Apple this time around than I've seen the "it's my ball, I'll play with it how I choose" argument.
Actually, every time one of these stories comes out, more and more people say "enough." At some point, Apple will have squeezed its chokehold into a stranglehold. The go-somewhere-else argument only goes so far. Stores are regulated at some point. You can't for example advertise one thing and then sell another. I'm not saying this is bait and switch (it was just an example), but if Sony are in fact being honest about their approach, then Apple has allowed many apps like Kindle only to block them off later down the road. Illegal? Probably not. But questionable behavior in light of the "we're trying to be more transparent" declaration a few months ago? Definitely.
please do not feed the troll.
February 01 2011 at 8:21 PM Report abuse Permalink rate up rate down ReplyIf I were amazon, and saw no choices besides removing kindle from the app store, or caving to apple's demands, i would enable in-app purchases and fork over the 30% to apple. But i'd also charge more for in-app purchases, and make it clear to the app users that this is to comply with apple's demands. then people could pay the inflated price through in-app purchase, or just go to the website and pay the normal price.
of course, apple could make some other ultimatum, but in the end, if apple really wants a piece of the kindle pie, i think they will have to sit down with them and work out some reasonable agreement. blindly forcing amazon to comply with their '30% or beat it rule' just won't work.
I really hope Amazon refuses to make any changes, and Apple either kills the Kindle app, at which point thousands of iPad owners can sue Apple for reducing the functionality of the devices we bought,
(I bought the iPad instead of a new Kindle partly because it would read Kindle books anyway. Killing that functionality because it doesn't fit their new business model is bait-and-switch.)
or Apple has to dump this whole stupid idea.
Actually I think it's smart for Apple. Of course having Kindle app helps sell some iPads, but overall iPads are selling like hotcakes regardless of Kindle.
So would you rather be Apple losing out on potential iPad sales because of Kindle because Amazon pulls the app...
Or would you rather be Apple who doesn't care if they lose out on the Kindle because they aren't making money off it anyways.
I think Apple is trying to be bully, and in the end Amazon must cave because the iPad market is just way too large to miss out on. But I'm just not sure if there is an extra 30% in profits on eBooks to even make it possible.
Apple hear it well, I used the freaking iPad mainly for Kindle reading, if you take that away from me, I'm through with iOS.
As some have say before, I converted my best friend and an aunt to iPad, 2 other friends to iPhone, my father to Mac (MacAir x2, MacPro x1, Mac G5, iPhone x3), I myself have own a countless number of iPods, 2 iPhones, MacAir, MacBook Pro, iMac Intel.
So I can say I'm a costumer you don't wanna loose. And believe me I will, (Motorolla here I come). So you better think this trough 'cause I'm tired of the "wallet garden" crap.
If I were Amazon, I would develop an in-app system for people to order Kindle Books. I would charge these users an extra 30% to buy a Kindle book from inside the app. If they purchase from the Amazon site, then they get the usual price. If Apple wants to play hardball then so can Amazon. If this happens no one will use the in app purchasing anyways. You have to offer the ability to purchase in app, but don't have to offer the same pricing. I would also make a message come up every time that someone buys a book within the app pointing out that the increased price is a result of Apple wanting to take their cut.
February 01 2011 at 4:49 PM Report abuse Permalink rate up rate down Reply...and let's not forget that books going through in-app purchase have to also pass Apple's morality censorship corps.
I don't know if they'll allow purchase of Android manuals or not.
That's an interesting thought, but I don't know that it's true. I mean it seems like it would be within the scope of their normal policies, but it's not how they've been doing it so far. They will probably just slap a "This app may contain adult material" message on there, or whatever their message is. There are already several apps that offer in app purchases of comic books, and I'm pretty sure Apple isn't reading every available comic to check for content. Not to mention that iBooks can access Project Gutenberg books, and I don't think it filters those based on content.
February 01 2011 at 5:06 PM Report abuse Permalink rate up rate down ReplyRob:
Actually there was that whole Spiegel and Bild magazines from Germany fracas... Where Apple was dictating the content of the magazines.
http://gizmodo.com/5490310/its-time-to-declare-war-against-apples-censorship
"But now Apple also wants Bild to censor the naked girl that comes in the PDF version of the printed newspaper, which is accessible from the Bild application too. "
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