Apple is Now Forcing Developers to Sell Content Via In-App Purchases

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Posted February 1, 2011 at 12:42pm by iClarified

Apple is now forcing developers who offer content for sale via a webstore to also offer the content via in-app purchase, according to Apple spokesperson Trudy Miller.

"We have not changed our developer terms or guidelines," Miller told AllThingsD. "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."

In other words, Apple wants its cut on sales enabled by its iOS devices, it has an established guideline that allows it to take it and that’s what it’s doing. Developers are still free to send customers to their own Web stores, but they must also offer them the option of purchasing content within their apps themselves, and they must route those sales through Apple which will then take its percentage.

This is a major setback for companies like Sony, Amazon, and other content providers who will not want to give up 30% of their sales to Apple.

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Apple is Now Forcing Developers to Sell Content Via In-App Purchases

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tdtran1025 - February 1, 2011 at 6:32pm

I saw this coming since the birth of iTunes, hence the viability of JailBreak. All I can say is Apple (or maybe SJ) is so drunk on power that they forget Android, though not quite polished yet, is far more ubiquitous than their iOS, and that some day one company will wake up and produce equally esthetic a phone as the iPhone.

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David - February 1, 2011 at 4:48pm

I'm not as concerned about this development as I was when I first heard it. In fact, I think Apple has some just cause for doing this. The platform that an eBook can be used on has a direct affect on sales. If Amazon, for example, is selling many more books because of the huge number of iPad and iPhone users out there, then Apple's work in putting those devices in people's hands is a direct boost to Amazon's bottom line. The platform adds value and thus may deserve a portion of that extra profit. This is no different than a retailer taking a cut of sales because their sales front and force help move more product than the product manufacturers having to sell and market directly to customers on their own.

Jazz - February 2, 2011 at 10:48am

Yes, it can also be argued that the IOS device popularity is due to the accessibility of the content from external developers etc.. If this content and apps did not exist then the buying an IOS device might not be a good chice.

David - February 2, 2011 at 11:05am

I agree with you. However, the value-added for each side, platform and content, is a separate point when pairing up the two and the related value/cost is something that's both negotiated and influenced by the market. Content producers already take their cut. When an eBook is sold through Amazon, the publisher gets 70% of that money, for instance. However, the platform side of the value equation is often left out. That's my point. Put another way, Amazon would react badly to no longer being able to use the iPad as a selling point. This means that they'd equate no iPad market with lower bottom line. Thus, the platform adds value to the content seller and thus should, in a free market, come with a price. What' really up for negotiation is the percentage. The 30% that Apple takes is probably fine with apps, where they do all the heavy lifting on advertising and distributing the apps. However, Apple does little to assist with most non-music/video content sales and thus deserves less.

dancj - February 1, 2011 at 3:01pm

This doesn't sound like any big deal. Comixology already sell comics from within the app and via their website. When you buy within the app you have to pay more to cover Apple's fees. People will soon learn to go straight to the website for purchases.

JAY - February 1, 2011 at 4:14pm

I'd understand covering fees. But 30% of sales? That's akin to Apple taking a percentage of my Amazon purchase since I made it through my iMac. I think they'll get sued and lose.

dancj - February 1, 2011 at 5:45pm

That's an interesting thought. You can buy stuff not for use on the iPhone with apps like Amazon and eBay and Apple don't take a cut. You can buy content for use on an iPhone through an external site and Apple don't take a cut. But if you buy something through an app that can be used on an iPhone then they take a cut. I wonder what will happen if you buy a kindle book through the Amazon app. Surely Apple would be hypocritical if they didn't take a cut.

Nick - February 1, 2011 at 1:26pm

Wow Apple, really? I didn't know you were becoming Communists.

dancj - February 1, 2011 at 2:58pm

Little hazey on the meaning of the word "communist" I see

dancj - February 1, 2011 at 3:43pm

I don't disagree with any that. I'm not sure it's as big a deal as it originally sounded though. Kindle and Sony can carry on as they were but also start offering the option to pay more for the same thing through an in-app purchase