Apple Revoke In-App Subscription Policy, Now Publishers will be Content

Few months back, Apple introduced the in-app subscription service for App Store that allows publishers to sell subscription for Magazine, Newspaper etc. using the App Store billing system, however at the same time Apple also updated its App Review Guidelines and this new guidelines didn’t go well with the publishers.

Earlier the rule suggest that the Apple will take 30% of the revenue when a user buys subscriptions inside the app.

Steve Jobs: Apple philosophy behind the in-app subscription:

“Our philosophy is simple – when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing,” said Steve Jobs, Apple’s CEO. “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. We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers.”

According to Wall Street Journal, Apple has revised its policy in the App Review Guidelines.

An Apple spokesman confirmed Thursday that the company revised its policies, loosening the rule requiring media app developers to only offer content for purchase through iTunes. Also, Apple dropped language that required media companies to offer paid content on the same or better terms than what they offer elsewhere.

This new rules will help publishers to offer content at whatever price they want.

Now it is not compulsory for the publisher to offer subscriptions via in-app purchase because the publisher can now offer paid subscriptions outside the app.

[ Via iphonehacks ]

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