Apple has been met with criticism over its decision to take a 30% cut of payments from companies whose mobile content is downloaded onto iPhones and iPads.
The move will affect newspaper companies and other publications – any firm that wants to distribute their content to iOS will have to allow consumers to subscribe directly from their app rather than bypassing Apple and making a purchase through their personal browser.
Under the new system, apps which include web links that lead users away from subscribing through the American computer firm will be banned from June 30. A third of the selling price will then go to Apple.
However, this has caused uproar within the print media sector. The International Newspaper Marketing Association said: “Publishers simply can’t afford to invest in new technology, products and services when the platform charges them 30% of total revenue”.
On the other hand Apple’s chief executive Steve Jobs said the “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”.
Others, such as James McQuivey, an analyst with Forrester Research, explained that Apple’s decision to take a 30% toll will amount to a massive increase in the cost basis of a content business that could kill it.
He added: “In the end, Apple envisions a world in which people don’t consume any kind of digital media without its help”.
Mr McQuivey also highlighted that the charges may encourage companies to start using other platforms, such as Google’s One Pass payment system, which charges a 10% fee.
