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Apple Launches Controversial App Store Subscriptions

In an expected (and controversial) move, Apple announced a new subscription service for publishers of content based apps on its App Store, including magazines, newspapers, video and music, on the lines of Newscorp's 'The Daily' app. This development first surfaced when Apple rejected Sony’s iPhone app that lets users buy e-books from inside the application through the Sony Reader Store. Under the new service publishers can offer subscriptions or content through Apple's App store billing system. This will affect quite a few content apps including Amazon's Kindle, which requires users to buy e-books on the Amazon website and later load them on the app. Apple has the following conditions for service providers: -  Apple Will Take A Cut On Subscriptions: Users will be able to buy subscriptions through the App Store on the price and duration (weekly, monthly, bi-monthly, quarterly, bi-yearly or yearly) set by the publisher. However, the publisher will share a 30% cut from the subscription with Apple, just like in-app purchases. - Apple Wants Pricing Parity, Despite Its Cut: Publishers using this service can also offer subscriptions outside the app on their website or through other means to acquire digital subscribers , provided that they offer the same or a better (lower priced) subscription offer through Apple's App store and provide their own authentication process inside the app for subscribers that have signed up outside of the app. Also, Publishers should not provide a link to the website, where these subscriptions (or content) are sold, inside the app.…

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