On Feb 17, 2011, at 9:06 AM, Chris O'Connell wrote:
> 
> This cost is simply going to be handed down to the consumer.

Let's put this into context:

Apple currently takes 30% from all App Store sales.  The rest goes to the 
developer.  This is actually a pretty good deal for developers, especially the 
small, independent developers who don't have a high-profile distribution chain 
of their own.

Apple is now applying this 30% take to purchases made from Apple's store from 
within applications.  This is not, in and of itself, any different from the 
application sales skim.  This is not what content providers are bitching about.

What they are bitching about is the requirement that any application that can 
purchase content from within itself must make that content purchasable through 
Apple's storefront and must do so at the same or better price point as the 
developer's own storefront.  The prototypical example is Sony's Reader 
application since that is what brought all this to the fore.  In order to 
support in-app purchases of Sony Reader books, Sony must sell those same books 
through Apple's storefront, and Sony must sell those books at the same price as 
it sells through its own store, or at a lower price.

It's not the 30% skim that they hate.  It's the requirement that they sell 
through Apple's storefront that they hate.

--Rich P.


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