4 ms·

I understand that Apple has thrown a wrench into Readability's plans. I'm trying to understand why I should believe that Readability's plans are "fair" whereas

I understand that Apple has thrown a wrench into Readability's plans. I'm trying to understand why I should believe that Readability's plans are "fair" whereas Apple's plans are not. Readability has made a contract with Apple, so I'm not clear how establishing a contract with media suppliers matters (have they? or have they taken it upon themselves to distribute a portion of their revenue due to eliminating the existing revenue model the publisher uses, without the publishers explicit consent?). Readability's contract with media suppliers is firstly contingent on Readability's contract with Apple, if Readability intends to leverage iOS app distribution. Readability cannot provide a contract to media suppliers that is in opposition to Readability's contract with Apple (again, if Readability intends to release an iOS app). Fundamentally however, Readability's value is derived from processing articles. Readability decided they deserve 30% of any revenue they can acquire from offering that service to readers. Apple's value is derived from supplying an eco-system and they have decided they deserve 30% of any revenue they can acquire from offering that service. Why does one of those service providers "fairly" get to receive 30% but the other does not?

DougBTX 16y ago
In my opinion, the old AppStore 30% cut for apps and in-app purchase was fair, but the new subscription cut is unfair. Here's my reasoning: AppStore provides distribution and one-click payment processing. Selling access to a web app is painful because you have to ask people to enter credit card details, or sign in to a third party payment processor, lots of hassle. With the AppStore, it is just as easy to take people's money as it is to give away your app for free. So, Apple is providing a service, and it seems fair that Apple would get paid for that service. The main issue with the AppStore cut is that Apple doesn't allow direct competition to the AppStore on iDevices (I think that 30% would be smaller if users were not locked in to the AppStore) however the value added is real. With the new subscription rules, the value added by Apple is much less clear, since Readability was already taking in money without Apple's help. So, the assumption is that Apple's subscription tools won't provide a boost to sales large enough to cover Apple's cut, hence unfair. With Readability's 70%-goes-to-authors business model, they will never be able to make up the loss by selling more content. I've not tried out Readability, but the argument is probably that they fall into the first category along with the AppStore, since they make it easier to give money to creators without having to look at ads. So, they are providing value, and a 30% cut is "fair".

DougBTX 16y ago

In my opinion, the old AppStore 30% cut for apps and in-app purchase was fair, but the new subscription cut is unfair. Here's my reasoning: AppStore provides distribution and one-click payment processing. Selling access to a web app is painful because you have to ask people to enter credit card details, or sign in to a third party payment processor, lots of hassle. With the AppStore, it is just as easy to take people's money as it is to give away your app for free. So, Apple is providing a service, and it seems fair that Apple would get paid for that service. The main issue with the AppStore cut is that Apple doesn't allow direct competition to the AppStore on iDevices (I think that 30% would be smaller if users were not locked in to the AppStore) however the value added is real. With the new subscription rules, the value added by Apple is much less clear, since Readability was already taking in money without Apple's help. So, the assumption is that Apple's subscription tools won't provide a boost to sales large enough to cover Apple's cut, hence unfair. With Readability's 70%-goes-to-authors business model, they will never be able to make up the loss by selling more content. I've not tried out Readability, but the argument is probably that they fall into the first category along with the AppStore, since they make it easier to give money to creators without having to look at ads. So, they are providing value, and a 30% cut is "fair".