5 ms·
>Why does Readability feel they deserve $0.30 but Apple doesn't? If Apple doesn't deserve $0.30, shouldn't the publisher/writer get the full $1? Without the art
by writetoalok 16y ago
>Why does Readability feel they deserve $0.30 but Apple doesn't? If Apple doesn't deserve $0.30, shouldn't the publisher/writer get the full $1? Without the articles, Readability is worthless. Without Apple, Readability for iOS is worthless.
This is an interesting question that deserves thought. Readability provides publishers/writers with an application and a new medium to distribute their efforts. And for their efforts towards building this new medium, they require a 30% of cut from end users cost.
- Would publishers/writers be able to publish their content in any other way on the iphone. Of course.
- Would publishers/writers be better off using another way publishing their content on the iphone. Maybe.
Apple provides iOS API for App writers to distribute their efforts (Apps). Apple takes a 30% (or is it 40%?) cut from the App end users cost for their efforts. So far so good, all sounds fair.
Now Apple (for whatever reasons; we'll go through them soon) enforces that:
- All developers use only iStore for any end user transaction. This may be enforced by Apple on the grounds of providing a consistent and safe end user experience. But its is mostly to do with keeping a tight control over the market (end user) and their revenue stream.
- Use only iOS for developing any Applications. Ditto said and actual reasons.
- And now Apple also wants not only a 30% cut of the App sales (which is fair), but also a further 30% cut of the subscription revenue stream (which the App publishers have rightly described as exceedingly greedy. But it is also "monopolistic")
So lets view the fairness arguments again. What would be fair for Apple to do so that they are paid a deserving portion of revenue for their efforts? They could mandate that
1. Any paid for App will not encumber additional subscription revenue share (tax), as long as they do not use Apple's streaming resources (is this 100% possible for subscription services?)
2. Any App which is distributed free, but is paid for by a subscription model, will have a revenue share agreement with Apple.
What about the user community and the society as a whole? What is fair for them?
- It is definitely fair for the user community to have an ability to use their devices (both hard and soft parts of it) in ways that they seem fit, unless of course it harms anyone else. Although I strongly believe in a "take it as it is or leave it" argument for Apple, I also believe in a code for fair conduct (think "consumer rights") towards consumers.
- It is healthy for the society as a whole to have ecosystems for software stacks (iOS), application stacks (iOS API and Apps), and content. It is also healthy for society as a whole to have companies like Apple take profit in certain ways that aid their business. However there is some rights for consumers that must be upheld by society. For instance if an iphone leaks acid causing injury to user, then surely Apple will be held accountable in a court. There is some similarity in Apple leaking because of its revenue share causing financial injury to developers.
All things said and discussed, what all of this really about is, Apple controlling their user revenue stream, and pricing out its competitors in the application stack.
iTunes <=> music store
iBooks <=> book store
so on and so forth.
A lot of those 30% subscription cuts could be going towards development of Apple's competing applications. Apple is most certainly monopolizing its customer base against other developers in its App market. And Apple invited them in the first place and has misplaced their trust. It is a thin line that they have now crossed without much discussion (public).
- OpieCunningham 16y ago> All developers use only iStore for any end user transaction. This may be enforced by Apple on the grounds of providing a consistent and safe end user experience. But its is mostly to do with keeping a tight control over the market (end user) and their revenue stream. - Use only iOS for developing any Applications. Ditto said and actual reasons. - And now Apple also wants not only a 30% cut of the App sales (which is fair), but also a further 30% cut of the subscription revenue stream (which the App publishers have rightly described as exceedingly greedy. But it is also "monopolistic") >So lets view the fairness arguments again. What would be fair for Apple to do so that they are paid a deserving portion of revenue for their efforts? They could mandate that 1. Any paid for App will not encumber additional subscription revenue share (tax), as long as they do not use Apple's streaming resources (is this 100% possible for subscription services?) 2. Any App which is distributed free, but is paid for by a subscription model, will have a revenue share agreement with Apple. I'm not sure that's an accurate analysis. It appears you want to define Apple (and iOS) as simply a technical infrastructure service provider: bandwidth, disk space, etc. If that were true, iOS would be effectively identical to Android and no one would complain about this 30% because they'd just hop over to Android without a second thought. Apple is providing a service to iOS developers: access to the iOS eco-system. Developers are not required to develop an iOS app, they have numerous other options for distributing their application/service. If they want to leverage the iOS eco-system (installed user base, iOS advertising & marketing that Apple pays for, SDK that Apple has developed and maintains that is often considered rather efficient at enabling development of user-friendly applications, payment processing system that is extremely easy for end-users, etc), those developers must agree to Apple's terms of access. In return, Apple believes they can charge fees for various methods in which a developer may choose to use the wide range of features Apple has created in their iOS eco-system. Readability is, as far as I can determine, nearly identical: they have developed a service that provides access to other people's creative work and Readability charges for that service. As an end user, I don't have to use Readability to access the original creative work. If Readability is "allowed" to charge the content owner 30% to give me that special Readability access, why can Apple "not" charge the developer 30% to give them access to that special Apple eco-system? My entire point would be moot if Apple required 30% of all revenue from Readability regardless of whether the subscription originated from within the iOS app or from Readability's website - but Apple has not done that, which is exactly why Apple's fee is a fee to access the eco-system (not specifically to use Apple's bandwidth, Apple's storage space, etc). edit: In fact, on further consideration, why is Readability's business model considered fair in and of itself? They provide a mechanism for a publisher to voluntarily sign up to receive the 70% Readability wants to give them - but does that mean Readability will not function on a publishers content if that publisher does not agree? I don't believe Readability is blocking access to content from publishers that have not signed up. Effectively, Readability is extorting publishers: give us 30% or we'll take everything. Apple on the other hand is simply saying: give us 30% or you can't use our service. The latter is blatantly more "fair" as it only exists with choice. The former requires publishers to actively use resources to block Readability (on a continuing basis) in order for the publisher to maintain their previously established business model. The publisher's choice has been eliminated. How can Readability justify that?