SubscriptionsPosted: February 17, 2011
Ben Brooks has been one of the most vocal supporters of Apple’s new 30% subscription policy over the past few days. Initially, his was a very unpopular viewpoint, seeing as a 30% cut seems like an exorbitant amount. I read his posts with skepticism, trying not to fall into the “Apple can do no wrong” mindset that he seemed to espouse. Then a funny thing happened – he convinced me. Turns out that I didn’t know as much as I thought about the rates of other media outlets like Netflix and the magazine industry. When one takes a broad view of all the options available to consumers and publishers alike, Apple’s deal doesn’t seem so bad after all.
Apple has continually shown us that it knows how to turn a profit and build an incredibly popular ecosystem. The executives setting the prices aren’t stupid and they aren’t out to secretly kill publishing. I doubt that Apple is stupid enough to set rules that will hurt its booming success, and consumers certainly won’t care what publishers pay to get on the App Store.