Computer World broke down how Apple’s new app subscription service will affect Kindle (and other e-book users).
“Our philosophy is simple — when Apple brings a new subscriber to the app, Apple earns a 30% share,” said CEO Steve Jobs in a statement Tuesday. “When the publisher brings an existing or new subscriber to the app, the publisher keeps 100% and Apple earns nothing.”
Publishers and content sellers must remove any links within their apps to outside-the-App Store purchasing options, Apple said, a requirement that means Amazon.com must eliminate the link to the Kindle Store that it currently provides in its iPhone, iPod Touch and iPad apps.
Subscriptions and other digital content can still be sold outside the App Store — thus sidestepping the 30% cut — said Apple, but the company will now demand that if that’s the case, the app also include in-Store purchases.
Read the whole article here.
The relevant question for Kindle self-publishers is how will this affect their cut?
If Apple is taking 30 percent, and you can’t increase the price of the content for Apple-sold products, then who is going to take the hit in profits? Amazon or publishers? One hint, it won’t be Apple.
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