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Apple eBook Rules Changing For Sellers
An anonymous reader writes "In a 'pray I don't alter it again' moment for eBook sellers on apple iPad and iPhone devices, Apple is now requiring third-party eBook sellers like Amazon to also make their titles available through the Apple store, wherein the empire will take an additional 30% cut. 'Apple confirmed Tuesday that it would require app developers that sell e-books outside of their iPad and iPhone apps — through a Web site, for example — to also sell the books inside those apps. And purchases that originate in the app must be made through Apple, which keeps a 30 percent cut.'"
What Apple is really saying.. any book purchased through the Kindle app is subject to the same 30% cut [for Apple] that app developers have to give Apple. If you buy a $9 book in the Kindle app, $3ish goes to Apple. This is way less about expanding the iPad/Kindle catalog and more about Apple thinking they deserve a piece.
The big problem with this.. Apple gets their 30% cut from apps because they handle the store, transaction and delivery/updating/maintenance for iOS apps. Kindle purchases don't rely on or require Apple infrastructure, the app is mainly a means to a purchasing end. This is a 'I'm going to take my ball and go home' Apple money grab. What's to stop Microsoft from demanding 30% of any Kindle for PC purchase?
I like Apple, but these kinds of capitalist 'let's invent more ways to make money' motives really rile me.
If the book comes from a publisher using Agency model, then the publisher chooses the end-consumer price, and the distributor (agent) cannot change it. The publisher takes 70% of the consumer price, and the remaining 30% goes to the distributor. Apple would be charging the distributor 100% of their revenue in this case, since they would take 30% of the consumer price.
I'd say that portability (and, by extension, longevity) is very important, especially considering that eBooks are often not cheap. Currently ePub is a decent bet - it's supported by most readers (iPad, nook, Sony's range, etc.) and is a fairly simple open format, so even if it's not directly supported in future devices it will be easy to convert without loss of formatting and so forth. The one notable exception here is the Kindle, which requires books to be converted into its own format before reading.
The real problem, though is that if it's DRM'ed it's not portable, and can't be converted to another format. There are very few DRM free options out there, and none that do exist have the range that the major sellers do. Currently Apple forces sellers to use DRM, whether the author and publisher want to or not - I'm not sure how strong the DRM on Apple purchases is, but even so I'd recommend against supporting that behaviour by purchasing from them.
The poster is correct that Amazon can't jack up prices for Apple's in-app store purchases. 30% is about what Amazon makes on Kindle books to start with, and Apple has a clause on book sales that you can't charge more in their bookstore than anywhere else that the books are sold. That required eBooks to be rounded up to the $x.99 cent mark because Apple apparently can't sell anything that doesn't end in .99 cents. Amazon would have no profit at all on sales through Apple under their contracts with publishers.
Just how many more reasons do we need to quit supporting this Apple walled garden garbage? When I buy a computer it is with the intent that I can load on it what I want to load on it -- not what Apple thinks I should be able to load on it.
"It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."