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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.'"
In a "pray I don't alter it any further" moment...
Fixed that for you.
Funny may not give karma, but +5 Informative never made anyone snort coffee out their nose.
Look folks, it's a we told you so moment. You bought the shiny hardware despite the warnings that you're going to be trapped in a walled garden. You are now at the whims of Apple and it's your own damn fault.
In related news, Ford demands 30% cut on Latte sales at drive up coffee shops citing in-vehicle purchase rules.
Sig Battery depleted. Reverting to safe mode.
And everybody who sells software that could run on Windows should send Microsoft 30%, right?
The problem comes if they try to force amazon to charge the same price in-app as they do in the web store. I doubt amazon will stick around through a decision like that. They still have to make a profit too. If they can't jack their prices up for the in-app store, then their profit margin might shrink to nothing, or put them in the negative.
Currently, the kindle app is one of the the only reasons I ever pick up the iPad anymore. Apple shouldn't mess with it. I have no qualms about ditching the iPad if they do...
With margins in the single percentage points for most on-line resellers, you think a 30% cut won't impact the users?
This will result either in a) fewer stores offering ebooks and thus less competition and thus greater prices, or b) stores raising their prices to cover the 30% cut, resulting in greater prices.
So tell me again how this won't affect the users?
Is there any reason Amazon can't just sell the ebooks for 30% more in Apple's store than in its own? Unless Amazon signed some binding contract, I think any judge would laugh Apple out of the courtroom for trying to make Amazon sell ebooks in Apple's store at a loss, or trying to make Amazon raise prices in its own store to subsidize sales in Apple's store.
Also, why are publishers still getting most of the money for ebook sales? There's nothing to publish. You still need an editor and a marketer, but there's no text to lay out, no pages to print, no bindings to make, and no boxes of books to distribute. Previously, publishing was controlled by a few companies who subsequently raised prices to where they were taking an exorbitant slice of the pie. But with the Internet, ebooks, and electronic publishing, you could do it all yourself if you wanted. This is a shakeup to the industry's business model which has long been needed.
Perhaps the filing of a complain to the FCC would be in order, maybe one to the DOJ antitrust division as well.
It worked for Google when Apple tried to pull the same thing with ads.
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.
No, the problem is requiring them to put everything on the Apple Store in the first place.
What happens if Amazon or B&N doesn't yield? Somehow the Kindle or Nook app gets "rescinded", and stops working when next their iphone or ipad updates. And then the other booksellers have to explain to their customers why all of a sudden, paid-for books can no longer be viewed on the device.
This is monopolistic practices: the next step is Apple announcing how they have "the largest selection of books" in the Apple Store, because they've forcibly extorted Amazon, Barnes&Noble, and every other ebook purveyor to put their books in the Apple Store or be cut off from the iPhone/iPod Touch/iPad market entirely.
I wonder what happened to the monopoly abuse lawsuit over iPhone only being on AT&T anyways...
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.
How can even 5-10% be justified - any non-zero amount? I paid for my iPad, I paid for my kindle books - how can it be justified at all that I have to pay Apple to use a device I already own to look at content that I already own??? You said it yourself - they do no work, they add no value - they should get $0.00.
Versatility is the reason we BOUGHT the freakin' things.
Well then you bought the wrong freakin' thing.
"When information is power, privacy is freedom" - Jah-Wren Ryel
So the middleman gets squeezed out ...
Please explain how Author --> Publisher --> Apple --> Amazon --> Reader removed the middleman from what was Amazon's current models of either:
Author --> Publisher --> Amazon --> Reader
or
Author --> Amazon --> Author's mom.
and people save money
How exactly are book sales going to kick an additional percentage to Apple and be cheaper? Do you honestly believe that if Barnes and Noble and Amazon were not alternative shops for eBooks that Apple would have lower eBook prices, when it was Apple that allowed publishers to force Amazon and BN to raise their ebook prices several months back?
Respect the Constitution
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."