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Apple vs. Amazon battle brewing over e-books? Answer: Probably not.

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numble said:
Well that's bad news. Hopefully the allow price differentials between direct and iTunes like with the Mac App Store.
That is my hope as well. I dont like the news, but it does make things easier. Hopefully they do have a way to say there is a cheaper option.
 

Talon

Member
LCfiner said:
important update:

http://www.macrumors.com/2011/02/01...al-purchases-to-also-offer-in-app-purchasing/

Apple Now Requiring eBook Applications With External Purchases to Also Offer In App Purchasing

I'll admit it: I think this is bad and worse than I had thought for vendors since the user will likely choose the easier in-app purchase option and then Apple gets a kickback and the developer loses revenue.
Seems like an easy choice for Amazon. Boost the price for the in-app and put the ball in Apple's court.
 
Talon- said:
Seems like an easy choice for Amazon. Boost the price for the in-app and put the ball in Apple's court.
Then Apple gets a cut and in turn makes the iBooks versions potentially cheaper? And would publishers allow it since it is raising the price on their products?
 

AndyD

aka andydumi
PhoncipleBone said:
Then Apple gets a cut and in turn makes the iBooks versions potentially cheaper? And would publishers allow it since it is raising the price on their products?

Not if its presented as:

Shakespeare's Plays
Itunes:19.99
Amazon:9.99

And you can click on whichever link you want.

This is pretty bad precedent because they could do that with all media apps that compete with Itunes. Movies, music...
 
AndyD said:
Not if its presented as:

Shakespeare's Plays
Itunes:19.99
Amazon:9.99

And you can click on whichever link you want.

This is pretty bad precedent because they could do that with all media apps that compete with Itunes. Movies, music...
I was commenting on the fact that the content providers themselves may not like Amazon, Sony, or BN hiking the prices on the products for in app purchases.
 

Tobor

Member
Well, this certainly took a turn for the interesting.

Talon said:
Seems like an easy choice for Amazon. Boost the price for the in-app and put the ball in Apple's court.

I'm not sure it's as clear cut as that. It might drive the less savvy customers to iBooks.
 

Blackhead

Redarse
Heh, after suspecting Amazon of using an easier license so it could grow marketshare and later force an increase in ebook prices, it turns out that Apple might actually be the cause of An Amazon price increase?! It's a weird world we live in.
 

Phoenix

Member
i doubt this is going to be an issue. Even is Apple could initially get away with this, the EU would shut them down almost over night. Unless Apple plans to get rid of the UIWebView, there is nothing they can do. They cannot tax transactions that take place on the regular web and I doubt they are trying to. You can't spin up your own appstore, but there is nothing stopping you from sync'ing with apps purchased off "device".
 

Blackhead

Redarse
Phoenix said:
i doubt this is going to be an issue. Even is Apple could initially get away with this, the EU would shut them down almost over night. Unless Apple plans to get rid of the UIWebView, there is nothing they can do. They cannot tax transactions that take place on the regular web and I doubt they are trying to. You can't spin up your own appstore, but there is nothing stopping you from sync'ing with apps purchased off "device".
So you think Apple will let the Sony Reader into the store? Isn't it an issue when they've already banned one ebook reader app?
 

Tobor

Member
Phoenix said:
i doubt this is going to be an issue. Even is Apple could initially get away with this, the EU would shut them down almost over night. Unless Apple plans to get rid of the UIWebView, there is nothing they can do. They cannot tax transactions that take place on the regular web and I doubt they are trying to. You can't spin up your own appstore, but there is nothing stopping you from sync'ing with apps purchased off "device".
I think you're right. And there's still only the one app denied so far, which from the sound of it had gone further than Amazon and B&N.
 

LCfiner

Member
Charred Greyface said:
So you think Apple will let the Sony Reader into the store? Isn't it an issue when they've already banned one ebook reader app?

well, now it looks like Sony would need to resubmit their app with in-app purchases and, optionally, a link to a web page for external purchases.

we've always known that a vendor couldn't build their own in-app purchase system, but now there's the extra work of having to use both their own web page plus Apple's in-app purchase system.
 
I don't understand how this benefits Apple in any way. What's Amazon going to do, realistically?

Kindle e-book, normal purchase: $9.99.
Kindle e-book, in-app purchase: $9.99 + 30%.

Amazon isn't going to take a cut to give Apple their 30% so they'll pass than onto consumers. Consumers, looking at two different prices for the same book, will buy the cheaper one. Apple gets nothing and it just adds complexity that doesn't need to exist. Unless i'm reading this wrong?
 

Soybean

Member
Well, as someone noted above it might drive a bunch of people to iBooks. For the rest of us who prefer reading on all kinds of devices, we'll just buy from Amazon/B&N like we've already been doing.
 

numble

Member
Zombie James said:
I don't understand how this benefits Apple in any way. What's Amazon going to do, realistically?

Kindle e-book, normal purchase: $9.99.
Kindle e-book, in-app purchase: $9.99 + 30%.

Amazon isn't going to take a cut to give Apple their 30% so they'll pass than onto consumers. Consumers, looking at two different prices for the same book, will buy the cheaper one. Apple gets nothing and it just adds complexity that doesn't need to exist. Unless i'm reading this wrong?
A lot of stuff on the Mac App Store/Steam is the same price as things that developers sell directly, even though Apple/Steam gets a 30% cut.

Maybe the event tomorrow may shed more light on this stuff.
 

LCfiner

Member
Zombie James said:
I don't understand how this benefits Apple in any way. What's Amazon going to do, realistically?

Kindle e-book, normal purchase: $9.99.
Kindle e-book, in-app purchase: $9.99 + 30%.

Amazon isn't going to take a cut to give Apple their 30% so they'll pass than onto consumers. Consumers, looking at two different prices for the same book, will buy the cheaper one. Apple gets nothing and it just adds complexity that doesn't need to exist. Unless i'm reading this wrong?

I think their reasoning was twofold.

1. they wanted to offer the most convenient and consistent purchase option to users.
2. 30% money for us. yay!

I'm not sure if they considered potential backlash from these third parties potentially raising costs for the in-app purchase price.

anyway, i don't think you're reading it wrong. Apple has very little to gain from this. it's just going to add another option for the user to choose from and make the UI more messy.
 

numble

Member
Well I know some small developers (or at least one I know personally) were annoyed that Apple didn't let them put purchases on the web and forced them to only use in-app purchases, while the big developers were allowed to get away with it. The developer I know was also selling books--dictionaries to be exact--that also had the same ebook-type publisher licensing terms that usually go with e-books.

This new policy should also loosen some restrictions for developers, if applied consistently--you don't need to buy horse armor with an in-app purchase! Push them out to the web with their credit card.
 

giga

Member
tumblr_lfpgsoF9D61qzg8hbo1_500.png


As it is right now, this is a dick move. The 30% cut for developers makes sense because of the time and resources required for the store and its downloads, but publishers can’t live with that same amount for their content.

Like they did with their music store, I hope they announce tomorrow a different revenue share for in-app purchases. I think Apple gets about 10% from music sales which is far more reasonable.
 
giga said:
tumblr_lfpgsoF9D61qzg8hbo1_500.png


As it is right now, this is a dick move. The 30% cut for developers makes sense because of the time and resources required for the store and its downloads, but publishers can’t live with that same amount for their content.

Like they did with their music store, I hope they announce tomorrow a different revenue share for in-app purchases. I think Apple gets about 10% from music sales which is far more reasonable.
That doesn't sound too unreasonable.
 

numble

Member
giga said:
Like they did with their music store, I hope they announce tomorrow a different revenue share for in-app purchases. I think Apple gets about 10% from music sales which is far more reasonable.
This is what I've been hoping as well, but it feels like wishful thinking--there usually would be more rumors going around.

But the argument can be made--they will not be expending resources to review this content like they review apps for bugs. They already know that it's been difficult for magazines/newspapers to monetize under the current system unless they try to go outside the iTunes payment system (which is awkward).

If they just announce "recurring subscriptions" tomorrow, that doesn't solve very much--couldn't an app just build it's own reminder/notification system to remind customers to renew their subscription?
 

teiresias

Member
PhoncipleBone said:
That doesn't sound too unreasonable.

It does when the only reason they'd ever need to share the revenue is because Apple mandates in-app purchases. Web-based purchases have been working fine, particularly for non-app content such as book for e-reader ecosystems.
 

giga

Member
numble said:
This is what I've been hoping as well, but it feels like wishful thinking--there usually would be more rumors going around.

But the argument can be made--they will not be expending resources to review this content like they review apps for bugs. They already know that it's been difficult for magazines/newspapers to monetize under the current system unless they try to go outside the iTunes payment system (which is awkward).

If they just announce "recurring subscriptions" tomorrow, that doesn't solve very much--couldn't an app just build it's own reminder/notification system to remind customers to renew their subscription?
No idea how it will work or what the revenue share will be. Just have to wait and see.

teiresias said:
It does when the only reason they'd ever need to share the revenue is because Apple mandates in-app purchases. Web-based purchases have been working fine, particularly for non-app content such as book for e-reader ecosystems.
Well if Amazon was forced to adjust their app, they’d basically have to put a higher priced in-app purchase price next to their regular web purchase price. (There’s no way they would eat that cost)

Would consumers pick the simpler in-app purchase over a more convoluted web one? For most of them, I don’t think so.
 

Mrbob

Member
I don't see why Apple deserves any cut. This isn't like Amazon is developing on the itouch format. They are offering an app which is compatible with their own business model.

Of course I don't think this is that big of a deal. Most kindle purchases are made from the computer versus in an app.
 
Making a mountain out of a mole hill. Ebooks aren't app purchases. The respective ebook sellers don't own the rights to the contents. Nor are the ebooks restricted to just being used in the iPhone apps. It'd be like saying music I buy from iTunes is an app purchase. There's no way Apple could force this through.
 

Orlics

Member
It really is too bad that Kindle has a much better selection that the iBookstore... iBooks is a much better app. Try playing around with the pages instead of tapping to flip them, it's a lot of fun.
 
Beside the user, the group this is going to impact is probably the publishers assuming Amazon passes on the added costs to the user (as highlighted above with the iTunes version of the book costing more than buying the same book externally), right? I wonder how that would impact their relationship with Apple in regards to the iBook store many of those same publishers provide to

Also, I'm struggling to imagine why anyone would buy the same book but at a higher price? Amazon will have a tough time in designing a new UI without causing confusion. If you have an 'iTunes or 'iPad' specified title for each book, it may confuse someone to think the Kindle version of the book is incompatible and hence opt for the more expensive iTunes version.

Either, this is going to inflame eBook piracy. The varying formats and their DRM restrictions are already a headache
 

Vyer

Member
Orlics said:
It really is too bad that Kindle has a much better selection that the iBookstore... iBooks is a much better app. Try playing around with the pages instead of tapping to flip them, it's a lot of fun.
Somehow I never knew this. That's pretty cool.
 
Meus Renaissance said:
Beside the user, the group this is going to impact is probably the publishers assuming Amazon passes on the added costs to the user (as highlighted above with the iTunes version of the book costing more than buying the same book externally), right? I wonder how that would impact their relationship with Apple in regards to the iBook store many of those same publishers provide to

Also, I'm struggling to imagine why anyone would buy the same book but at a higher price? Amazon will have a tough time in designing a new UI without causing confusion. If you have an 'iTunes or 'iPad' specified title for each book, it may confuse someone to think the Kindle version of the book is incompatible and hence opt for the more expensive iTunes version.

Either, this is going to inflame eBook piracy. The varying formats and their DRM restrictions are already a headache

I really really doubt Amazon would market a book as and "IPad Version" to fool it's own customers to buying something that gives apple a cut. I'm sure it will be explained better than that.
 

Shanks

Member
Wait so does iBooks, Google books, and the Nook store have DRM? I thought all three used DRM free ePubs that can all be used on eachothers apps. I knew Kindle used some other format.
 

Tobor

Member
Shanks said:
Wait so does iBooks, Google books, and the Nook store have DRM? I thought all three used DRM free ePubs that can all be used on eachothers apps. I knew Kindle used some other format.
All three have DRM. You can add DRM free Epubs to iBooks and Nook.
 
giga said:
As it is right now, this is a dick move. The 30% cut for developers makes sense because of the time and resources required for the store and its downloads, but publishers can’t live with that same amount for their content.

Like they did with their music store, I hope they announce tomorrow a different revenue share for in-app purchases. I think Apple gets about 10% from music sales which is far more reasonable.
Really?

Do you know what the markup for printed material is? Stores usually get a 40% cut of the retail price.
 

cvxfreak

Member
I'm very interested in Sony's e-reader app because they now sell e-books in Japan (in Japanese, of course), so it would be quite beneficial for me that Sony's app is published soon.

This news makes me so much happier that I traded my iPad in for a MacBook Air. No way that thing will ever function as a real computer, and Apple's closed model is living proof of that. I can tolerate a phone being closed off to some extent, but I don't see the logic with a tablet like the iPad.
 

Blackhead

Redarse
lunarworks said:
Really?

Do you know what the markup for printed material is? Stores usually get a 40% cut of the retail price.
Amazon was actually giving publishers a 65%-35% split irrc before Apple came along with a 30%-70%. But this is besides the point. For the same reason nobody wants Verizon telling Apple that they either get a cut of app store revenue, or put VCast apps by default on the phone, before the iPhone is allowed on their network, nobody wants Apple to do the same thing to Amazon (that they either get a cut of ebook sales by including Apple's in-app purchase mechanism) before the app is allowed on their platform. It's bullshit.

Tobor said:
All three have DRM. You can add DRM free Epubs to iBooks and Nook.
The Nook, Sony Reader and practically all the other small stores who use drm, all use the same type of DRM so you can get a book from any of them and read on your Nook or Sony Reader. It's the same DRM that libraries use too, which is why you use those on the Nook and Sony Readers but not the Kindle. Apple implemented its own separate DRM.
 

mAcOdIn

Member
I guess my main gripe is Apple essentially forcing you to have to use the Appstore to get a program on your device. If there were alternate, supported, methods for installing applications other than through the Appstore or iTunes I would agree that Apple could do whatever the fuck they want on their store.

I sold my iPad before the courts decided Apple couldn't stop Jailbreaking, so I don't know how things are going on that front but I dislike that being the only other avenue.

But part of this stems from my insistence that a tablet be essentially a portable computer. It is fair to compare Apple's iPad to Sony's PS3 if you wish but by doing so you no longer really place the iPad as a computer and instead liken it to a toy, and maybe that's correct but that's not how I want it. Of course this is opinion, Apple very well may be able to do whatever they want legally and perhaps this method will be preferred by most people, I dunno. That's just why I bailed out.

This is slightly unrelated to the topic but I'm so disappointed in the tablet market right now, you have the iPad which is pretty closed and probably more limited than any of the others but it's also the best to use for the things it does do well, you have Android which theoretically should be better than the iPad but isn't, I liken it's openness compared to Apple as, well, Bullshit, and then you have Windows 7 Tablets coming that are probably going to be super flexible but will probably be less effective and intuitive to use than Android tablets or the iPad. Ugh. It's so frustrating.
 

Talon

Member
Tobor said:
I'm not sure it's as clear cut as that. It might drive the less savvy customers to iBooks.
Well, considering they're not having much problems with their system as is, they can just put:

In App: 15.99
On Amazon: 9.99

User clicks through on the second link, and Jeff Bezos is happy.

Honestly, there's no way Apple pushes the Kindle app out of the way. It would be asinine considering how valuable it is to the iOS ecosystem. It's a huge selling point for the iPad to have the Kindle store available. They can afford to scoff at the Sony Reader store.

And, yes, I'm with the others in the thread that can't wait for publishers to knock these book prices down. Hopefully, as more people buy readers and tablets this year, we'll see the prices adjusted accordingly.
 

Future

Member
Dick move, but this is why these bastards make so much money :p. They probably cant beat amazon in book selection/prices, so they find another way to snag a cut from their profits. Brilliant. Taking notes
 

numble

Member
Well, they just released subscriptions to everyone, with a press release that describes their position. Pertinent part:

Publishers who use Apple’s subscription service in their app can also leverage other methods for acquiring digital subscribers outside of the app. For example, publishers can sell digital subscriptions on their web sites, or can choose to provide free access to existing subscribers. Since Apple is not involved in these transactions, there is no revenue sharing or exchange of customer information with Apple. Publishers must provide their own authentication process inside the app for subscribers that have signed up outside of the app. However, Apple does require that if a publisher chooses to sell a digital subscription separately outside of the app, that same subscription offer must be made available, at the same price or less, to customers who wish to subscribe from within the app. In addition, publishers may no longer provide links in their apps (to a web site, for example) which allow the customer to purchase content or subscriptions outside of the app.
http://www.9to5mac.com/52086/apple-launches-app-store-subscriptions-for-all-developers#more-52086
 

numble

Member
Charred Greyface said:
I don't see how this affects ebooks... Netflix and Hulu should be watchin their back though. I think MLB.tv and NBA already use in-app purchases?
Yeah, the press release directly focused on subscriptions, but you might think they will do something similar with specific content purchases. But they also say you can't put a link to purchase content outside, which would apply directly to the current method that Amazon and B&N uses.

I know that The Economist has an iOS subscription purchase on its website that's not available via in-app purchase. They send you to the website and you pay for a subscription that only works on iOS. Don't know if they want to apply this only for iOS-only subscriptions or digital subscriptions overall.
 

Blackhead

Redarse
numble said:
Yeah, the press release directly focused on subscriptions, but you might think they will do something similar with specific content purchases.

I know that The Economist has an iOS subscription purchase on its website that's not available via in-app purchase. They send you to the website and you pay for a subscription that only works on iOS. Don't know if they want to apply this only for iOS-only subscriptions or digital subscriptions overall.
Well the Economist can no longer send people to the website from within the apps, according to the press release. Developers will only be able to offer in-app purchasing within the app, and an authentication for those subscribied outside the app. And since the both prices have to be the same (i.e. Resulting in a 30% markup outside the store) the developer has little to offer the subscriber for choosing the web store. This is actually worse than we imagined when the rumor first appeared.
 
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