Apple’s Big Subscription Bet

MG Siegler on why Apple played its hand this way: Further, Apple absolutely had to force the prices to be the same (or better) as they are outside the app environment to ensure the system would work at launch. Without this key component, the system would be DOA. Companies would undoubtedly be okay with this […]

MG Siegler on why Apple played its hand this way:

Further, Apple absolutely had to force the prices to be the same (or better) as they are outside the app environment to ensure the system would work at launch. Without this key component, the system would be DOA. Companies would undoubtedly be okay with this system if they could jack up the prices to pay for Apple’s 30 percent cut, but that would undermine the entire system. Apple’s stance on this will piss companies off, but it’s the right one for consumers.

I am tired of hearing non-developers whine about this move. The bottom line is that this is the best possible move consumers of iOS devices could have hoped for.

A system that is:

  • Easy to use.
  • Easy to Manage.
  • Easy to quit.
  • Offers privacy protection (companies don’t get your data unless you OK it).

Yes, this gives developers the shaft. Yes, 30% is a huge chunk. BUT, what’s the cost of you not getting potentially hundreds of thousands of new users? Far greater than 30% — that’s for sure.

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