Rating: Subscriptions are a good thing – mostly
“Subscription is a good thing because it allows publishers to monetise in a way that maximises user value,” commented Patrick Mork, GetJar‘s CMO. Mork is commenting on Apple’s announcement that if you sell and deliver content with a subscription from within your iPhone app, you have to give Apple a 30 per cent cut. See our previous story here.It’s also a good thing because it gives publishers “the flexibility to charge consumers based on their preferences – i.e. one time payment versus cheaper periodic payments.”
This comes at a time when publishers are seeing that one-off payments don’t generate enough revenues across the board for all publishers, Mork says.
However, the notion that publishers must offer a subscription value that is at least equal to other channels in value leaves a little to be desired, Mork insists.
“This removes pricing flexibility for brands/publishers and weakens their ability to manage their margins by channel.
Although we [at GetJar] can understand Apple is doing this to maximise value for Apple users – which is their goal – it’s like telling Pepsi that Walmart always has to have the best deal, regardless of what other channels sell their soda.
It’s discriminatory and negatively affects a publishers ability to run their own businesses.
Of course, GetJar – which claims to be the world’s largest
‘open’ apps store – doesn’t charge for any of its apps at the moment, a spokesperson pointed out to GoMo News.