GetJar’s Mork comments on App Store subs

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.”

Mork argues that subscription is also good for publishers since it allows them generate recurring billing which is more profitable for their bottom line.

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.