Earlier this year, Apple announced they would take 30% of subscription fees from content-based apps like Hulu, Netflix or Spotify.
30% is a serious cut, and has left content-based apps in a tough spot. However, it looks like the UK’s Financial Times has figured-out a way to work around Apple’s new policy, and get back their 30%.
The Financial Times solution is a paid-for web app. It is optimized for iOS devices, does not need to be downloaded, receives instant updates when new features are added, and best of all, it stores the latest edition of the Financial Times for offline reading.
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The Web app will be bolstered with additional content over time, including blogs, special reports and illustrative graphics. A new ‘Clippings’ service allowing users to store articles for late reading is also in the works. The Web app will also be updated to support other devices, including Android tablets and the BlackBerry Playbook.
The timing of the Financial Times is no surprise. June 30th is the deadline for iOS apps to start using the in-app subscriptions. They want to make sure they keep their 30%.
As for current Financial Times app users, The Financial Times will continue to work, but it will not be updated, have new features added, and users will be encouraged to make the jump.
It will be interesting to see what smaller subscription-based apps do. Keeping your iOS app off the App Store does hurt the chances of being “found,” but when you’re already established like the Financial Times, this isn’t an issue. It looks like big content creators will be playing cat and mouse with Apple, as they try to get their hands on their piece of the pie.
In the end, Apple’s 30% fee will only hurt the upstart and little-guy, thus slowing down innovation.
It would appear as though Apple’s biggest competitor is themselves.
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